Shared Parental Leave Pay: Calculation and Entitlement

Shared Parental Pay (ShPP) allows eligible parents to share the 37 weeks of statutory pay that would normally go to the mother as Statutory Maternity Pay (SMP). Understanding how it works helps you support flexible parenting arrangements.

What Is Shared Parental Pay?

Shared Parental Pay (ShPP) is statutory pay available when parents take Shared Parental Leave (SPL).

Key points:

• Available for up to 37 weeks in total (between both parents)
• Rate: £184.03 per week (2024-25) or 90% of average weekly earnings (whichever is lower)
• Mother must curtail (end) her SMP early to create ShPP
• Each parent applies for ShPP separately
• Paid by each parent's own employer

How ShPP Relates to SMP

Statutory Maternity Pay Lasts 39 Weeks

SMP breakdown:

• Weeks 1-6: 90% of average weekly earnings (no cap)
• Weeks 7-39: £184.03 or 90% AWE (whichever is lower)

Compulsory maternity leave: First 2 weeks after birth (4 weeks for factory workers)

Converting SMP to ShPP

The mother can end her maternity leave and SMP early. The unused weeks become available as ShPP.

Formula:

39 weeks total SMP - Weeks of SMP taken - 2 compulsory weeks = ShPP weeks available

Example: Mother takes 20 weeks of maternity leave and SMP.

39 - 20 = 19 weeks available as ShPP

(The 2 compulsory weeks are already included in the 20 taken.)

First 6 Weeks Are Different

The first 6 weeks of SMP (90% with no cap) cannot be shared.

The mother must take these (or forfeit them if she doesn't).

ShPP starts from week 7 onwards of what would have been the maternity pay period.

Total ShPP Available

Maximum: 37 Weeks

39 weeks SMP - 2 compulsory maternity weeks = 37 weeks maximum

If the mother returns after 2 weeks, up to 37 weeks of ShPP could theoretically be available.

In practice: Most mothers take some maternity leave first, reducing ShPP weeks available.

Shared Between Parents

The 37 weeks is a total pool to be shared between both parents.

Examples:

• Mother takes 10 weeks, father takes 27 weeks
• Mother takes 20 weeks, each parent takes 10 weeks afterward
• Mother takes 30 weeks, father takes 7 weeks

Eligibility for ShPP

Both Parents Must Qualify

For ShPP to be available, both parents must meet certain conditions (even if only one intends to take ShPP).

Mother's Eligibility

The mother (or primary adopter) must:

• Be entitled to SMP, Maternity Allowance (MA), or Statutory Adoption Pay (SAP)
• Have curtailed (ended) their maternity/adoption pay early
• Meet the employment and earnings test

Partner's Eligibility

The partner must:

• Meet the employment and earnings test
• Share responsibility for the child

Employment and Earnings Test

Employee must:

• Have been employed by same employer continuously for 26 weeks by the end of the qualifying week
• Earn at least £123 per week (Lower Earnings Limit)
• Still be employed when taking ShPP

Other parent must:

• Have worked for at least 26 weeks in the 66 weeks before the expected week of childbirth
• Earned at least £390 in total in 13 of those 66 weeks (around £30/week)

Example Scenario

Mother: Employee earning £500/week, 26 weeks' service ✓

Father: Employee earning £600/week, worked 50 of the last 66 weeks, earned £50/week = £2,600 over 13 weeks ✓

Result: Both parents eligible. ShPP can be shared.

Calculating ShPP Rate

Individual Calculation

Each parent's ShPP is calculated based on their own earnings, not their partner's.

Formula

Step 1: Calculate average weekly earnings over 8-week period ending with last pay day before the qualifying week.

Step 2: ShPP rate:

Lower of: (AWE × 90%) OR £184.03

Example 1: High Earner

Average weekly earnings: £800/week

90% = £720/week
ShPP = £184.03/week (lower of the two)

Example 2: Lower Earner

Average weekly earnings: £200/week

90% = £180/week
ShPP = £180/week (lower of the two)

Example 3: Below Threshold

Average weekly earnings: £100/week

Below £123 LEL = No ShPP entitlement

Curtailment of SMP

What Is Curtailment?

