Statutory Maternity Pay
If you are thinking about having a baby or are currently expecting a little one you may be wondering what maternity pay you could be entitled to during your maternity leave.
One of the most important aspects is understanding Statutory Maternity Pay (SMP), which is a payment you may be entitled to from your employer while you're off work caring for your baby.
How much is Statutory Maternity Pay? 💰
SMP is paid for a maximum of 39 weeks. The payment is split into two phases with different rates:
First 6 weeks: You'll receive a higher rate during this initial period. You will receive 90% of your Average Weekly Earnings (AWE)
Remaining 33 weeks: The payment rate is lower for the remaining duration. This is a flat rate of £184.03 per week (standard rate for the 24/25 tax year) or 90% of your average weekly earnings whichever is lower.
Do you pay Tax on Statutory Maternity Pay? 💷
Statutory Maternity Pay is considered taxable income. This means you'll pay income tax on it, just like your regular salary.
You'll also have to pay National Insurance contributions on your Statutory Maternity Pay.
Payslip deductions: Your employer will deduct tax and National Insurance from your Statutory Maternity Pay payments before they reach your bank account.
When will I be paid? 📆
Your employer pays your SMP in the same way as your salary is paid.
Eligibility Requirements for Statutory Maternity Pay
Here's a simple breakdown of the eligibility requirements:
To get Statutory Maternity Pay (SMP), you need to:
📃 Be an employee: Work for an employer who takes tax and National Insurance from your pay. (Agency workers need to check their contracts.)
💰 Earn enough: Earn at least £123 per week on average.
📆 Work long enough: Have worked for your employer for at least 26 weeks in a row by the 15th week before your baby is due.
Employment Status 📌
Employed, not self-employed: To be eligible for SMP, you must be an employee. This means you work under a contract of employment and your employer deducts tax and National Insurance from your wages.
Agency workers: If you're an agency worker, your eligibility depends on your specific contract and working arrangements. It's best to check with your agency or seek further advice.
Earnings Threshold 💲
Minimum earnings: You must have average weekly earnings of at least £123 per week. This is calculated based on your earnings in a specific period known as the 'qualifying period'.
Qualifying period: This is usually the 8 weeks ending on the 15th week before your Expected Week of Childbirth (EWC). We'll explore this calculation in more detail in Module 3.
Length of Employment 📆
Continuous employment: You need to have been continuously employed by your current employer for at least 26 weeks by the end of the 15th week before your EWC.
Breaks in employment: Certain breaks in employment, like sick leave or annual leave, may not affect your continuous employment. However, it's crucial to check the specific rules if you've had any breaks.
🚨 Use the government's maternity entitlement calculator to see what check your eligibility 🚨
Remember 💡
The specific rules and rates for SMP can change. Always refer to the latest official government guidance.
Key Dates to know for your Statutory Maternity Pay & Leave 📆
Here's a simple breakdown of the important dates for your maternity leave and pay:
Early Pregnancy (around week 16):
Get your MATB1 form from your midwife or doctor. This confirms your due date (Expected Week of Childbirth or EWC).
Weeks 18-26 (approx.):
This is when your average earnings are calculated to determine your Statutory Maternity Pay (SMP).
15 weeks before your EWC:
Important! Tell your employer when you want to start your maternity leave and pay. Give them your MATB1 form by this date.
11 weeks before your EWC:
The earliest you can start your maternity leave. You can start later if you want.
If your baby arrives early, your leave starts the day after the birth.
What if you are not eligible for SMP? ❌
If you arent eligible for SMP you may be entitled to Maternity Allowance. Head to the Maternity Allowance guide to learn more.
Worried about budgeting during your maternity leave?
Our ‘The Ultimate Parental Leave Money Planner’ can help you manage your finances effectively and plan.
Download now to start organising your maternity leave today.
