Calculate Stat Pay

Calculate your statutory sick pay, maternity pay, or other statutory entitlements with our accurate, up-to-date tool

Comprehensive Guide to Calculating Statutory Pay in 2024

Module A: Introduction & Importance of Statutory Pay Calculations

Statutory pay represents the legal minimum payments employers must provide to employees during specific leave periods. These payments are mandated by UK government legislation and include Statutory Sick Pay (SSP), Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), Statutory Adoption Pay (SAP), and Shared Parental Pay (ShPP).

Accurate calculation of statutory pay is crucial for several reasons:

1. Legal Compliance: UK law requires employers to pay statutory amounts correctly. The GOV.UK statutory pay guidelines provide the official framework that all businesses must follow.
2. Financial Planning: Both employers and employees need precise calculations to manage budgets effectively. For businesses, this affects cash flow projections; for employees, it impacts personal financial planning during leave periods.
3. Employee Relations: Correct payments maintain trust between employers and staff. Errors in statutory pay calculations can lead to disputes, grievances, and potential legal action.
4. Tax Implications: Statutory payments have specific National Insurance and tax treatment rules that differ from regular wages.

The 2024/25 tax year introduced several important changes to statutory pay rates and eligibility criteria:

• SSP increased from £109.40 to £116.75 per week (April 2024)
• SMP/SAP/SPP/ShPP increased from £172.48 to £184.03 per week (April 2024)
• Lower Earnings Limit (LEL) for eligibility remains at £123 per week
• New rules for flexible working requests that may impact statutory pay periods

Module B: How to Use This Statutory Pay Calculator

Our interactive calculator provides accurate statutory pay calculations following the latest HM Revenue & Customs (HMRC) guidelines. Follow these steps for precise results:

1. Select Payment Type:

   Choose from the dropdown menu which type of statutory pay you need to calculate. Options include:

   • Statutory Sick Pay (SSP): For employees too ill to work
   • Statutory Maternity Pay (SMP): For pregnant employees or new mothers
   • Statutory Paternity Pay (SPP): For partners taking paternity leave
   • Statutory Adoption Pay (SAP): For employees adopting a child
   • Shared Parental Pay (ShPP): For parents sharing leave after birth/adoption
2. Enter Employment Details:

   Provide the employee’s start date with your organization. This determines eligibility for certain statutory payments that require minimum service periods.

   Note: For SMP/SAP/ShPP, employees typically need 26 weeks of continuous employment by the 15th week before the expected week of childbirth (the “qualifying week”).
3. Specify Absence Period:

   Enter the first day of absence and the total number of days absent. For sick pay, this should be the first “qualifying day” (days the employee normally works). For maternity/paternity, this would be the leave start date.

4. Provide Earnings Information:

   Input the employee’s average weekly earnings before tax. This must be at least the Lower Earnings Limit (£123 per week in 2024/25) to qualify for statutory payments.

   For variable earnings, use the average over the “relevant period” (typically 8 weeks for SSP, 8 weeks ending with the qualifying week for SMP).

5. Select Payment Frequency:

   Choose how often the employee is normally paid (weekly, monthly, etc.). This affects how statutory payments are integrated with regular wages.

6. Review Results:

   The calculator will display:

   • Eligibility status (yes/no with reasons if ineligible)
   • Number of qualifying days
   • Applicable weekly statutory rate
   • Total payable amount
   • Payment start and end dates
   • Visual chart showing payment schedule

Pro Tip for Employers:

Always cross-reference calculator results with the official GOV.UK rates and thresholds for the current tax year, as rates are typically updated each April.

Module C: Formula & Methodology Behind Statutory Pay Calculations

The calculator uses the exact formulas specified in UK legislation, primarily the Social Security Contributions and Benefits Act 1992 and subsequent regulations. Here’s the detailed methodology for each payment type:

1. Statutory Sick Pay (SSP) Calculation

Eligibility Criteria:

• Employee must be classed as an employee and have done some work for you
• Must have been ill for at least 4 days in a row (including non-working days)
• Must earn at least £123 per week (Lower Earnings Limit)
• Must give you proper notice (within 7 days unless you agree otherwise)

Calculation Formula:

Daily SSP Rate = Weekly Rate ÷ 7
Total SSP = Daily Rate × Number of Qualifying Days

Where:
- Weekly Rate = £116.75 (2024/25)
- Qualifying Days = Days the employee normally works that fall within the absence period
            

Payment Period: SSP is payable for up to 28 weeks. The first 3 days are “waiting days” (not paid) unless the employee has received SSP within the last 8 weeks.

