What is Statutory Maternity Pay?
Statutory Maternity Pay (SMP) is a legal entitlement for eligible pregnant employees in the UK. It is paid by the employer through normal payroll, subject to tax and National Insurance, and can be reclaimed from HMRC in most cases.
What are the current SMP rates (from April 2026)?
| Period | Rate |
|---|---|
| Weeks 1-6 | 90% of average weekly earnings (no cap) |
| Weeks 7-39 | £194.32 per week or 90% of AWE (whichever is lower) |
| Weeks 40-52 | Unpaid (but entitled to maternity leave) |
SMP is paid for a maximum of 39 weeks. Statutory maternity leave lasts up to 52 weeks in total (39 paid, 13 unpaid).
What are the qualifying conditions for SMP?
To receive SMP, the employee must:
- Be employed by you continuously for at least 26 weeks by the end of the qualifying week (the 15th week before the expected week of childbirth)
- Earn at least the Lower Earnings Limit (£123 per week for 2025/26) on average in the 8 weeks (or 2 months) up to and including the qualifying week
- Provide at least 28 days' notice of when they want SMP to start
- Provide evidence of pregnancy (MATB1 certificate issued by a midwife or GP, no earlier than 20 weeks before the due date)
- Have stopped working (SMP cannot start before the 11th week before the EWC)
How do you calculate average weekly earnings?
Average weekly earnings (AWE) determine both eligibility and the rate for weeks 1-6:
- Identify the relevant period: the 8 weeks (weekly paid) or 2 months (monthly paid) ending with the last payday on or before the Saturday of the qualifying week
- Total gross pay in that period (including bonuses, overtime, and back pay)
- Divide by the number of weeks (or convert monthly to weekly)
Example: An employee paid monthly earns £3,000 gross per month. Over the 2-month relevant period, total pay is £6,000. AWE = £6,000 / 8.69 (average weeks in 2 months) = approximately £690.45 per week.
- Weeks 1-6: 90% of £690.45 = £621.41 per week
- Weeks 7-39: £194.32 per week (because £194.32 is lower than 90% of AWE)
What is the SMP payment timeline?
- Qualifying week (QW): 15th week before the EWC
- Earliest SMP start: 11th week before the EWC
- Latest SMP start: Day after the birth
- MATB1 certificate: Issued from 20 weeks before the EWC
- Compulsory maternity leave: First 2 weeks after birth (4 weeks for factory workers)
What is enhanced maternity pay?
Many UK employers choose to offer enhanced maternity pay above the statutory minimum. Common arrangements include:
- Full pay for the first 6-12 weeks, then SMP rate
- 50% pay for a set period after the initial full-pay period
- A flat enhancement above SMP for the full 39 weeks
Enhanced maternity pay terms should be clearly stated in the employment contract or employee handbook.
How do employers reclaim SMP from HMRC?
- Small employers (annual NI liability of £45,000 or less) can reclaim 103% of SMP paid
- Larger employers can reclaim 92% of SMP paid
- Claims are made through your payroll software by reducing your PAYE payment to HMRC
- You can apply for advance funding if you cannot afford to wait
What happens when employees do not qualify for SMP?
If an employee does not meet the qualifying conditions for SMP, you must:
- Issue form SMP1 explaining why they do not qualify
- The employee can then claim Maternity Allowance from Jobcentre Plus (up to £194.32/week for 39 weeks, from April 2026)
How Grove HR Helps
Grove HR calculates SMP automatically based on the employee's earnings history, tracks the qualifying week and relevant period, generates MATB1 reminders, and integrates SMP payments into payroll preparation. The system handles enhanced maternity pay calculations where applicable.
Frequently Asked Questions
When should an employee tell their employer about their pregnancy?
By law, the employee must notify their employer by the 15th week before the expected week of childbirth (the qualifying week). However, they must inform the employer of the pregnancy before maternity leave starts. Many employees tell their employer earlier, but there is no legal requirement to do so before the qualifying week.
Can an employee work during maternity leave?
Employees can work up to 10 Keeping in Touch (KIT) days during their maternity leave without losing SMP. These are optional for both parties. Any work beyond 10 KIT days will end the SMP entitlement for that week.
What happens to maternity pay if the baby is born early?
If the baby is born before the 11th week before the EWC and the employee has not yet started maternity leave, SMP is triggered automatically from the day after the birth. The employee's qualifying conditions are assessed as normal based on the qualifying week.
Rachel Richardson
Head of Growth & Marketing, Grove HR
Rachel leads growth and marketing at Grove HR, with over a decade of experience in UK HR technology. She writes practical guides to help small businesses navigate employment law and build better workplaces.