Statutory Maternity Pay UK 2026: Employer Guide | AccountingStack

Statutory Maternity Pay (SMP) is paid for up to 39 weeks: the first 6 weeks at 90% of the employee’s average weekly earnings, then 33 weeks at the lower of the statutory rate (£194.32 from April 2026) or 90% of average weekly earnings. Most employers can reclaim 92% of SMP from HMRC; small employers eligible for Small Employers’ Relief can reclaim 103%. Employees not eligible for SMP may instead qualify for Maternity Allowance through the Department for Work and Pensions.

This guide covers SMP rates, eligibility, calculation, reclaim mechanics, the alternative Maternity Allowance, and the practical employer steps before, during, and after maternity leave.

SMP at a glance

The 2026/27 structure:

The total SMP entitlement is 39 weeks. Statutory maternity leave is up to 52 weeks; the final 13 weeks are unpaid SMP-wise but the employment continues with usual employee rights.

Eligibility

To qualify for SMP, the employee must:

• Have been continuously employed for at least 26 weeks by the end of the 15th week before the expected week of childbirth (the “qualifying week”)
• Have average weekly earnings at least equal to the Lower Earnings Limit (£125 in 2026/27 — verify current figure)
• Provide evidence of pregnancy via Form MATB1 (issued by the GP or midwife from around 20 weeks)
• Give the employer at least 28 days’ notice of when SMP is to start (or as soon as reasonably practicable)

Employees who do not qualify for SMP may instead qualify for Maternity Allowance (see below).

How to calculate average weekly earnings

Average weekly earnings (AWE) are calculated over the 8-week reference period ending with the qualifying week (the 15th week before the expected week of childbirth).

The calculation:

1. Identify the 8 weeks of pay relevant to the reference period
2. Total gross pay (everything liable to NI) over those 8 weeks
3. Divide by 8

Example: an employee earns £500 per week. AWE = £500. SMP first 6 weeks = £450 (90% of £500). SMP weeks 7–39 = lower of £194.32 (from April 2026) or 90% × £500 = £194.32 (because the statutory rate is lower).

For higher earners, the first 6 weeks at 90% can be substantially more than the statutory rate. For lower earners (where 90% of AWE is below £194.32), the rate stays at 90% of AWE for the entire 39 weeks.

Reclaiming SMP from HMRC

Employers reclaim SMP through their Employer Payment Summary (EPS):

• Standard rate: 92% of SMP paid is reclaimable
• Small Employers’ Relief (SER): 103% of SMP paid is reclaimable for employers whose Class 1 NI bill in the qualifying tax year was below the SER threshold (verify current threshold for 2026/27)

The reclaim is offset against your monthly PAYE liability. So if you have paid £1,000 in SMP in a month and qualify for SER, you can reduce your PAYE/NI payment to HMRC by £1,030 the following month.

Most small businesses qualify for SER. Check eligibility carefully; if you qualify, the 103% reclaim more than compensates for the SMP cost.

For wider statutory pay context including SSP changes from April 2026, see our SSP guide.

Maternity Allowance: when SMP doesn’t apply

Maternity Allowance is paid by the Department for Work and Pensions (DWP), not the employer. It applies to:

• Self-employed individuals
• Employees who don’t qualify for SMP (typically those who haven’t been employed long enough)
• Workers in flexible or short-term arrangements

Maternity Allowance is up to 39 weeks at the same statutory rate (£194.32 from April 2026) or 90% of average weekly earnings, whichever is lower. There is no first-6-weeks-at-90% boost — it is the lower flat rate throughout.

For self-employed individuals, eligibility depends on having paid Class 2 NI for at least 13 of the 66 weeks before the expected week of childbirth.

Practical employer steps

Before maternity leave

• Risk assessment. Under the Management of Health and Safety at Work Regulations 1999 regulation 16, employers must risk-assess the work for new and expectant mothers. Action any identified risks.
• Reasonable adjustments. May be required for medical issues, fatigue, or specific pregnancy-related conditions.
• Written notice acknowledgement. Acknowledge the employee’s notice of maternity leave start date in writing within 28 days.