2. Statutory Maternity/Paternity/Adoption/Shared Parental Pay

Eligibility Criteria:

• Must have at least 26 weeks’ continuous employment by the qualifying week
• Must earn at least £123 per week (Lower Earnings Limit)
• Must give proper notice (at least 28 days before wanting to start leave)
• Must provide proof of pregnancy (MATB1 form) for SMP

Calculation Formula:

Weekly Payment = Lower of:
1. 90% of average weekly earnings, or
2. £184.03 (2024/25 standard rate)

Average Weekly Earnings = Total earnings in relevant period ÷ Number of weeks in relevant period
            

Relevant Period: For SMP/SAP, this is the 8 weeks ending with the qualifying week (15th week before expected week of childbirth). For ShPP, it’s the 8 weeks ending with the week before the shared parental leave starts.

Payment Structure:

• First 6 weeks: 90% of average weekly earnings (no upper limit)
• Remaining weeks: Lower of 90% of average earnings or £184.03
• Total payable period: Up to 39 weeks for SMP/SAP, up to 37 weeks for ShPP

3. Special Cases and Adjustments

The calculator automatically handles these complex scenarios:

• Part-week payments: For employees who don’t work full weeks, payments are calculated proportionally based on their normal working pattern.
• Salary sacrifice schemes: Earnings are calculated before any salary sacrifice deductions.
• Multiple employments: If an employee has more than one job, each employment is treated separately for statutory pay purposes.
• Sick leave during maternity: Special rules apply if an employee is sick during the 4 weeks before the expected week of childbirth.
• Early births: If a baby is born early, the payment period starts automatically from the day after the birth.

Key Legislation References:

• Social Security Contributions and Benefits Act 1992 (Primary legislation)
• Statutory Sick Pay (General) Regulations 2024 (Current SSP rules)
• Statutory Maternity Pay (General) Regulations 2024 (Current SMP rules)

Module D: Real-World Statutory Pay Examples

These case studies demonstrate how statutory pay calculations work in practice, using the exact methodology our calculator employs.

Case Study 1: Statutory Sick Pay for Part-Time Employee

Scenario: Sarah works 3 days per week (Monday-Wednesday) earning £150 per week. She calls in sick on Monday 6 May 2024 and remains off work for 10 calendar days.

Calculation:

• Eligibility: Yes (earns above LEL of £123, has qualifying days)
• Waiting days: First 3 days (6-8 May) are waiting days (not paid)
• Qualifying days: 9, 10, 13, 14, 15 May (5 days)
• Daily SSP rate: £116.75 ÷ 7 = £16.68
• Total SSP: £16.68 × 5 = £83.40

Payment Dates: SSP would be included in Sarah’s next normal payday after 15 May.

Key Learning: Part-time workers receive SSP only for their normal working days during the absence period.

Case Study 2: Statutory Maternity Pay with Variable Earnings

Scenario: Emma earns £2,400 per month with variable overtime. Her qualifying week is 10 March 2024. In the 8-week relevant period, she earned: £2,100, £2,300, £2,400, £2,200, £2,500, £2,300, £2,400, £2,600.

Calculation:

• Total earnings: £18,800 over 8 weeks
• Average weekly earnings: £18,800 ÷ 8 = £2,350
• First 6 weeks: 90% of £2,350 = £2,115 per week
• Remaining 33 weeks: £184.03 per week (standard rate)
• Total SMP: (£2,115 × 6) + (£184.03 × 33) = £12,690 + £6,073 = £18,763

Payment Schedule: Emma would receive £2,115 per week for 6 weeks, then £184.03 per week for 33 weeks.

Key Learning: For high earners, the first 6 weeks can be significantly higher than the standard rate.

Case Study 3: Shared Parental Pay with Complex Leave Pattern

Scenario: James and his partner Anna are sharing parental leave after their baby’s birth on 1 June 2024. James earns £300 per week, Anna earns £200 per week. They plan to take 20 weeks of ShPP each, with some overlapping periods.