Curtailment means the mother formally ends her SMP early, converting unused weeks into ShPP.

Curtailment Notice

The mother must give her employer:

• Curtailment notice stating the date SMP will end
• At least 8 weeks' notice before the curtailment date

Form: Usually provided by employer, or can use standard template.

Cannot Curtail Before 2 Weeks

SMP cannot be curtailed before the end of the compulsory 2-week maternity leave period.

Revocation

The mother can revoke (cancel) her curtailment notice if:

• She does so within 6 weeks of giving it, OR
• Her partner dies

After 6 weeks: Curtailment is binding.

How Parents Share ShPP

Each Parent's Employer Pays Separately

Mother's employer: Pays ShPP for the mother's ShPP blocks.

Partner's employer: Pays ShPP for the partner's ShPP blocks.

Notice of Entitlement

Before taking SPL/ShPP, parents must give their employers:

• Notice of entitlement - confirms both parents are eligible
• Details of leave periods intended
• Signed declarations

Varying Leave/Pay Periods

Parents can change their minds and vary the leave pattern.

Variation notice: Must give at least 8 weeks' notice before each block of leave.

Limits: Each parent can give up to 3 notices (though some changes within a notice don't count against the limit).

Continuous vs Discontinuous Leave

Continuous Leave

Continuous leave: One unbroken period of SPL.

Employer must accept if employee is eligible and gives proper notice.

ShPP paid for the entire continuous period (up to the parent's entitlement).

Discontinuous Leave

Discontinuous leave: Multiple blocks of SPL with gaps (returning to work between blocks).

Example: 4 weeks SPL, back to work for 8 weeks, then 6 weeks SPL.

Employer can: Accept, refuse, or propose alternative dates.

If refused: Employee can take the leave as one continuous block or withdraw the request.

ShPP: Paid for each block of leave taken (if eligible).

Payment During SPL

When ShPP Is Paid

ShPP is paid for weeks where the employee is on SPL (subject to their ShPP entitlement).

Payment dates: Normal payroll dates during SPL.

Weeks Without Pay

If an employee takes SPL but has exhausted their ShPP entitlement, those weeks are unpaid (unless enhanced company scheme applies).

Example:

• 37 weeks ShPP available
• Mother took 25 weeks of SMP
• Partner takes 20 weeks SPL
• Partner's ShPP: 39 - 25 = 14 weeks paid, remaining 6 weeks unpaid

Recovering ShPP from HMRC

Same as SMP Recovery

Employers can recover ShPP through PAYE:

Employer Type	Recovery Rate
Most employers	92%
Small employers (Class 1 NI ≤ £45,000)	103%

How to Recover

Deduct from your PAYE payment to HMRC.

Record on:

• Full Payment Submission (FPS)
• Payroll records
• Employee payslip (show ShPP separately)

Enhanced Shared Parental Pay

Company Schemes

Employers may offer enhanced pay above ShPP.

Common approaches:

• Full pay for a set period
• Topped-up pay matching enhanced maternity pay
• Combination of full pay and statutory pay

This is contractual - check your policy.

Recovery

Only statutory ShPP can be recovered from HMRC. Enhanced top-ups cannot be recovered.

ShPP and Other Rights

Annual Leave

Annual leave continues to accrue during SPL.

Employees often take accrued leave at the end of SPL or before returning.

Pension Contributions

Employer pension contributions must continue during paid SPL (based on normal salary, not ShPP).

During unpaid SPL: Check your pension scheme rules. Often, contributions pause.

Other Benefits

Non-cash benefits (car, phone, health insurance) typically continue during SPL.

Common Scenarios

Scenario 1: Mother Takes 16 Weeks, Partner Takes 21 Weeks

Mother:

• Takes 16 weeks maternity leave and SMP
• Curtails SMP after week 16

ShPP available:

39 - 16 = 23 weeks

Partner:

• Takes 21 weeks SPL
• Receives 21 weeks ShPP

Result: 2 weeks of potential ShPP unused (could be taken by either parent if they change plans).

