Understanding Maternity Pay in the UK
Understanding Maternity Pay in the UK
Maternity pay is a crucial financial support for expectant and new mothers, helping you manage your income while taking time away from work to care for your baby. Knowing how maternity pay works can help you plan ahead and make the most of your entitlements during maternity leave.
Statutory Maternity Pay (SMP) vs. Additional Employer Maternity Pay
In the UK, most employees are entitled to Statutory Maternity Pay (SMP), which is the minimum amount employers must pay eligible staff during maternity leave. SMP is set by the government and paid for up to 39 weeks. For the first 6 weeks, you receive 90% of your average weekly earnings (before tax). For the following 33 weeks, you get either the standard rate set by the government or 90% of your average weekly earnings – whichever is lower.
Some employers offer more generous maternity pay schemes, often called “enhanced” or “contractual” maternity pay. These schemes can provide higher payments or longer periods of pay, but the details vary by employer. Always check your employment contract or staff handbook to see if you’re entitled to more than the statutory minimum.
Who Is Eligible for Maternity Pay?
To qualify for SMP, you must:
- Be employed by your employer continuously for at least 26 weeks up to the 15th week before your baby is due.
- Earn at least the lower earnings limit (this changes yearly; check the latest HMRC guidance) in the 8 weeks (or 2 months) before the qualifying week.
- Give your employer the correct notice and proof of pregnancy (usually a MATB1 certificate from your midwife or doctor).
If you do not meet these criteria, you might still qualify for Maternity Allowance, which is paid by the government rather than your employer.
Your Rights During Maternity Leave
Maternity pay goes hand in hand with maternity leave rights. In the UK, eligible employees can take up to 52 weeks of maternity leave – made up of 26 weeks of Ordinary Maternity Leave and 26 weeks of Additional Maternity Leave. During this time, your employment rights are protected, including your right to return to work and any pay rises or improvements to terms and conditions.
It’s also worth noting that other types of leave – such as paternity leave, shared parental leave, and adoption leave – may be available depending on your circumstances. Understanding all your options can help you make the best choices for your family. For a full picture of your rights around maternity, paternity, and parental leave, explore our guide: Your Rights to Maternity, Paternity and Parental Leave in the UK.
Related Legal Protections and Further Reading
Maternity pay is underpinned by UK employment law, including the Employment Rights Act 1996, which sets out many of your workplace rights during pregnancy and maternity leave. If you need to take sick leave during pregnancy, it’s important to understand how this might affect your maternity pay and leave – learn more in our section on Managing Sick Leave and Pay Alongside Maternity Leave.
By understanding your maternity pay and related rights, you can better prepare for your time away from work and ensure you receive the support you’re entitled to.
What is Statutory Maternity Pay (SMP)?
What is Statutory Maternity Pay (SMP)?
Statutory Maternity Pay (SMP) is the minimum amount your employer must pay you when you take maternity leave, as set out by UK law. SMP is designed to provide financial support while you are away from work to have your baby. It applies to most employees, as long as you meet certain eligibility criteria.
How Long Does SMP Last and How Is It Paid?
SMP is paid for up to 39 weeks. The payment schedule is as follows:
- First 6 weeks: You receive 90% of your average weekly earnings (before tax).
- Next 33 weeks: You receive either £172.48 per week (for the 2023/24 tax year) or 90% of your average weekly earnings – whichever is lower.
SMP is usually paid in the same way as your normal wages, for example, weekly or monthly. Tax and National Insurance are deducted as usual.
Who Pays SMP and How Is It Funded?
Your employer is responsible for paying SMP. However, most employers can reclaim 92% of the SMP they pay out from HM Revenue and Customs (HMRC). Small employers may be able to reclaim the full amount plus an additional 3%. This ensures that businesses are supported while still providing essential maternity pay to eligible employees.
Legal Basis and Further Guidance
The rules for SMP are set out in the Social Security Contributions and Benefits Act 1992 and the Statutory Maternity Pay (General) Regulations 1986. For the most up-to-date details on eligibility and payment amounts, you can read the official government guidance on Maternity pay and leave – GOV.UK.
