Statutory maternity pay

Statutory maternity pay

Statutory maternity pay (SMP) is paid to clients who are (or have recently been) employees and who take maternity leave.

A client’s average gross weekly earnings must be at least the NI lower earnings limit. She must have worked continuously for her employer for 26 weeks up to and including the 15th week (called the ’qualifying week’) before the week in which her baby is due.

SMP is paid for a maximum of 39 weeks. For the first six weeks, clients get a higher rate equal to 90 per cent of average weekly earnings and a further 33 weeks at the lower rate. These are the minimum amounts of maternity pay; the client’s employer might offer more generous contractual maternity pay. Clients who do not qualify for SMP may be able to claim MA (see here). Entitlement to SMP does not depend on the client returning to work.

SMP is claimed from the client’s employer and is paid in the same way as her normal pay. The employer must be given relevant notice and information within a strict time limit. SMP is not means tested, but counts as earnings for means-tested benefits. The first £100 of a client’s weekly SMP is ignored for tax credits; anything above £100 is counted as employment income.

SMP is taxable.