SMP is a weekly payment so should normally be paid weekly when
it becomes due, which is the last day (day 7) of the SMP pay week.
However, as SMP may start on any day of the week, the last
day of the pay week may not be the day wages are normally paid so
payment of SMP does not align with the normal pay roll pay
frequency. In order to pay full weeks of SMP the payment of some
weeks of SMP would be delayed until the next pay period.
For babies due on or after 1 April 2007 employers may choose
to align the payments of SMP with the payroll by paying part-weeks
of SMP at each end of the pay period. This is most likely to occur
where an employee is paid calendar monthly
For example if the SMP pay week runs from Wednesday to
Tuesday and wages are paid on the last Friday of the month, then
SMP for the last Wednesday, Thursday and Friday of the month can be
paid in advance at the end of pay period as 3/7 of a week. The SMP
for the Saturday to Tuesday of that week is then paid at the
beginning of the next month.
There is no daily rate of SMP so part-weeks should be
calculated as follows. Either:
Although the SMP may be paid as part-weeks, it is still a weekly
payment so the manner of payment does not affect uprating or the
final amount of SMP payable. If entitlement to the SMP is not
confirmed at the end of the SMP pay week, that portion paid in
advance is not SMP and is not recoverable.
The employee and employer may also agree between them for it
to be paid as a lump sum. See
SPM21030
SMP is subject to PAYE and NICs like all earnings, whether
it is paid on the normal pay days or as a lump sum.
For SMP paid as part of a compensation or compromise
agreement or settlement see
SPM21040
The employer can use whatever means of payment they prefer - usually the same way they pay the employee’s earnings. However, payment cannot be made as:
