A Complete Guide on Statutory Maternity Pay

Statutory Maternity Pay (SMP) is a government benefit designed to support employees during maternity leave. It ensures that eligible workers continue to receive part of their income while they take time off to have a baby.

SMP provides financial stability for up to 39 weeks and can be combined with Statutory Maternity Leave, giving parents the time and security they need to prepare for and care for their newborn. Understanding who qualifies for Statutory Maternity Pay and how to claim it is essential for both employees and employers managing payroll statutory maternity pay.

Statutory Maternity Pay

Statutory Maternity Pay (SMP) is paid for up to 39 weeks.

You get:

• 90% of your average weekly earnings (before tax) for the first 6 weeks
• £156.66 or 90% of your average weekly earnings (whichever is lower) for the next 33 weeks

SMP is paid in the same way as your wages (for example monthly or weekly). Tax and National Insurance will be deducted.

You can use the maternity pay calculator for help in calculating Statutory Maternity Pay in payroll. This ensures accurate processing, whether handled in-house or through outsourced payroll services UK that specialise in payroll processing maternity pay UK.

If you take Shared Parental Leave, you’ll get Statutory Shared Parental Pay (ShPP). ShPP is £156.66 a week or 90% of your average weekly earnings, whichever is lower.

Start date

SMP usually starts when you take your maternity leave.

It starts automatically if you’re off work for a pregnancy-related illness in the 4 weeks before the week (Sunday to Saturday) that your baby is due. Many new parents ask, “When does maternity pay start?” and this rule helps you determine exactly that.

Problems and disputes

Ask your employer to explain your SMP if you think it’s not right.

If you disagree about the amount or your employer cannot pay (for example because they’re insolvent), contact the Statutory Payment Disputes Team. Employers can also seek help from payroll support for small businesses or payroll training UK programmes to ensure compliance with statutory pay rules.

Eligibility

To be eligible for maternity benefits, you must meet certain conditions related to your employment status, earnings, and length of service.

These rules ensure that all eligible employees receive fair support during their maternity period. It’s important to inform your employer as early as possible to secure your entitlements and help with accurate payroll statutory maternity pay records.

Statutory Maternity Leave

You qualify for Statutory Maternity Leave if:

• you’re an employee, not a ‘worker’
• you give your employer the correct notice

Statutory Maternity Pay (SMP)

To qualify for SMP you must:

• earn on average at least £123 a week
• give the correct notice and proof you’re pregnant
• have worked for your employer continuously for at least 26 weeks continuing into the ‘qualifying week’ the 15th week before the expected week of childbirth

If you usually earn an average of £123 or more a week, and you only earned less in some weeks because you were paid but not working (‘on furlough’) under the Coronavirus Job Retention Scheme, you may still be eligible.

You cannot get SMP if you go into police custody during your maternity pay period. It will not restart when you’re discharged.

Early Births or If you lose your Baby

You can still get Statutory Maternity Leave and SMP if your baby:

• is born early
• is stillborn after the start of your 24th week of pregnancy
• dies after being born

If you’re not eligible for SMP

Your employer must give you form SMP1 explaining why you cannot get SMP within 7 days of making their decision. You may be eligible for Maternity Allowance instead.

Knowing the difference between Maternity Allowance and Statutory Maternity Pay helps employees understand what support they can claim depending on their work status and income.

How to claim?

At least 15 weeks before your due date, tell your employer when the baby is due and when you want to start your maternity leave. Your employer can ask for this in writing.

Your employer must write to you within 28 days confirming your start and end dates.

Use the maternity planner to work out when you must claim your maternity leave and understand how to claim Statutory Maternity Pay accurately. Many businesses use a payroll company for maternity pay or rely on payroll outsourcing statutory pay services to ensure everything runs smoothly.

Statutory Maternity Pay (SMP) process

Tell your employer you want to stop work to have a baby and the day you want your SMP to start. You must give them at least 28 days’ notice (in writing if they ask for it) and proof that you’re pregnant.

Your employer must confirm within 28 days how much SMP you’ll get and when it will start and stop.

If they decide you’re not eligible, they must give you form SMP1 within 7 days of making their decision and explain why. Employers can also refer to statutory maternity pay for employers guidance to ensure compliance during payroll processing maternity pay UK.

Proof you’re Pregnant

You need to give your employer proof of the pregnancy to get SMP. You do not need it for maternity leave.

Within 21 days of your SMP start date (or as soon as possible if the baby’s born early), give your employer either:

• a letter from your doctor or midwife
• your MATB1 certificate (doctors and midwives will give you this no more than 20 weeks before the due date)

You will not get SMP if you do not give your employer proof that the baby is due.

Conclusion

Statutory Maternity Pay ensures financial support for employees during their maternity period, helping them manage essential expenses while taking care of their health and their baby’s needs.

By understanding eligibility, deadlines, and how to claim Statutory Maternity Pay, employees can plan their maternity leave without financial stress. Employers can also streamline the process with payroll outsourcing statutory pay or seek expert help from outsourced payroll services UK to maintain compliance.

Partnering with a trusted payroll company for maternity pay or opting for payroll support for small businesses can make managing maternity pay efficient and stress-free.

Frequently Asked Questions

1. How long can I receive Statutory Maternity Pay?

You can receive SMP for up to 39 weeks.

2. What if my weekly earnings are below £123?

If your earnings are below £123 on average, you may not qualify for SMP but you could be eligible for Maternity Allowance.

3. When does maternity pay start automatically?

SMP starts automatically if you’re off work for a pregnancy-related illness within 4 weeks before your baby is due.

4. Can I get SMP if my baby is born early?

Yes, you can still get SMP if your baby is born early, stillborn after 24 weeks, or dies after birth.

5. What happens if my employer cannot pay SMP?

If your employer cannot pay, contact the Statutory Payment Disputes Team for assistance or seek professional payroll statutory maternity pay support from a payroll expert.

6. Do I need to provide proof of pregnancy to get SMP?

Yes, you must provide a doctor’s or midwife’s letter, or a MATB1 certificate, as proof of pregnancy.

7. Can employers get help with processing maternity pay?

Yes. Employers can use payroll training UK or work with outsourced payroll services UK to handle SMP accurately and stay compliant with employment law.