Statutory Maternity Pay (SMP) Explained

Statutory Maternity Pay (SMP) is money paid to employees who are having a baby and meet certain eligibility conditions. As an employer, you're responsible for paying SMP, but you can recover most of it from HMRC.

Current SMP Rates (2024-25)

Period	Rate
First 6 weeks	90% of average weekly earnings (no cap)
Weeks 7-39	£184.03 per week OR 90% of AWE (whichever is lower)
Weeks 40-52	Unpaid (unless employer offers enhanced pay)

From April 2025: The flat rate increases to £187.18 per week.

Who Qualifies for SMP?

To get SMP, an employee must:

Employment Conditions

• Have worked for you continuously for at least 26 weeks by the 15th week before the baby is due (the "qualifying week")
• Still be employed by you in the qualifying week
• Give you the correct notice

Earnings Conditions

• Earn at least £123 per week on average (the Lower Earnings Limit)
• Average earnings are calculated over the 8 weeks ending with the qualifying week

Notice Requirements

• Give you at least 28 days' notice before they want SMP to start
• Provide medical evidence (MATB1 form) from their midwife or GP

When SMP Starts

SMP can start:

• Earliest: 11 weeks before the expected week of childbirth
• Latest: The day after the birth

If the baby arrives early, SMP starts the day after the birth.

How Long is SMP Paid?

SMP is paid for up to 39 weeks, called the Maternity Pay Period (MPP). This is regardless of whether the employee returns to work.

The remaining 13 weeks of the 52-week maternity leave entitlement are unpaid (Ordinary Maternity Leave is 26 weeks, Additional Maternity Leave is a further 26 weeks).

Calculating SMP

Step 1: Find the Relevant Period

The 8-week period ending with the last pay day before the Saturday at the end of the qualifying week.

Step 2: Calculate Average Weekly Earnings

Add up all earnings in the relevant period, divide by 8.

Step 3: Check Against Lower Earnings Limit

If average earnings are below £123/week, the employee doesn't qualify for SMP (they may qualify for Maternity Allowance instead).

Step 4: Calculate the Payment

• Weeks 1-6: 90% of average weekly earnings
• Weeks 7-39: £184.03 or 90% of AWE (whichever is lower)

Recovering SMP from HMRC

You can recover SMP through your PAYE:

Employer Type	Recovery Rate
Most employers	92%
Small employers (NI under £45,000)	103% (92% + 3% compensation)

Recovery is done by reducing your PAYE payments to HMRC.

What If They Don't Qualify?

If someone doesn't qualify for SMP, you must:

1. Give them form SMP1 within 7 days of making the decision
2. The form explains why they don't qualify
3. They may be able to claim Maternity Allowance from Jobcentre Plus instead

Enhanced Maternity Pay

Many employers offer enhanced maternity pay above the statutory minimum. Common arrangements include:

• Full pay for a set period (e.g., 12 weeks)
• Topped-up pay for longer
• Dependent on returning to work

Check your company policy and contracts carefully - enhanced pay is contractual, not statutory.

SMP and Other Payments

Annual Leave

Employees continue to accrue annual leave during maternity leave. Many take accrued leave before or after maternity leave.

Pension

Employer pension contributions must continue during paid maternity leave, based on normal salary (not SMP).

Benefits

Non-cash benefits (car, phone, etc.) normally continue during maternity leave unless the contract says otherwise.

Key Dates for Employers

When	What
15 weeks before due date	Qualifying week - employee must be employed
28 days before SMP starts	Latest date for employee to give notice
21 days before due date	Latest employee can request to change start date
Start of MPP	Begin paying SMP
39 weeks later	SMP ends