How to calculate statutory maternity and paternity pay

For employers, managing SMP involves more than simply making payments. Let’s look at the main areas that employers need to consider when managing maternity pay. 

Statutory maternity pay eligibility 

To qualify for SMP, an employee must meet certain conditions, including having worked for their employer continuously for at least 26 weeks by the end of the 15th week before the expected week of childbirth and earning at least the Lower Earnings Limit for National Insurance, averaged over the relevant eight-week period. These rules apply to both full-time and part-time employees. 

It’s worth noting that employees have day-one rights to maternity leave, meaning they don’t need a minimum length of service to be able to take leave. Employees using a surrogate may also be eligible for maternity leave and pay if they meet the relevant requirements. 

Statutory maternity pay rates 

SMP is paid at different rates depending on the stage of maternity leave. Employees receive 90% of their average weekly earnings for the first six weeks, with no upper limit. For the remaining 33 weeks, they receive the lower of 90% of average weekly earnings or the statutory weekly rate, which is currently £194.32 (2026/27), up from £187.18 in 2025/26. Rates are reviewed each April in line with CPI inflation, so employers should check the current figure at the start of each tax year and update payroll accordingly. If you pay enhanced maternity pay above the statutory minimum, you can still reclaim the statutory element from HMRC. 

Some employers choose to offer enhanced maternity pay above the statutory minimum as part of their wider employee benefits package. Enhanced rates can help to attract and retain employees while providing additional support during parental leave. 

Supporting employees who don’t qualify for SMP 

Not every employee will meet the eligibility criteria for SMP. For example, they may not have worked for the employer long enough, or may earn below the Lower Earnings Limit for National Insurance. Someone who doesn’t qualify may still be able to receive Maternity Allowance, which is a payment provided by the government rather than their employer. 

If an employee isn’t eligible for SMP, employers should explain the outcome clearly and provide information on alternative support where appropriate. Take a look at this guidance from the government for more detailed information about how these payments work. 

Time off for pregnancy-related appointments 

Employees are entitled to reasonable paid time off for antenatal appointments during pregnancy. Employers should ensure that they understand which appointments qualify and keep appropriate records while maintaining employee confidentiality. 

Tracking pregnancy-related leave accurately helps to manage payroll and absence records while supporting employees throughout their pregnancy. 

How to calculate statutory maternity pay 

Calculating SMP involves working out an employee’s average weekly earnings during the relevant eight-week earnings period, and applying the correct statutory rates. Average weekly earnings should include qualifying payments such as wages, overtime, commission and some bonuses where applicable. Employers need to use accurate payroll information to make sure net pay is correct before calculating SMP so employees receive accurate pay throughout their leave. 

Shared parental leave allows eligible parents to split time off work after the birth, adoption or placement of a child. While it gives families more flexibility over how they divide leave, it means that employers have to manage more varied leave patterns. 

Shared parental leave eligibility 

To qualify for shared parental leave, parents must meet specific employment and earnings criteria. The parent taking leave must also share responsibility for the child and provide the required notices to their employer. Check eligibility carefully and keep records of any decisions to ensure that leave and pay arrangements are managed correctly. 

Splitting leave between parents 

Eligible parents can share up to 50 weeks of leave and up to 37 weeks of statutory pay between them. They can choose to take leave separately or at the same time, depending on what works best for their family circumstances. This means that employers may need to manage changing leave schedules and update payroll records accordingly. 

Managing shared parental pay 

Shared parental pay is paid at the statutory rate and needs to be processed accurately through payroll. Employers should ensure that they understand how to calculate statutory maternity pay, as the original maternity entitlement affects shared parental pay. Clear communication between employees, HR and payroll teams helps prevent errors when leave arrangements change. 

Managing different types of statutory pay can create admin challenges for employers. Let’s look at how payroll tools can help you to meet your SMP employer obligations. 

Improving accuracy of statutory pay calculations 

Accurate calculations are essential when processing statutory payments. Payroll software makes it easier to calculate statutory maternity pay by applying the correct rates and using up-to-date payroll information. An SMP calculator can help check payment amounts, while modern AI tools in payroll software can support automation and reduce the risk of manual errors. 

Reducing admin time when managing statutory payments 

Managing multiple leave types manually can take significant time, particularly for growing businesses. Payroll automation streamlines repetitive tasks such as calculations, payment processing and record updates. This allows HR and payroll teams to focus on supporting employees while maintaining accurate processes. 

Supporting employer obligations with built-in compliance tools 

Payroll systems help employers to meet their responsibilities by supporting accurate calculations, record keeping and reporting. Strong payroll compliance processes reduce the risk of incorrect payments or missing information, making it easier to manage changing regulations. 

Maintaining accurate payroll records and payslips 

Clear payroll records are essential when managing SMP, SPP and other statutory payments. Payroll software can help you to maintain reliable records, making it easier to track payments and answer employee queries. Make sure payslips accurately reflect payments made and provide employees with clear information about their earnings. 

Preparing reports for HMRC claims 

Employers may be able to reclaim some statutory payments from HMRC, and payroll systems can increase accuracy here by preparing the information needed to submit FPS and EPS reports. Maintaining accurate records throughout the payment process supports claims and demonstrates compliance.