FAQ: Statutory Maternity Pay (SMP)

Contents

If you are not familiar with some of the terms used please see Glossary of terms used for an explanation.

Need more help?

If you have any other questions relating to SMP which have not been covered you can get more help by calling the Employer Helpline, or you can send an email and we will reply within two working days.

Maternity leave for babies due on or after 5 October 2008

Women whose babies are due on or after 5 October 2008 are entitled to the benefit of the same non-pay contractual terms and conditions during Additional Maternity Leave as those to which they are entitled to during Ordinary Maternity Leave. For more information go to the Business Link website or in Northern Ireland contact the LRA at www.Ira.org.uk or phone 028 9034 1442.

Does my employee qualify for SMP?

There are several qualifying conditions which must be met before you can pay SMP to your employee, including confirmation of the pregnancy which is usually in the form of a MATB1 signed by a doctor or midwife. Follow the flowchart - Operating the SMP scheme (PDF 48K) to decide if SMP should be paid. The SMP calculator will help you work out whether you should pay SMP to your employee and how much you should pay.

How much SMP will my employee get?

The first six weeks of payment at 90 per cent of your employee’s average weekly earnings then the lower of 90 per cent of those average weekly earnings or £123.06.

How do I calculate SMP?

The SMP calculator will help you to work out if you have to pay SMP to your employee and if so how much SMP you have to pay her. It will also help you to work out how much SMP funding you can get.

What do I do if my employee is not entitled to SMP?

If your employee does not meet all the qualifying conditions, see Flowchart – Operating the SMP/SPP schemes (PDF 93K) you do not have to pay SMP. Instead you should return the MATB1 to your employee after taking a photocopy for your records. Then complete form SMP1 and give it to your employee as she may be able to claim Maternity Allowance (MA).

My employee is pregnant and has gone off work sick because of a pregnancy related illness, do I pay SSP or SMP?

This depends on when the baby is due and the length of absence. If the mother is off work sick because of her pregnancy and the absence continues into, or starts within, the four week period starting on the Sunday of the fourth week before the week baby is due, there are special rules, see Pregnancy related illness.

What do I need to do if the baby is born early?

If the baby is born early you may be able to pay SMP as long as the mother meets the qualifying conditions. But if the baby is stillborn special rules apply. For more information see Stillbirth.

What happens if I give a payrise to an employee on maternity leave?

You must recalculate SMP average weekly earnings to take account of payrises awarded or which would have been awarded to a woman had she not been on maternity leave. For more information see Does your employee earn enough?

What if I don't have enough money to pay SMP to my employee?

You can ask your Accounts Office to pay you an advance of the amount you need to pay your employee's SMP. For more information see Recovering Statutory Payments

Does my employee have to tell me when she intends to return to work?

Yes. If the mother doesn’t choose to take the full leave entitlement she must give you eight weeks notice of when she intends to return to work. For more information see 'When should your employee give you dates for pay and leave' in the helpbook E15 (2008) Pay and time off work for parents.

Is SMP subject to tax and NIC?

Yes. SMP is regarded as earnings for PAYE and NIC. But it may be that the earnings will not be high enough to attract payment of NIC and may also produce a tax rebate.

What records should I keep?

You must keep medical evidence of the pregnancy (form MATB1 or other similar evidence) records of the payment dates and amount paid, the date the pay period began a record of any weeks in the 39 week period when SMP wasn’t paid and reasons why. Form P11 and relevant end of year forms should also be completed. For more information see Keeping records