If you are also wondering about your rights to sick pay during pregnancy, you might find our section on How Statutory Sick Pay Works When You Are Pregnant helpful.
Additional Maternity Pay from Your Employer
Many employers in the UK go beyond the legal minimum and offer enhanced, or “occupational,” maternity pay. This is extra pay on top of Statutory Maternity Pay (SMP), designed to provide greater financial support during your time away from work. Enhanced maternity pay packages vary widely between employers. Some might offer your full salary for a set period, followed by a reduced amount, while others may provide a lump sum or top up your SMP for a certain number of weeks.
To find out if you’re entitled to extra maternity pay, check your employment contract or your staff handbook. These documents should set out your employer’s maternity pay policy in detail – look for sections on “maternity benefits,” “family leave,” or “parental pay.” If you can’t find the information or if anything is unclear, don’t hesitate to ask your HR department or line manager for clarification.
It’s important to fully understand your employer’s maternity pay policy before you go on leave, as it can affect your financial planning and decisions about how long to take off. Some enhanced schemes require you to return to work for a minimum period after your leave, or you may have to repay some of the enhanced pay if you decide not to return. Make sure you’re aware of any conditions attached.
Enhanced maternity pay is just one example of the wider range of employee benefits that some employers offer. It’s worth exploring what else may be available to you, such as flexible working, childcare vouchers, or shared parental leave schemes.
If you’re considering how maternity pay works alongside other forms of leave, such as sick leave during pregnancy, you may also find it helpful to read about sick pay rights during pregnancy to understand how these rights interact.
How to Calculate Your Statutory Maternity Pay
Calculating your Statutory Maternity Pay (SMP) can seem complicated, but breaking it down step by step makes it much easier to understand. Here’s how to work out what you’re entitled to, based on UK law and government guidelines.
Step 1: Identify the Relevant 8-Week Period
Your SMP is calculated using your average weekly earnings over a specific 8-week period. This period is the eight weeks (or two months if you’re paid monthly) up to and including the last payday before the end of your “qualifying week”. The qualifying week is the 15th week before your baby is due.
For example, if your baby is due on 1st October, your qualifying week ends 15 weeks earlier. The 8-week period used for the calculation is the 8 weeks leading up to and including your last payday before that week.
Step 2: Work Out Your Average Weekly Earnings
Add together all your gross earnings during this 8-week period and divide by 8 (if you’re paid weekly) or by 2 (if paid monthly, then divide by the number of weeks in those two months).
What counts as earnings?
Earnings include your basic salary or wages, plus any bonuses, commission, overtime, holiday pay, and statutory sick pay received during the period. However, some payments such as expenses or certain benefits in kind are not included. For more details on what counts as “earnings” and how average weekly earnings are calculated for other types of statutory pay, see Calculating Your Average Weekly Earnings.
Step 3: Apply the Statutory Maternity Pay Rates
SMP is paid for up to 39 weeks and is split into two phases:
- First 6 weeks: You receive 90% of your average weekly earnings (before tax).
- Next 33 weeks: You receive either the statutory rate (set by the government each tax year) or 90% of your average weekly earnings, whichever is lower. For the 2024/25 tax year, the statutory rate is £184.03 per week.
Example Calculation
Let’s say your average weekly earnings during the relevant 8-week period are £350.
- Weeks 1–6:
90% of £350 = £315 per week - Weeks 7–39:
90% of £350 = £315
The statutory rate is £184.03 (2024/25).
Since £315 is higher than the statutory rate, you’ll receive £184.03 per week for these weeks.
Total SMP:
- First 6 weeks: £315 × 6 = £1,890
- Next 33 weeks: £184.03 × 33 = £6,073
Practical Tips
- Check your payslips to confirm which payments were included in your average weekly earnings.
- If your pay varies (for example, due to overtime or bonuses), these can increase your SMP if paid during the relevant period.
- Employers must provide you with a written statement showing how your SMP was calculated if you request it.
Further Support
Calculating SMP can be complex, especially if your pay changes or you have irregular working hours. To make things easier, you can use the official Maternity, Adoption and paternity calculator for employers – GOV.UK to check your entitlement and payment schedule.