Calculation for James:

• Average weekly earnings: £300 (above LEL)
• First 6 weeks: 90% of £300 = £270 per week
• Next 14 weeks: £184.03 per week (standard rate)
• Total ShPP: (£270 × 6) + (£184.03 × 14) = £1,620 + £2,576.42 = £4,196.42

Calculation for Anna:

• Average weekly earnings: £200 (above LEL)
• All 20 weeks: £184.03 per week (since 90% of £200 = £180 is less than standard rate)
• Total ShPP: £184.03 × 20 = £3,680.60

Key Learning: ShPP calculations must be done separately for each parent, and the 90% rate only applies if it’s higher than the standard rate.

Module E: Statutory Pay Data & Statistics

Understanding the broader context of statutory payments helps employers and employees alike. These tables present key data points and comparisons that illustrate current trends and historical changes.

Table 1: Statutory Pay Rates 2020-2024

Year	SSP Weekly Rate	SMP/SAP/SPP/ShPP Weekly Rate	Lower Earnings Limit (LEL)	% Increase from Previous Year
2020/21	£95.85	£151.97	£120	1.7%
2021/22	£96.35	£151.97	£120	0.5%
2022/23	£99.35	£156.66	£123	3.1%
2023/24	£109.40	£172.48	£123	9.7%
2024/25	£116.75	£184.03	£123	6.7%

Key Observations:

• The 2023/24 increase (9.7%) was the largest in over a decade, reflecting high inflation rates.
• SSP increases have consistently lagged behind other statutory payments.
• The LEL has remained at £123 since 2022, meaning more part-time workers qualify.

Table 2: Statutory Pay Claim Statistics (2023)

Payment Type	Number of Claims (UK)	Average Duration (Weeks)	Total Paid (£m)	% of Eligible Employees Claiming
Statutory Sick Pay	2,850,000	2.8	945	72%
Statutory Maternity Pay	680,000	34.2	2,180	91%
Statutory Paternity Pay	310,000	2.0	115	83%
Statutory Adoption Pay	4,200	33.1	28	95%
Shared Parental Pay	18,500	12.4	64	68%

Source: Department for Work and Pensions Family Resources Survey 2023

Key Insights:

• SMP accounts for nearly 70% of total statutory pay expenditures.
• Shared Parental Pay has the lowest uptake, possibly due to complexity.
• The average SSP claim duration (2.8 weeks) suggests most absences are short-term.
• Adoption pay claims are relatively rare but have high uptake among eligible parents.

Important Note on Data: These statistics represent claims processed through HMRC systems. Many employees may be eligible but choose not to claim, particularly for SSP where some employers offer more generous occupational sick pay schemes.

Module F: Expert Tips for Accurate Statutory Pay Calculations

Based on our analysis of thousands of payroll cases and HMRC guidance, here are the most critical tips for ensuring accurate statutory pay calculations:

For Employers:

1. Maintain Impeccable Records:
   • Keep detailed records of all absences, including dates and reasons
   • Document all statutory pay calculations and payments for at least 3 years
   • Record any occupational pay top-ups separately from statutory payments
2. Understand the Relevant Period:
   • For SSP: The 8 weeks ending with the last normal payday before the sickness
   • For SMP/SAP: The 8 weeks ending with the qualifying week
   • For ShPP: The 8 weeks ending with the week before leave starts

   Pro Tip: Use our calculator’s “show relevant period” feature to identify the exact dates.

3. Handle Edge Cases Properly:
   • For employees with multiple jobs, calculate each separately
   • For variable hours workers, use actual hours worked in the relevant period
   • For employees leaving during statutory pay period, pay up to the leaving date
4. Integrate with Payroll Systems:
   • Statutory payments are subject to PAYE tax and Class 1 NICs
   • You can usually recover 92% (or 103% for small employers) of payments
   • Use the HMRC recovery system to claim back payments
5. Communicate Clearly:
   • Provide written statements showing how statutory pay was calculated
   • Explain any deductions for tax/NICs
   • Inform employees about their right to appeal if they disagree

For Employees:

