This article explains the six statutory parental payments you may need to administer as a UK employer in the 2026 to 2027 tax year: Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), Statutory Adoption Pay (SAP), Statutory Shared Parental Pay (ShPP), Statutory Parental Bereavement Pay (SPBP) and the new Statutory Neonatal Care Pay (SNCP). It covers who qualifies, how long each is paid, the rates, and how you recover the money from HMRC. Statutory Sick Pay is separate and has its own article.
How much is the standard weekly rate for 2026 to 2027?
The standard weekly rate that applies across SPP, ShPP, SPBP, SNCP and the later weeks of SMP and SAP is £194.32 a week for 2026 to 2027. In every case the employee receives the lower of £194.32 or 90% of their average weekly earnings, so a lower earner may be paid less but never more. If you run a company maternity, paternity or adoption scheme, your enhanced rates sit on top of this statutory floor and do not change the amount you can recover.
What is the 90% of average weekly earnings rule?
Average weekly earnings (AWE) is the average of the gross earnings on which you paid Class 1 National Insurance over a set period, normally the eight weeks ending with the qualifying week. For the first six weeks of SMP and SAP the employee is paid 90% of their AWE with no cap, so a higher earner can receive more than the standard rate during this opening period. For all other payments and the remaining weeks of SMP and SAP, the employee receives the lower of £194.32 or 90% of AWE. AWE also determines eligibility, because it must reach the Lower Earnings Limit for the employee to qualify at all. The HMRC maternity, adoption and paternity calculator for employers can work it out for you.
How does Statutory Maternity Pay work?
To qualify for SMP an employee must have been continuously employed by you for at least 26 weeks up to and into the qualifying week (the 15th week before the expected week of childbirth), have average weekly earnings at or above the Lower Earnings Limit, and give you the correct notice and proof of pregnancy. SMP is paid for up to 39 weeks: the first six weeks at 90% of AWE, then 33 weeks at the lower of £194.32 or 90% of AWE. Maternity leave itself can run for up to 52 weeks, so leave and pay are not the same length. If an employee does not qualify, give them form SMP1, because they may be able to claim Maternity Allowance from the DWP instead.
What proof of pregnancy do I need for SMP?
The standard evidence is the MATB1 maternity certificate, which a midwife or doctor usually issues no earlier than 20 weeks before the expected week of childbirth. You should not start paying SMP until you have acceptable medical evidence, and the employee must normally give it to you within 21 days of their SMP start date. The MATB1 confirms the expected week of childbirth, which anchors the qualifying week, the earliest payment date and the AWE period. Keep the certificate, or a copy, as part of your statutory pay records.
How does Statutory Paternity Pay work?
An employee qualifies for SPP if they have been continuously employed for at least 26 weeks up to and into the qualifying week, have average weekly earnings at or above the Lower Earnings Limit, and give the correct notice. SPP is paid at the lower of £194.32 or 90% of AWE. The employee can take one or two weeks of leave and pay, and where they take two weeks these can be taken consecutively or as two separate single weeks. Paternity Pay and Leave also apply to adoption and surrogacy, and the leave must finish within 52 weeks of the birth. If the employee does not qualify, give them form SPP1.
How does Statutory Adoption Pay work?
SAP mirrors SMP closely. The employee must have been continuously employed for at least 26 weeks up to and into the relevant qualifying week, have average weekly earnings at or above the Lower Earnings Limit, give the correct notice, and provide proof such as the matching certificate from the adoption agency. SAP is paid for up to 39 weeks: the first six weeks at 90% of AWE, then 33 weeks at the lower of £194.32 or 90% of AWE. Only one person in a couple can take Statutory Adoption Pay and Leave, while the other may qualify for Paternity or Shared Parental Pay. SAP also covers certain surrogacy and overseas adoption situations.
How does Shared Parental Pay work?
Shared Parental Leave and Pay lets eligible parents share the balance of the mother's or main adopter's leave and pay after the initial maternity or adoption period ends. The parent curtailing their entitlement, and their partner, must meet continuous employment, earnings and notice tests. Between them they can share up to 50 weeks of leave and up to 37 weeks of pay, which is the balance of the original 52 weeks of leave and 39 weeks of pay. ShPP is paid at the lower of £194.32 or 90% of AWE. Leave can be taken in up to three separate blocks by each parent and at the same time or different times, which makes the booking and notice rules more involved.
How does Statutory Parental Bereavement Pay work?
SPBP supports an employee who loses a child under 18 or suffers a stillbirth. To receive the pay the employee must have been continuously employed for at least 26 weeks, have average weekly earnings at or above the Lower Earnings Limit, and give the correct notice. The two-week leave entitlement applies from the first day of employment, so an employee can take the leave even if they do not qualify for the pay. SPBP is paid for up to two weeks at the lower of £194.32 or 90% of AWE, taken together or as two separate weeks, within 56 weeks of the death or stillbirth. A separate entitlement applies for each child.