Remember, these rules are set out by the Social Security Contributions and Benefits Act 1992 and related regulations, so your employer must follow them. If you have any doubts about your calculation, speak to your employer’s HR department or seek advice from a legal professional.
Determining Your Average Weekly Earnings
When working out your maternity pay, the first step is to determine your average weekly earnings (AWE). This figure is crucial because it decides whether you qualify for Statutory Maternity Pay (SMP) and how much you’ll receive.
How to Calculate Your Average Weekly Earnings
Your average weekly earnings are based on your gross pay over a specific period before you go on maternity leave. The calculation follows rules set out in the Social Security Contributions and Benefits Act 1992 and supporting regulations.
The calculation period:
Your AWE is worked out using your earnings from the eight weeks (or two months, if you’re paid monthly) leading up to and including the last payday before the end of your ‘qualifying week’. The qualifying week is the 15th week before your baby is due.
For example:
If your baby is due on 15th July, your qualifying week ends on 31st March. Your employer will look at your pay from the eight weeks up to and including your last payday before 31st March.
What Pay Periods to Include and Exclude
- Include: All pay actually received during the relevant eight-week period counts, even if it covers work done earlier.
- Exclude: Pay received outside this period, even if it relates to work done during it, is not counted. Backdated pay, bonuses, or overtime are only included if paid within the calculation window.
If you’re unsure which paydays apply, check your payslips or ask your employer for clarification.
What Counts as Earnings for SMP Purposes
For SMP, ‘earnings’ means gross pay before tax and National Insurance. This includes:
- Wages or salary
- Statutory Sick Pay (if paid during the calculation period)
- Bonuses, commission, and overtime (if paid in the relevant period)
- Holiday pay
- Certain other payments, such as maternity pay from a previous pregnancy if it falls within the calculation period
Non-cash benefits (like a company car or childcare vouchers provided through a salary sacrifice scheme) usually do not count towards your AWE.
Practical Example
Suppose you’re paid monthly, and your last payday before the qualifying week is 25th March. Your employer would total your gross earnings from the two monthly paydays before and including 25th March, then divide by eight (if you’re paid weekly) or by two (if you’re paid monthly) to get your average weekly earnings.
Common Questions
What if my earnings vary?
If your pay fluctuates due to overtime or commission, your AWE will reflect these variations if they were paid during the calculation period.
What if I was off sick or on unpaid leave?
Periods of reduced or zero pay (such as sick leave or unpaid leave) can lower your AWE, which may affect your eligibility for SMP.
To learn more about how average weekly earnings are calculated for other statutory payments, see our guide on Calculating Your Statutory Sick Pay.
Understanding SMP Payment Rates and Periods
When you qualify for Statutory Maternity Pay (SMP) in the UK, your payments are made over a maximum of 39 weeks. The way these payments are calculated and scheduled depends on your average weekly earnings and the rules set out by the government.
SMP Payment Rates: Weeks 1–39
SMP is paid in two distinct phases:
1. First 6 weeks:
You receive 90% of your average weekly earnings (before tax). There is no upper limit during this period – whatever your average weekly wage is, you’ll get 90% of it.
2. Remaining 33 weeks:
You are paid either the standard SMP rate or 90% of your average weekly earnings (whichever is lower). For the tax year 2024/25, the standard SMP rate is £184.03 per week. If 90% of your average weekly earnings is less than this figure, you’ll receive the lower amount.
Example
If your average weekly earnings are £200:
- First 6 weeks: 90% of £200 = £180 per week
- Next 33 weeks: You’ll get £180 per week (since this is less than the standard rate)
If your average weekly earnings are £250:
- First 6 weeks: 90% of £250 = £225 per week
- Next 33 weeks: You’ll get £184.03 per week (as this is lower than 90% of your earnings)
How SMP Payments Are Scheduled
SMP is usually paid in the same way and at the same time as your normal wages (for example, weekly or monthly). Your employer will deduct tax and National Insurance as usual. Payments can start any time from 11 weeks before your baby is due, depending on when you choose to begin your maternity leave, or earlier if you are off work due to a pregnancy-related illness.
