Earn on average at least £123 a week (Lower Earnings Limit (LEL)).*
Have worked for their employer continuously for at least 26 weeks prior to the ‘qualifying week’ - the 15th week before the expected week of childbirth. In simple terms, if they got pregnant after starting to work for you, then you need to give them maternity pay.
Give the correct notice and proof of pregnancy using a MATB1 form. Employees must request this from their midwife or doctor around 20 weeks into pregnancy, or the second scan time.
* You work out an employee’s average pay based on the eight weeks before the start of the qualifying week (QW). If they’re paid weekly that’s a piece of cake of course. If they’re paid monthly, you need to take their last two pay slips, look at their gross earnings (not the NET earnings) and calculate it from there.
SMP is currently payable for up to 39 weeks.
1. The first six weeks are paid at 90% of the employee’s average weekly earnings. (calculated based on the eight weeks before the start of the QW.
2. The remaining 33 weeks is paid at the current SMP rate. This is £156.66 per week, or 90% of their average earnings if it’s less than £156.66 (this rate was changed on 3 April 2022). Most businesses can recover 92% of any SMP paid on their payroll. Any employers who qualify for Small Employer’s Relief can reclaim 103%.
If an employee works for two employers, they can receive two lots of SMP. These work independently, for example the employee can return to work early with one employer and retain their SMP whilst still taking leave at the second. They’re just not able to get SMP from a new job they’ve joined during that time.
Once an employee returns to work, their entitlement to SMP ceases (unless they’re attending a KIT day).
If an employee has more than one baby as a result of one pregnancy, they only get one lot of SMP.
Once an employee has reached their qualifying week, if they leave, for whatever reason, even if they are dismissed, their employer is still required to give them SMP.
However if an employee leaves your company for another job, their maternity pay ceases because they’ve taken up alternative employment. They should advise their initial employer who should stop their payments.
When an employee resigns or is dismissed, their termination date will be set as normal. However they may remain on the payroll for maternity pay purposes only. If an employee agrees in writing, you can arrange to pay them any outstanding maternity pay up to the termination date as a lump sum. However if you do this, there will be an NI implication.
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