Statutory maternity pay: rates, eligibility, and how to calculate

Statutory Maternity Pay is the minimum pay an eligible employee receives during maternity leave. It is not the same as enhanced maternity pay — that is a contractual arrangement some employers offer on top of or instead of SMP. SMP is the legal floor, and getting the calculation wrong can mean underpaying an employee or overclaiming from HMRC.

The eligibility conditions for SMP have three components. First, the employee must have been continuously employed by the employer for at least 26 weeks by the end of the qualifying week (the 15th week before the expected week of childbirth). Second, her average weekly earnings in the eight weeks before the qualifying week must be at or above the lower earnings limit (£123/week for 2025/26). Third, she must still be employed — or have been employed — by you during the qualifying week.

If the employee does not qualify for SMP, she may be entitled to Maternity Allowance, which is paid directly by the Department for Work and Pensions rather than through the employer. Employers issue an SMP1 form to employees who do not qualify, so they can apply for Maternity Allowance instead.

The SMP calculation runs over 39 weeks, divided into two periods. The first six weeks are paid at 90% of the employee's average weekly earnings — there is no cap on this element. The remaining 33 weeks are paid at the lower of 90% of average weekly earnings or the flat weekly SMP rate. For 2026/27, the flat rate is £194.32 per week.

Average weekly earnings are calculated from the eight weeks of payslips ending on the last payday before the qualifying week. This window can include pay rises, bonuses, or irregular earnings. If a pay rise is awarded after the qualifying week but backdated to within the eight-week calculation window, HMRC expects the average to be recalculated using the higher figure.

SMP is paid through payroll in the same way as regular wages — it is subject to income tax and NI deductions. Employers can recover most of the SMP they pay from HMRC: small employers (with annual NI liability under £45,000) can recover 103% of SMP paid; larger employers can recover 92%. Recovery is claimed via the Employer Payment Summary (EPS) submitted to HMRC as part of RTI.

The maternity leave period and the SMP payment period are separate, though they typically run together. An employee can take up to 52 weeks of maternity leave (26 weeks Ordinary Maternity Leave and 26 weeks Additional Maternity Leave), but SMP is only payable for 39 weeks. After 39 weeks, if she chooses to remain on leave, it is unpaid.

For HR teams, the key actions are: identify the qualifying week as soon as an employee notifies pregnancy, calculate the average weekly earnings, determine eligibility, and confirm the SMP start date and payment schedule. Payments must begin no later than the agreed maternity leave start date.

See our broader guide on maternity and paternity rights: the full picture for the leave entitlements alongside the pay provisions, and statutory paternity pay in 2026 for partner pay rights.

Mellow calculates SMP eligibility and weekly amounts automatically, handles recovery via EPS, and logs the leave and pay schedule against the employee record. [Start a free trial →](https://mellowhr.com/register)