Statutory Adoption Pay and Leave

Introduction

If you're employing someone who is adopting a child or having a baby through a surrogacy arrangement, they may be entitled to Statutory Adoption Pay and Leave. This article explains who qualifies, how much to pay, when leave can be taken, and how to manage the process as an employer.

What is Statutory Adoption Pay and Leave?

When an employee takes time off to adopt a child or become a parent through surrogacy, they may qualify for both Statutory Adoption Leave (time off work) and Statutory Adoption Pay (payment during that leave). These are statutory rights, meaning they're set by law.

Statutory Adoption Leave allows employees to take up to 52 weeks off work. The first 26 weeks is called 'Ordinary Adoption Leave' and the last 26 weeks is 'Additional Adoption Leave'.

Statutory Adoption Pay is paid for up to 39 weeks during this leave period.

Who qualifies for Statutory Adoption Leave?

To qualify for Statutory Adoption Leave, your employee must:

• Be classed as an employee (not self-employed or a contractor)
• Give you the correct notice (see the Notice requirements section below)

That's it. There's no minimum length of service required for the leave itself. You can ask for proof of the adoption or surrogacy, but employees don't have to provide it unless you request it.

Who qualifies for Statutory Adoption Pay?

Statutory Adoption Pay has stricter requirements. Your employee must:

• Have worked for you continuously for at least 26 weeks by any day in the week they were matched with a child (the 'matching week')
• Earn at least £129 a week on average (gross, before tax) during an 8-week period before the matching week (called the 'relevant period')
• Give you the correct notice
• Provide proof of the adoption (if you ask for it)

For overseas adoptions, the 26-week continuous employment must be completed by the start of the week when pay will begin (rather than the matching week).

For surrogacy arrangements, the 26-week continuous employment must be completed by any day in the 15th week before the baby is due.

When can adoption leave start?

The start date depends on the type of adoption:

UK adoptions: Leave can start on the date the child starts living with the employee, or up to 14 days before the expected placement date.

Overseas adoptions: Leave can start when the child arrives in the UK or within 28 days of this date.

Surrogacy arrangements: Leave can start on the day the child is born or the day after.

How much is Statutory Adoption Pay?

For the 2025/26 tax year, Statutory Adoption Pay is:

• First 6 weeks: 90% of the employee's average gross weekly earnings
• Next 33 weeks: £194.32 per week or 90% of average gross weekly earnings (whichever is lower)

You must deduct tax and National Insurance from these payments, just as you would with normal wages.

How to calculate average weekly earnings

You need to work out your employee's average weekly earnings during the 'relevant period' – normally an 8-week period ending with the last payday on or before the Saturday of the matching week.

For weekly paid employees: Add up all earnings paid in the relevant period and divide by 8 (the number of weeks).

For monthly paid employees: Add up all earnings paid in the relevant period, divide by 2 (number of months), multiply by 12, then divide by 52.

Don't round up or down to whole pence – keep the exact figure.

The calculation must include all earnings on which Class 1 National Insurance contributions are due (or would be due if earnings were high enough). For 2025/26, average weekly earnings must be at least £129 for the employee to qualify for Statutory Adoption Pay.

Notice requirements

For Statutory Adoption Pay: Employees must give you 28 days' notice before they want payments to start, unless the time between matching and placement is shorter.

For Statutory Adoption Leave: Within 7 days of being matched with a child, employees must tell you:

• How much leave they want
• Their leave start date
• The expected or actual placement date

Notice doesn't have to be in writing unless you request it.

You must then write to the employee within 28 days to confirm their leave start and end dates.

Different rules apply for overseas adoptions and surrogacy arrangements. For overseas adoptions, employees have 28 days from receiving 'official notification' to tell you the notification date and expected UK arrival date. For surrogacy, employees must tell you at least 15 weeks before the due date when the baby is due and when they want leave to start.

Changing leave dates

If an employee wants to change their leave start date, they must give you 28 days' notice before either their original start date or the new start date (whichever is earlier).

If they want to return to work on a different date, they must give you 8 weeks' notice.

Proof of adoption

You can ask employees to provide proof of adoption to qualify for Statutory Adoption Pay. For UK adoptions, this must show:

• Name and address of the adoption agency and employee
• The matching date (such as a matching certificate)
• The expected or actual placement date

For overseas adoptions, proof must also include the official notification from the relevant UK authority and evidence of when the child arrived in the UK.

For surrogacy arrangements, if you ask for proof, employees must provide a written statement confirming they intend to apply for a parental order within 6 months of the birth and expect it to be granted.

Who cannot qualify

Employees will not qualify for adoption leave or pay if they:

• Become a special guardian or kinship carer
• Adopt a stepchild or family member
• Adopt privately (without permission from a UK authority or adoption agency)

Offering more than the statutory minimum

You can offer more generous adoption leave or pay through a company scheme if you wish. Make sure your policies are clear and available to all staff.

Even if you pay more than the statutory amount, you can usually only reclaim 92% of the statutory amount from HMRC. Small employers may qualify for Small Employers' Relief, which allows you to reclaim 109%.

Employment rights during adoption leave

Your employee's employment rights are protected during adoption leave, including their right to:

• Accrue holiday
• Return to their job
• Continue receiving non-cash contractual benefits (such as childcare vouchers, company car, or mobile phone)

You must still pay Statutory Adoption Pay even if your business stops trading.

Record keeping

You must keep records of the proof of adoption or surrogacy that employees provide. This helps you demonstrate that payments were made correctly if HMRC asks to see your records.

Sources

• Statutory Adoption Pay and Leave: employer guide
• Statutory Adoption Pay: manually calculate your employee's payments

This article provides general guidance based on current HMRC rules. For advice specific to your situation, speak to your accountant.