Maternity Leave & Pay: UK Employer Responsibilities
UK employers have clear duties around Statutory Maternity Pay (SMP), leave, and related rights—get it right to support your team and avoid costly claims. This Finance Box guide breaks down essentials like SMP calculations, pensions, KIT days, holiday, Alabaster and more, in straightforward terms.
Maternity leave and pay rules involve many nuances, eligibility tests, and frequent update. This page offers a simplified overview of employer basics only.
Always check gov.uk or seek professional advice for your situation.
SMP Basics
SMP lasts up to 39 weeks for eligible employees: 90% of Average Weekly Earnings (AWE) for the first 6 weeks, then £194.32 or 90% AWE (whichever lower) for 33 weeks.
AWE uses the 8 weeks before the 15th week prior to the due date (qualifying week) and includes bonuses, commissions, and pay rises.
Pension Contributions
Continue employer pension contributions based on normal pre-maternity earnings (not reduced SMP), plus any additional pensionable pay.
Employee contributions deduct from SMP if scheme rules apply (not salary sacrifice schemes).
Reclaiming SMP
Reclaim 92% of SMP via payroll from HMRC; small employers (Class 1 NICs ≤£45,000 prior year) get 100% + 9% compensation (109% total) via Small Employers' Relief.
Submit via Employer Payment Summary (EPS).
Advance funding for SMP is available for eligible employers.
Holiday Accrual
Employees accrue full statutory holiday (5.6 weeks/year) during all maternity leave, based on normal pattern.
Contractual extras accrue unless contract says otherwise.
KIT Days
Offer up to 10 voluntary Keeping In Touch (KIT) days during leave (not first 2 weeks post-birth); agree work type and pay in advance.
Exceeding 10 ends leave/pay automatically.
39-Week Pay Period
If an employee returns early, their 39-week SMP period (MPP) runs in the background. Pay SMP (not SSP) for any sickness until it ends.
Treat early work as KIT days if available.
Discrimination Risks
Avoid unfavourable treatment like denying promotions, pay rises, or training due to pregnancy/maternity, which is unlawful.
Conduct risk assessments; failure risks tribunal claims.
Alabaster Calculations
Per Alabaster ruling, recalculate AWE/SMP for pay rises (including national minimum wage increases) between relevant period start and MPP end, as if employee worked.
Applies retrospectively; pay arrears if needed.
Quick guide to terms:
SMP: Statutory Maternity Pay – government-paid maternity pay for eligible employees, up to 39 weeks.
MPP: Maternity Pay Period – the full 39-week SMP payment window that runs in the background, even if employee returns early; governs sickness pay rules.
AWE: Average Weekly Earnings – basis for calculating SMP (gross pay over 8 weeks, including bonuses).
KIT: Keeping in Touch days – up to 10 paid workdays during maternity leave without ending it.
HMRC: Her Majesty's Revenue and Customs – handles SMP reclaims via payroll submissions.
FPS/EPS: Full Payment Submission / Employer Payment Summary – monthly HMRC payroll reports for reclaiming SMP.
NI: National Insurance – deductions from SMP pay; relevant for small employer relief threshold.
SSP: Statutory Sick Pay – cannot start until full SMP period (39 weeks) ends, even if employee returns early.