What is Statutory Maternity Pay in the UK?

Maternity leave is an important period for new mothers to bond with their babies.

One of the main financial considerations for expectant mothers in the UK is Statutory Maternity Pay (SMP).

This guide will provide a comprehensive overview of SMP, including eligibility, calculation, and other related benefits.

What is Statutory Maternity Pay (SMP)?

SMP is a government-provided payment available to eligible employees during their maternity leave.

It’s designed to offer some financial support while you’re not working.

The amount you receive depends on your earnings before your maternity leave.

To qualify for Statutory Maternity Pay, you must meet the following criteria:

Be employed under a contract of employment
Earn an average weekly earning of at least the Lower Earnings Limit (£123 per week)
Have been continuously employed with the same employer for at least 26 weeks by the 15th week before the week your baby is due (or the week you expect to start looking after an adopted child)
Notify your employer of your pregnancy in writing before the end of the 15th week before the week your baby is due (or the week you expect to start looking after an adopted child)

The Statutory Maternity Pay is paid at two different rates:

First six weeks: You receive 90% of your average weekly earnings before tax.
Next 33 weeks: You receive either £184.03 per week or 90% of your average weekly earnings (whichever is lower).

It’s important to note that SMP is subject to Income Tax and National Insurance contributions.

Your average weekly earnings are calculated based on your pay over the eight weeks before the qualifying week.

The qualifying week is the 15th week before your expected week of childbirth.

Your employer will use this figure to determine your SMP.

You are entitled to a total of 52 weeks’ maternity leave.

You can start your maternity leave up to 11 weeks before your baby is due.

However, you must take at least two weeks’ compulsory maternity leave after the birth (or four weeks if you work in a factory).

SMP starts on the first day of your maternity leave.

SMP is paid for a maximum of 39 weeks. This includes both the higher rate for the first six weeks and the lower rate for the following 33 weeks.

If your baby is born early, your maternity leave and SMP can start earlier than planned.

You should inform your employer as soon as possible.

In addition to SMP, you may be eligible for other benefits such as maternity allowance, child benefit, and tax credits.

You need to check if you qualify for these benefits and how to claim them.

If you don’t meet the eligibility criteria for SMP, you may still be entitled to maternity leave, but you won’t receive any pay.

However, you might be eligible for other benefits, such as maternity allowance.

Many employers offer enhanced maternity pay, which is more than the statutory minimum.

It’s worth checking your employment contract to see if your employer provides additional maternity pay.