During maternity leave

• Keep in touch (KIT) days. Up to 10 KIT days are allowed without losing SMP. The employee can choose whether to take them; the employer cannot require them.
• Workplace updates. Keep the employee updated on team news, restructures, and any internal opportunities.
• Continued accrual. Annual leave continues to accrue throughout the entire 52-week maternity leave period.

Returning to work

• Same job rule. The employee returning within the first 26 weeks (Ordinary Maternity Leave) is entitled to the same job. Returning during Additional Maternity Leave (weeks 27–52), the employee is entitled to the same job or, if not reasonably practicable, a similar job on no less favourable terms.
• Flexible working request. The returning employee can make a flexible working request, which the employer must consider reasonably.
• Tax code adjustments. If KIT days have been worked and paid, adjust the employee’s tax code through the next FPS submission.

Common mistakes

Five common SMP errors:

Wrong AWE calculation period

Using the wrong 8-week reference period. The window ends with the qualifying week (15 weeks before EWC), not with the start of maternity leave or any other date.

Forgetting to claim Small Employers’ Relief

Many small employers stick with the standard 92% reclaim because they don’t realise they qualify for the 103% rate. Check your prior-year NI bill against the SER threshold annually.

Late MATB1 acceptance

The MATB1 must be accepted by the employer before SMP can begin. Late submission of the MATB1 by the employee can delay the start of SMP, though employers should be flexible where possible.

Not enrolling pension contributions during maternity leave

Pension auto-enrolment contributions continue throughout paid maternity leave (and are based on the SMP amount). Some employers stop contributions in error, leading to underpayment claims.

Treating Maternity Allowance as SMP

Maternity Allowance is paid by DWP, not the employer. Employees who don’t qualify for SMP receive a Form SMP1 from the employer explaining why, which they then submit to DWP for Maternity Allowance.

Key takeaways

• SMP is paid for up to 39 weeks: first 6 at 90% AWE, then 33 at lower of £194.32 (April 2026) or 90% AWE
• Eligibility requires 26 weeks’ continuous employment by the qualifying week
• AWE is calculated over the 8-week reference period ending with the qualifying week
• Standard reclaim is 92% of SMP; Small Employers’ Relief is 103%
• Maternity Allowance from DWP applies where SMP eligibility isn’t met
• 10 keep-in-touch (KIT) days allowed without loss of SMP

Frequently asked questions

How much is SMP for 2026/27? £194.32 per week from April 2026 for weeks 7 to 39 (or 90% of average weekly earnings if lower). The first 6 weeks are paid at 90% of average weekly earnings without the statutory rate cap.

How long is SMP paid for? Up to 39 weeks. Statutory maternity leave is up to 52 weeks but the final 13 weeks are unpaid. Employees can choose to return earlier or later within the 52-week window with appropriate notice.

Can I reclaim SMP from HMRC? Yes. Standard reclaim is 92% of SMP paid. Small employers (whose previous-year Class 1 NI bill was below the SER threshold) can reclaim 103% under Small Employers’ Relief. Reclaim is offset against your monthly PAYE liability.

What is a keep-in-touch day? A day during maternity leave when an employee can work without loss of SMP. Up to 10 KIT days are allowed during the 39-week SMP period. Both sides must agree to the KIT day; neither side can compel it.

What if my employee doesn’t qualify for SMP? Issue Form SMP1 explaining why. The employee may then qualify for Maternity Allowance from DWP, which pays at the same statutory rate (£194.32 from April 2026 or 90% of AWE if lower) for up to 39 weeks.

(Verify the current LEL and Small Employers’ Relief threshold for 2026/27 before quoting specific figures.)

Useful resources

GOV.UK — Statutory Maternity Pay tables 2026 https://www.gov.uk/government/publications/statutory-maternity-pay-table-of-dates-for-employee-entitlement/statutory-maternity-pay-tables-2026

Acas — Maternity leave and pay https://www.acas.org.uk/statutory-maternity-leave-and-pay

GOV.UK — Maternity Allowance https://www.gov.uk/maternity-allowance