What is Statutory Maternity Pay?
Statutory Maternity Pay (SMP) is the minimum maternity pay employers must provide. It is paid for up to 39 weeks: the first 6 weeks at 90% of average weekly earnings, and weeks 7-39 at the lower of 90% AWE or £187.18 per week (2025/26 rate). Employers can offer enhanced maternity pay above these minimums.
Can employers reclaim SMP from HMRC?
Yes. All employers can reclaim 92% of SMP from HMRC via their payroll. Small employers, those with a total employer NI bill of £45,000 or less in the previous tax year, can reclaim 103%, meaning HMRC pays them slightly more than they paid out. This 3% compensation covers administration costs.
What is Shared Parental Leave?
Shared Parental Leave (SPL) allows eligible parents to share up to 50 weeks of leave and up to 37 weeks of Statutory Shared Parental Pay between them. The mother must end her maternity leave to trigger SPL. ShPP is paid at the same rate as SMP weeks 7-39: the lower of 90% AWE or £187.18 per week.