Statutory Maternity Pay and Leave

Introduction

As an employer, you must provide eligible employees with statutory maternity leave and pay when they have a baby. Employees can take up to 52 weeks of maternity leave, and those who qualify can receive Statutory Maternity Pay for up to 39 weeks. Understanding the eligibility requirements, notice periods, and payment calculations will help you manage maternity leave correctly and reclaim most of what you pay.

What is Statutory Maternity Leave?

Statutory Maternity Leave allows eligible employees to take time off work when they have a baby. The leave is split into two parts:

• Ordinary Maternity Leave – the first 26 weeks
• Additional Maternity Leave – the last 26 weeks

This gives employees a total entitlement of up to 52 weeks. Leave can start as early as 11 weeks before the expected week of childbirth, unless the baby arrives early. In that case, leave automatically starts the day after the birth.

Employees must take at least 2 weeks off after giving birth (or 4 weeks if they work in a factory). This is a legal requirement to protect their health.

Who Qualifies for Maternity Leave?

Any employee with an employment contract (a written or verbal agreement setting out terms and conditions of work) qualifies for maternity leave, regardless of how long they have worked for you. They must give you the correct notice, which we cover below.

What is Statutory Maternity Pay?

Statutory Maternity Pay (SMP) is a payment you make to eligible employees during their maternity leave. It can be paid for up to 39 weeks and is calculated as follows:

• First 6 weeks: 90% of the employee's average weekly earnings before tax
• Remaining 33 weeks: £187.18 or 90% of their average weekly earnings, whichever is lower

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

Who Qualifies for Statutory Maternity Pay?

Eligibility for SMP is more restrictive than for maternity leave. Employees must meet all of these requirements:

• Be on your payroll in the 'qualifying week' – the 15th week before the expected week of childbirth
• Have worked continuously for you for at least 26 weeks up to any day in the qualifying week
• Earn at least £125 a week (gross) in an 8-week 'relevant period'
• Give you the correct notice
• Provide proof of pregnancy

The Lower Earnings Limit of £125 per week applies for the 2025/26 tax year.

If an employee does not qualify for SMP, they may be able to claim Maternity Allowance from the government instead.

Proof of Pregnancy

Before you pay SMP, you must receive proof of pregnancy. This is usually either a doctor's letter or a maternity certificate called an MATB1. Doctors and midwives typically issue MATB1 certificates 20 weeks before the due date.

The employee should give you this proof within 21 days of the SMP start date, though you can agree to accept it later. If you have not received proof 13 weeks after the SMP start date, you do not have to pay SMP.

You must keep records of the proof of pregnancy for 3 years from the end of the tax year it relates to.

Notice Periods for Maternity Leave

At least 15 weeks before the baby is due, employees must tell you:

• The date the baby is due
• When they want to start their maternity leave

They can change their leave start date by giving you 28 days' notice. Notice does not have to be in writing unless you specifically request it.

Once they tell you, you must confirm their leave start and end dates in writing within 28 days. You cannot refuse maternity leave or change the amount of leave they want to take.

Employees can also change their return to work date if they give you 8 weeks' notice.

Notice Periods for Statutory Maternity Pay

Employees must give you 28 days' notice of when they want their SMP to start. This is usually the same date as their maternity leave start date.

You can refuse to pay SMP if the employee does not give you this notice and cannot provide a reasonable excuse.

Calculating Average Weekly Earnings

To work out how much SMP to pay, you need to calculate the employee's average weekly earnings during the 'relevant period'. This is usually the 8 weeks before the qualifying week.

The end of the relevant period is the last normal payday on or before the Saturday of the qualifying week. The start is the day after the last normal payday falling at least 8 weeks earlier.

Include all earnings on which Class 1 National Insurance contributions are due (or would be due if they were high enough). The calculation method depends on how often you pay the employee:

Weekly paid employees: Add up all earnings in the relevant period and divide by 8.

Monthly paid employees: Add up all earnings in the relevant period, divide by 2, multiply by 12, then divide by 52.

Do not round the figure up or down to whole pence.

What if the Baby is Born Early?

If the baby arrives early, maternity leave starts automatically the day after the birth. The employee must give you the birth certificate or a document signed by a doctor or midwife confirming the actual date of birth. You must then write to them confirming the new end date for their leave.

For very premature births (15 weeks or more before the due date), you will need to calculate SMP manually or use payroll software with this feature.

What if the Baby Dies?

Employees still qualify for maternity leave and pay if the baby is stillborn after the start of the 24th week of pregnancy, or dies after being born.

Refusing Statutory Maternity Pay

If an employee does not qualify for SMP, you must give them form SMP1 within 7 days of your decision. They must receive this form within 28 days of their request for SMP or the birth, whichever is earlier. The employee can then use this form to claim Maternity Allowance instead.

Reclaiming Payments

You can usually reclaim 92% of the SMP you pay. If you qualify for Small Employers' Relief, you may be able to reclaim 109%. This applies even if you cannot afford to make the payments – you can apply for an advance from HMRC.

Even if you offer enhanced maternity pay above the statutory amount through a company maternity scheme, you can usually only reclaim 92% of the statutory amount.

Record Keeping

You must keep records for HMRC for 3 years from the end of the tax year they relate to. This includes:

• Proof of pregnancy (a photocopy is acceptable)
• The date SMP began
• Your SMP payments and dates
• The SMP you have reclaimed
• Any weeks you did not pay and why

You can use form SMP2 or keep your own records.

Employment Rights During Maternity Leave

An employee's employment rights are protected during maternity leave. This includes their right to pay, holidays, and returning to their job. You still have to pay SMP even if you stop trading.

Sources

• Statutory Maternity Pay and Leave: employer guide
• Work out your employee's payments for Statutory Maternity Pay

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