What Is Statutory Maternity Pay?
Statutory Maternity Pay, usually shortened to SMP, is a statutory payment made by an employer to an eligible employee during maternity leave. SMP can normally be paid for up to 39 weeks, even though eligible employees may take up to 52 weeks of Statutory Maternity Leave. The payment is made through the employer's normal payroll system.
SMP is subject to:
- PAYE Income Tax
- National Insurance where applicable
- Other normal payroll deductions where appropriate
Employers can offer a more generous contractual maternity pay scheme, but the employee must still receive at least their statutory entitlement where they qualify.
What Is the Statutory Maternity Pay Rate for 2026?
For statutory maternity pay 2026, the payment structure is divided into two stages.
First 6 Weeks
For the first six weeks, eligible employees receive:
- 90% of their average weekly earnings before tax.
There is no statutory weekly maximum during this initial six-week period.
Remaining 33 Weeks
For the following 33 weeks, employees receive:
- £194.32 per week or 90% of average weekly earnings, whichever is lower.
The £194.32 standard rate applies for 2026/27.
For example, if an employee's 90% average weekly earnings amount to £250, they would generally receive £194.32 during the standard-rate period. If 90% of their average weekly earnings were £170, they would normally receive £170 because this is lower than the statutory rate. Payroll software will usually perform these calculations automatically when the correct maternity information has been entered.
Who Qualifies for Statutory Maternity Pay?
Employers should check eligibility before processing SMP.
For the 2026/27 rules, an employee generally needs to:
- Be on the employer's payroll during the qualifying week
- Have been continuously employed for at least 26 weeks into the qualifying week
- Earn an average of at least £129 per week
- Provide the correct notice
- Provide evidence of the pregnancy
The qualifying week is normally the 15th week before the expected week of childbirth. The average weekly earnings requirement is important because eligibility for Statutory Maternity Leave and eligibility for Statutory Maternity Pay are not identical. An employee may qualify for maternity leave but not SMP.
How Long Is Maternity Leave in the UK?
Employees who qualify for Statutory Maternity Leave can take up to 52 weeks.
This consists of:
- 26 weeks of Ordinary Maternity Leave
- 26 weeks of Additional Maternity Leave
An employee does not have to take the full 52 weeks. However, employees must normally take at least two weeks of maternity leave after giving birth. This increases to four weeks for factory workers.
SMP, by comparison, is normally available for only 39 weeks. Therefore, an employee taking the full 52 weeks of maternity leave may have a period of unpaid maternity leave after their SMP entitlement ends.
When Can Maternity Leave Start?
The earliest maternity leave can normally begin is 11 weeks before the expected week of childbirth. There are exceptions.
For example, maternity leave can start automatically:
- The day after an early birth
- Following certain pregnancy-related sickness absences during the four weeks before the baby is due
Employers need to record the correct maternity start date because it affects both leave records and SMP calculations.
What Notice Must an Employee Give?
There are separate notice requirements for maternity leave and maternity pay.
For Statutory Maternity Leave, employees should normally tell their employer at least 15 weeks before the baby is expected:
- When the baby is due
- When they intend to start maternity leave
Once notified, the employer must confirm the leave start and end dates in writing within 28 days. For Statutory Maternity Pay, employees normally need to provide at least 28 days' notice of when they want SMP to start. Clear communication between payroll, HR and the employee can help prevent incorrect start dates.
What Is an MATB1 Certificate?
Before paying SMP, employers need evidence of the pregnancy.
This will usually be:
- An MATB1 maternity certificate, or
- Appropriate confirmation from a doctor or midwife
The employee should normally provide pregnancy evidence within 21 days of the SMP start date, although an employer can accept it later in appropriate circumstances. Employers must retain evidence of the pregnancy as part of their maternity pay records. The MATB1 certificate provides important information, particularly the expected week of childbirth.
How Is Statutory Maternity Pay Calculated?
An SMP calculation is based partly on the employee's average weekly earnings. The calculation usually considers earnings during an eight-week relevant period before the qualifying week.
Relevant earnings can include payments on which Class 1 National Insurance contributions are payable, such as:
- Basic salary
- Overtime
- Bonuses
- Commission
- Certain other earnings
HMRC provides a maternity pay calculator that employers can use to determine matters such as:
- The qualifying week
- Average weekly earnings
- SMP entitlement
- Leave periods
Average weekly earnings can become more complicated where employees receive bonuses, irregular pay or variable earnings. Employers should avoid manually estimating maternity pay where payroll software or HMRC's calculator can produce the correct statutory calculation.
