SE76361 – Social security benefits: statutory maternity pay

Interaction between SMP and any other maternity pay

The SMP scheme does not affect a woman's right to any other maternity payments provided by her employer. But SMP must be offset against any employer's maternity pay for the same period. Where the employer's maternity pay is greater than SMP, the employer will only pay the rate of occupational maternity pay. If the SMP is greater than the employer's maternity pay, the employer will pay the rate of SMP.

SMP and statutory sick pay ( SE76350) cannot be paid to a person for the same period.

Women who do not qualify for SMP will still be able to claim maternity allowance from the DSS if they have paid the appropriate National Insurance contributions. Maternity allowance is a separate benefit and is not taxable ( SE76100).

How employers recover the cost of SMP

The SMP legislation allows the employer to recover the cost of paying SMP by deducting the full amount from the National Insurance contributions and Income Tax payments due to the Accounts Office under the PAYE system.