If Your Earnings Vary
Your SMP entitlement is based on your average weekly earnings during the ‘qualifying period’ – this is usually the eight weeks up to and including the 15th week before your baby is due. If your earnings fluctuate (for example, due to overtime, bonuses, or unpaid leave), your SMP will be calculated on the average across those eight weeks. If you have a period of low or no earnings during this time, it could affect the amount of SMP you receive.
If your earnings are close to the Lower Earnings Limit (LEL) – which is £123 per week for 2024/25 – make sure you understand how any changes might impact your entitlement. If you’re not eligible for SMP, you may be able to claim Maternity Allowance instead.
For those who are also considering how other types of statutory pay work during pregnancy, you may find it helpful to compare SMP with Statutory Sick Pay entitlements during pregnancy.
Understanding these payment rates and schedules can help you plan your finances during maternity leave. If you have any doubts about how your pay is calculated, ask your employer for a breakdown or seek further advice from a legal or financial adviser.
Other Important Considerations When Calculating Maternity Pay
When calculating your maternity pay, there are several important factors beyond the basic figures that can affect what you receive and how it fits with your overall pay and benefits. Here’s what you need to know:
Interaction with Other Benefits and Pay
Maternity pay can interact with other types of pay and benefits you may be entitled to. For example, you cannot receive Statutory Maternity Pay (SMP) and Statutory Sick Pay (SSP) at the same time. If you become ill during your maternity leave, you will continue to receive maternity pay rather than switching to sick pay. For more details on how sick pay works during pregnancy and its relationship with maternity leave, see Managing Sick Leave and Pay Alongside Maternity Leave.
Holiday pay is another key consideration. You continue to accrue (build up) your annual holiday entitlement while on maternity leave, just as if you were at work. This means you can take any unused holiday before or after your maternity leave. For a detailed explanation of how this works and your rights, read our guidance on Do You Accrue Holiday on Maternity Leave in the UK?.
If You Are Self-Employed or Not Eligible for SMP
If you are self-employed or do not meet the eligibility criteria for SMP (for example, if you have not worked for your employer long enough or do not earn enough), you may still be entitled to Maternity Allowance. This is a benefit paid by the government rather than your employer. To qualify for Maternity Allowance, you usually need to have been employed or self-employed for at least 26 weeks in the 66 weeks before your baby is due, and you must have earned at least £30 a week in at least 13 of those weeks. The amount and duration of Maternity Allowance can vary depending on your circumstances.
Keeping Track of Payments and What to Do If There’s a Problem
It’s important to keep a record of your maternity pay – note the dates and amounts you receive, and check them against your payslips or bank statements. If you notice any discrepancies or if you think you have not been paid correctly, contact your employer as soon as possible. Employers are legally required to provide you with written information about your maternity pay entitlement (usually via form SMP1 if you are not eligible for SMP). If you are unable to resolve issues directly with your employer, you can seek advice from ACAS or Citizens Advice, or consider making a claim to an employment tribunal.
By being aware of these considerations, you can help ensure you receive the correct maternity pay and protect your rights during your leave.
What If You’re Not Eligible for Statutory Maternity Pay?
If you’re not eligible for Statutory Maternity Pay (SMP), you’re not alone – many women in the UK find themselves in this situation each year. SMP is only available if you meet certain criteria. Generally, you must have been employed by the same employer for at least 26 weeks by the end of the 15th week before your baby is due, and you must earn at least £123 per week (before tax) on average. If you don’t meet these requirements – for example, if you’re self-employed, recently changed jobs, or your earnings are too low – you won’t qualify for SMP.
However, not being eligible for SMP doesn’t mean you’re left without support. Most people in this situation can apply for Maternity Allowance, a benefit provided by the government to help those who are pregnant but don’t qualify for SMP. Maternity Allowance is available if you’ve been employed or self-employed for at least 26 weeks in the 66 weeks before your baby’s due date, and you’ve earned at least £30 a week in 13 of those weeks. The amount you receive depends on your recent earnings, but it can be up to £172.48 per week for up to 39 weeks (2024/25 rates). For full eligibility details and information on how to apply, visit the Maternity Allowance: Overview – GOV.UK page.
