Statutory Maternity Pay (SMP)

In plain English

Statutory Maternity Pay is the legal minimum pay an eligible employee receives during maternity leave. It is paid by the employer through normal payroll, with PAYE and National Insurance deducted as for normal pay. The employer reclaims most of the cost from HMRC.

How long it runs

SMP runs for up to 39 weeks, in two phases:

• First 6 weeks — 90% of the employee's average weekly earnings (no upper cap)
• Remaining 33 weeks — the standard SMP weekly rate set by the government, or 90% of average weekly earnings if that is lower

The flat rate is reviewed each April. Always verify the current value at gov.uk before processing payroll.

Who qualifies

To be eligible an employee must:

• Have worked for the same employer continuously for at least 26 weeks by the qualifying week (the 15th week before the expected week of childbirth)
• Earn at least the Lower Earnings Limit on average in the eight weeks before the qualifying week
• Give the employer correct notice of the leave and produce a MAT B1 certificate from their midwife or doctor

Employees who don't qualify for SMP — short service or low earnings — may be entitled to Maternity Allowance from the DWP instead.

Reclaiming from HMRC

Most employers can reclaim 92% of SMP paid back from HMRC through the payroll system. Smaller employers (Class 1 NI bill of £45,000 or less in the previous tax year) qualify for Small Employers' Relief and can reclaim 103% — the extra 3% is to compensate for the NI cost of the SMP itself.

Interaction with company maternity pay

Many employers offer enhanced maternity pay above the statutory minimum — full pay for the first 13 weeks, half pay for further weeks, and so on. Enhanced schemes typically include SMP rather than paying on top of it.