Scenario 2: Both Parents Take SPL Simultaneously

Mother:

• Takes 12 weeks maternity leave
• Curtails SMP after week 12

ShPP available:

39 - 12 = 27 weeks

Both parents take 10 weeks SPL at the same time:

• Mother receives 10 weeks ShPP (her employer pays)
• Partner receives 10 weeks ShPP (their employer pays)

Total ShPP used: 20 weeks (7 weeks remaining in the pool).

Scenario 3: Partner Doesn't Meet Earnings Test

Mother: Eligible for SMP, meets employment test.

Partner: Employed but earns £100/week (below £123 LEL).

Result: Mother can take SPL, but no ShPP available (because partner doesn't meet the employment and earnings test). Mother would be better off staying on maternity leave and SMP.

Adoption and ShPP

Statutory Adoption Pay (SAP)

For adoptions, the primary adopter gets Statutory Adoption Pay (SAP) instead of SMP (same rates and duration).

ShPP: SAP can be curtailed and converted to ShPP in the same way as SMP.

Same rules apply for eligibility and calculation.

Surrogacy

Intended Parents

Intended parents in surrogacy can access SPL/ShPP if they meet eligibility conditions.

Timing: Runs from the expected week of birth (not placement).

Record Keeping

What to Keep

For each employee taking SPL/ShPP:

• Notice of entitlement
• Curtailment notice (from mother/primary adopter)
• Leave booking notices
• Variation notices
• Average weekly earnings calculation
• ShPP paid
• Weeks of ShPP used
• Recovery amounts

Retention: At least 3 years after the tax year.

Common Calculation Mistakes

Mistake 1: Forgetting Mother Must Curtail

Issue: Assuming partner can take ShPP without mother ending her SMP.

Correction: Mother must give curtailment notice at least 8 weeks before ShPP can start.

Mistake 2: Thinking ShPP Is 39 Weeks

Issue: Calculating ShPP as if 39 weeks are available.

Correction: Maximum is 37 weeks (39 minus 2 compulsory maternity weeks).

Mistake 3: Paying Mother's Rate to Partner

Issue: Paying the partner ShPP at the rate based on mother's earnings.

Correction: Each parent's ShPP is based on their own average weekly earnings.

Mistake 4: Not Checking Partner's Earnings Test

Issue: Assuming ShPP is available without checking the partner meets the 26 weeks worked / £390 test.

Correction: Both parents must meet eligibility tests.

Mistake 5: Overpaying ShPP

Issue: Continuing to pay ShPP after the 37-week pool is exhausted.

Correction: Track total SMP + ShPP used. Once 39 weeks reached, no more statutory pay.

Notice and Administration

Timeline

At least 8 weeks before taking SPL/ShPP:

• Mother gives curtailment notice
• Each parent gives notice of entitlement to their employer
• Leave booking notice provided

Variations: 8 weeks' notice required for changes.

Forms and Documentation

Employers should provide:

• Notice of entitlement form
• Curtailment notice form
• Leave booking form

Or use government templates.

Practical Tips

Tip 1: Provide Clear Information

Give employees clear guidance on:

• SPL/ShPP eligibility
• How to curtail SMP
• Notice requirements
• How to book leave

Tip 2: Check Both Parents' Eligibility

Before confirming ShPP, verify:

• Mother eligible for SMP
• Both parents meet employment and earnings tests

Tip 3: Use Payroll Software

Modern payroll systems handle ShPP calculations and recovery.

Ensure: Staff understand how to process SPL/ShPP correctly.

Tip 4: Coordinate with Mother's Employer

If both parents work for different employers, they each deal with their own employer.

Communication between parents is key - employers don't coordinate directly.

Tip 5: Keep Clear Records

Track:

• How many weeks of SMP the mother took
• Curtailment date
• ShPP weeks available
• ShPP weeks used by each parent
• Weeks remaining

Key Takeaways

• ShPP rate: £184.03/week or 90% AWE (whichever is lower)
• Maximum: 37 weeks total between both parents
• Curtailment required: Mother must end SMP early to create ShPP
• Calculated individually: Each parent's ShPP based on their own earnings
• Both must qualify: Both parents must meet employment and earnings tests
• 8 weeks' notice: Required for curtailment and leave booking
• Recovery: 92% or 103% through PAYE

Shared Parental Pay offers flexibility for modern families. Understanding the rules helps you support employees while managing the administrative complexity.