If you’re unsure whether you qualify for SMP or Maternity Allowance, it’s a good idea to seek advice from your employer’s HR department or contact your local Jobcentre Plus. You can also get guidance from organisations like Citizens Advice. Remember, if your situation involves illness during pregnancy and you’re not eligible for SMP, you might want to learn more about your sick pay rights during pregnancy, as you could be entitled to Statutory Sick Pay instead.
Understanding your rights and options ensures you get the financial support you’re entitled to during maternity leave. Don’t hesitate to reach out for help if you’re unsure about your eligibility or the application process.
Checking Your Maternity Pay and Resolving Issues
Checking Your Maternity Pay and Resolving Issues
Keeping track of your maternity pay is important to ensure you receive the correct amount throughout your leave. Here’s how you can monitor your payments, what to do if something goes wrong, and where to find help.
How to Keep Track of Your Maternity Pay
Start by reviewing your employer’s maternity pay policy and your payslips. Your payslip should clearly show any maternity pay you receive, including statutory maternity pay (SMP) and any additional employer contributions. Make a note of:
- The date your maternity leave started.
- The expected payment schedule (usually weekly or monthly).
- The amount you should receive each pay period, especially as SMP rates may change after the first six weeks.
Keep a record of all correspondence with your employer regarding your maternity pay. This can help resolve any misunderstandings quickly.
What to Do If There’s a Problem
If you notice a discrepancy – such as missing payments or incorrect amounts – take these steps:
- Contact your employer or payroll department: Ask for a breakdown of how your maternity pay was calculated. Employers are legally required to provide this information.
- Check your eligibility: Make sure you meet the criteria for SMP, such as having worked for your employer for at least 26 weeks by the 15th week before your baby is due, and earning at least £123 per week (2023/24 tax year).
- Request a written explanation: If your employer says you’re not eligible, they must give you form SMP1 explaining why within seven days of their decision.
- Raise a formal grievance: If you’re not satisfied with your employer’s response, follow your company’s grievance procedure.
Getting Advice and Support
If you’re unable to resolve the issue directly with your employer, there are organisations that can help:
- HM Revenue & Customs (HMRC): They can investigate if you believe your statutory maternity pay has been wrongly refused or underpaid.
- Acas: Offers free and impartial advice on employment rights, including maternity pay disputes. Their guidance covers how to check your rights and what steps to take if things go wrong. For more details, visit Checking your rights – Maternity leave and pay – Acas.
For related concerns, such as managing sick leave during pregnancy alongside maternity leave, you may find it helpful to read more about Managing Sick Leave and Pay Alongside Maternity Leave.
Understanding your maternity pay rights can help you feel more secure during your leave. If in doubt, seek advice early to ensure you receive what you are entitled to under UK law.
Related Leave and Pay Options
When planning for a new arrival, it’s important to know that maternity leave and pay are just one part of the range of support available to parents in the UK. Understanding your full range of options can help you and your partner make the most of your entitlements and plan your time off more effectively.
In addition to maternity leave, partners may be eligible for Paternity Leave and Paternity Pay. This allows fathers or partners (including same-sex partners) to take up to two weeks off work following the birth or adoption of a child. Eligibility for statutory paternity pay depends on factors like your length of employment and average earnings, similar to the rules for statutory maternity pay. Taking advantage of both maternity and paternity leave can help families share responsibilities and support each other during the early weeks.
Beyond these, you might also want to explore other forms of parental leave, such as shared parental leave, which allows eligible parents to split leave and pay more flexibly. Understanding how these options fit together can help you decide what’s best for your family’s circumstances. For a broader overview of how maternity, paternity, and parental leave interact – and how they fit within your wider employment rights – see the section on Maternity, Paternity, and Parental Leave in our UK legal overview.
By exploring all your options and understanding the relevant legal entitlements, you can make informed decisions about your family’s leave and financial planning during this important time.