How does the new Statutory Neonatal Care Pay work?
Statutory Neonatal Care Pay is the newest statutory parental payment and supports parents whose baby is admitted to neonatal care. To qualify, the employee must have at least 26 weeks of continuous employment, average weekly earnings at or above the Lower Earnings Limit, and give the correct notice. The baby must have spent seven or more continuous days in neonatal care, starting before the baby was 28 days old. The employee gets one week of leave and pay for every seven full continuous days the baby is in neonatal care, up to a maximum of 12 weeks, paid at the lower of £194.32 or 90% of AWE. Where both parents qualify the combined entitlement is still capped at 12 weeks.
What are the continuous employment and Lower Earnings Limit tests?
Almost every statutory parental payment shares two conditions: a continuous employment test and an earnings test. The continuous employment test requires the employee to have worked for you for at least 26 weeks ending in, and usually including, the relevant qualifying week. The earnings test requires their average weekly earnings, over the set reference period, to be at or above the Lower Earnings Limit, the same threshold used for National Insurance. An employee who is continuously employed but earns below the Lower Earnings Limit will not qualify for statutory pay, although they may still be entitled to the leave and to alternative support such as Maternity Allowance.
How long is each statutory parental payment paid for?
The duration differs by payment, which is a common source of error. Statutory Maternity Pay is up to 39 weeks; Statutory Paternity Pay is one or two weeks; Statutory Adoption Pay is up to 39 weeks; Statutory Shared Parental Pay is up to 37 weeks shared between the parents; Statutory Parental Bereavement Pay is up to two weeks per child; and Statutory Neonatal Care Pay is up to 12 weeks. Remember that the paid period and the leave period are not always the same, most obviously with maternity leave, which can run to 52 weeks even though pay stops at 39 weeks.
How do employers recover statutory parental payments?
You can recover a proportion of SMP, SPP, SAP, ShPP, SPBP and SNCP from HMRC, but you cannot recover Statutory Sick Pay. You calculate the recoverable amount in your payroll software and claim it on an Employer Payment Summary (EPS) each tax month, which reduces the PAYE and National Insurance you pay over rather than being refunded separately. The standard recovery rate is 92% of the statutory parental pay you have paid out. If your business qualifies for Small Employers' Relief, you recover more. Recovery is claimed through the EPS, not the Full Payment Submission.
What is Small Employers' Relief and the £45,000 threshold?
Small Employers' Relief is the higher recovery rate for smaller businesses. You qualify if your total Class 1 National Insurance, counting both employee and employer contributions, was £45,000 or less in the previous tax year, ignoring any reductions such as the Employment Allowance. If you qualify, you recover 109% of the statutory parental pay you have paid: 100% of the payment plus 9% compensation for the employer National Insurance on it. If your total Class 1 National Insurance was above £45,000, you recover at the standard 92%. The £45,000 test is applied each year, so a business can move in or out of Small Employers' Relief as its payroll changes.
What if I cannot afford to make the statutory payments?
If you do not have enough in your PAYE account to cover the statutory parental payments you owe, you can apply to HMRC to be paid in advance. You apply online up to four weeks before you need the first payment. Once an advance is in place, if the statutory payments you reclaim in a month exceed your PAYE deductions, HMRC automatically uses the surplus to reduce what you owe on the advance. To apply for advance funding relating to a previous tax year, write to HMRC with your Accounts Office reference, PAYE reference and the amount claimed.
What are Keeping in Touch days?
Keeping in Touch (KIT) days let an employee on maternity, adoption or shared parental leave do some work without ending their leave or statutory pay. An employee on maternity or adoption leave can work up to 10 KIT days, and a Shared Parental Leave employee has a separate allowance of SPLIT days. KIT days are optional and must be agreed between you and the employee. Any day worked, even for an hour, counts as a whole KIT day, and you pay for that work at an agreed rate alongside statutory pay. Going over the allowance can end the statutory pay period, so keep an accurate count.
Where can I find HMRC calculators and the correct forms?
HMRC provides an online maternity, adoption and paternity calculator for employers that works out leave dates, pay dates, the qualifying week, average weekly earnings and the amounts for SMP, SAP and SPP. There is no dedicated calculator for ShPP, SPBP or SNCP, so HMRC publishes manual calculation guidance instead. To reclaim payments and apply for advance funding, use the GOV.UK service for recovering statutory payments and report the figures on your EPS. Where an employee does not qualify, use the right non-payment form (SMP1, SPP1, the adoption equivalent, and the NEO1 for neonatal care). Keep all statutory pay records for at least three years after the end of the tax year they relate to.