How Should SMP Be Processed Through Payroll?
Statutory maternity pay should normally be processed through the employer's payroll system.
The employer should:
- Record the maternity leave start date
- Confirm SMP eligibility
- Calculate average weekly earnings
- Calculate the correct maternity pay
- Apply PAYE deductions
- Apply National Insurance where required
- Report payments through payroll
- Pay SMP on the employee's normal payday
- Maintain appropriate SMP records
SMP is treated as earnings for PAYE purposes, so employers must deduct Income Tax and National Insurance where applicable. The payroll system should also distinguish between contractual maternity pay and statutory maternity pay where the employer operates an enhanced scheme.
Can Employers Reclaim Statutory Maternity Pay?
Yes. Most employers can normally recover 92% of eligible statutory maternity payments from HMRC. For 2026/27, businesses qualifying for Small Employers' Relief can recover 109%. Small Employers' Relief generally applies where the employer paid £45,000 or less in total Class 1 National Insurance contributions during the relevant previous tax year.
The 109% recovery means a qualifying small employer can recover:
- 100% of the statutory payment, plus
- An additional 9% compensation
Employers should ensure payroll software is configured with the correct 2026/27 recovery rates.
What If an Employer Cannot Afford SMP?
Employers are responsible for paying qualifying employees even where the business is experiencing cash-flow difficulties. However, HMRC offers an advance funding process where an employer does not have enough PAYE deductions available to fund statutory payments. Businesses should consider this before missing or delaying an employee's maternity payment. The statutory payment obligation does not disappear because the employer expects to reclaim the amount later.
What Happens If the Employee Does Not Qualify for SMP?
If an employer decides that an employee does not qualify for Statutory Maternity Pay, it must provide form SMP1. The employer should provide the form within seven days of making the decision and explain why SMP cannot be paid. The employee may instead qualify for Maternity Allowance. Employers should therefore avoid simply telling an employee that they do not qualify. The correct statutory documentation should also be provided.
What Records Must Employers Keep?
Employers must retain detailed records relating to SMP.
These should include:
- Proof of pregnancy
- The date SMP started
- Dates and amounts of SMP payments
- Amounts reclaimed from HMRC
- Any weeks when SMP was not paid
- Reasons for not making a payment
These records must normally be kept for three years from the end of the tax year to which they relate. Accurate records are particularly important if HMRC later reviews the employer's statutory payment calculations or recovery claims.
Common Statutory Maternity Pay Payroll Mistakes
Maternity payroll can involve dates, qualifying periods and average earnings calculations that are easy to misinterpret.
Common mistakes include:
- Using an outdated SMP rate
- Calculating the qualifying week incorrectly
- Using the wrong average weekly earnings period
- Missing bonuses or other relevant earnings
- Applying the wrong 90% calculation
- Failing to deduct PAYE correctly
- Using the wrong HMRC recovery percentage
- Failing to obtain pregnancy evidence
- Missing employee notice requirements
- Failing to issue an SMP1 where required
- Keeping incomplete maternity records
A documented maternity payroll procedure can reduce these risks.
Statutory Maternity Pay Employer Checklist
When an employee informs the business that they are pregnant, employers should:
- Record the expected week of childbirth.
- Confirm the employee's intended maternity leave date.
- Obtain pregnancy evidence such as an MATB1.
- Calculate the qualifying week.
- Check continuous employment.
- Calculate average weekly earnings.
- Confirm whether the employee qualifies for SMP.
- Calculate the correct SMP rate.
- Confirm maternity leave dates in writing.
- Process maternity pay through payroll.
- Reclaim eligible statutory payments from HMRC.
- Maintain records for the required period.
Where eligibility or calculations are complicated, employers should check current HMRC guidance or obtain professional payroll advice.
Final Thoughts
Statutory Maternity Pay is an important part of UK payroll, and employers must calculate and report it correctly.
For statutory maternity pay 2026, eligible employees can normally receive SMP for up to 39 weeks. The first six weeks are paid at 90% of average weekly earnings, followed by 33 weeks at £194.32 or 90% of average weekly earnings, whichever is lower.
Employers can generally recover 92% of qualifying statutory payments, while businesses eligible for Small Employers' Relief can recover 109%.
Correct maternity payroll requires careful attention to eligibility, qualifying dates, average earnings, employee notices and HMRC reporting.
For businesses without an internal payroll team, professional payroll support can help ensure maternity pay calculations, statutory recovery and PAYE reporting remain accurate and compliant.