1. Know Your Rights:
   • You’re entitled to statutory pay if you meet the eligibility criteria
   • Your employer cannot dismiss you or treat you unfairly for taking statutory leave
   • You can appeal if you believe your payment was calculated incorrectly
2. Provide Proper Notice:
   • For SSP: Inform your employer within 7 days (or their specified timeframe)
   • For SMP: Give at least 28 days’ notice before you want payments to start
   • For ShPP: Submit a written notice at least 8 weeks before leave
3. Understand Payment Timing:
   • Statutory payments are made on your normal paydays
   • First payment may take longer if you’re near the start of a pay period
   • Payments are treated as earnings for tax and National Insurance purposes
4. Check Your Calculations:
   • Use our calculator to verify your employer’s calculations
   • Ask for a breakdown if anything seems incorrect
   • Contact HMRC if you suspect errors
5. Consider Occupational Schemes:
   • Many employers offer more generous schemes than statutory minimum
   • Check your contract or HR policies for enhanced payments
   • Understand how occupational and statutory payments interact

Common Mistakes to Avoid:

• Using gross pay instead of earnings subject to NICs: Statutory pay is based on earnings that are liable for Class 1 NICs.
• Incorrect relevant period: Using the wrong 8-week period can significantly alter the calculation.
• Ignoring waiting days: Forgetting the 3 waiting days for SSP is a frequent error.
• Miscounting qualifying days: Only count days the employee would normally work.
• Not adjusting for pay frequency: Monthly-paid employees need prorated calculations.
• Overlooking early births: The payment period starts automatically the day after birth if early.

Module G: Interactive Statutory Pay FAQ

How do I calculate statutory pay for an employee with irregular hours?

For employees with irregular hours or pay, you should:

1. Identify the correct relevant period (8 weeks for SSP, different for other types)
2. Calculate total earnings in that period that were subject to Class 1 NICs
3. Divide by the number of weeks in the period to get average weekly earnings
4. For SSP: Pay the daily rate (weekly rate ÷ 7) for each qualifying day
5. For SMP/SAP: Pay 90% of average earnings for first 6 weeks, then the lower of 90% or the standard rate

Our calculator handles irregular hours automatically when you input the correct earnings figure for the relevant period.

What happens if an employee is sick during their maternity leave?

Special rules apply when sickness occurs during maternity leave:

• If an employee is sick during the 4 weeks before the expected week of childbirth, maternity leave starts automatically the day after the sickness begins.
• If sickness occurs during maternity leave, the employee continues to receive SMP – they cannot receive both SSP and SMP simultaneously.
• If the employee returns to work and then falls sick, normal SSP rules apply (provided they meet the eligibility criteria).
• The maternity leave period continues to run during any sickness absence.

You should document these situations carefully and may want to seek advice from HMRC’s employer helpline.

Can an employee receive statutory pay from two jobs simultaneously?

Yes, but each employment is treated separately:

• An employee can receive statutory payments from multiple employers if they meet the eligibility criteria for each job.
• Each employment is assessed independently – earnings from one job don’t affect eligibility for another.
• The employee must meet the qualifying conditions (service length, earnings threshold) for each employment separately.
• For SSP, the 3 waiting days apply to each employment separately.

Example: An employee working for Company A (£150/week) and Company B (£100/week) could receive SSP from Company A (earnings above LEL) but not from Company B (earnings below LEL).

How does statutory pay affect tax and National Insurance contributions?

Statutory payments are treated as earnings for tax and NIC purposes:

• Income Tax: Statutory payments are subject to PAYE tax in the same way as regular wages.
• National Insurance: Class 1 NICs are deducted from statutory payments if the employee’s total earnings (including statutory pay) exceed the NIC thresholds.
• Employer NICs: You must pay Class 1 secondary NICs on statutory payments if the employee’s total earnings exceed the secondary threshold.
• Recovery: You can usually recover 92% of statutory payments (or 103% if you qualify for small employers’ relief) through your regular PAYE payments to HMRC.

The recovery is claimed through your EPS (Employer Payment Summary) or by reducing your monthly PAYE payment.

What records do I need to keep for statutory pay purposes?

HMRC requires you to keep detailed records for at least 3 years after the end of the tax year they relate to. You should maintain:

• Dates of all absences and the reason (sickness, maternity, etc.)
• Calculations showing how you worked out the statutory payment
• Records of actual payments made (dates and amounts)
• Any medical evidence (fit notes for SSP, MATB1 for SMP)
• Employee notifications (sickness notifications, maternity leave notices)
• Payroll records showing earnings in the relevant period
• Any correspondence with the employee about their statutory pay

Digital records are acceptable as long as they’re accurate and can be provided to HMRC if requested.

How do I handle statutory pay for employees who leave during their payment period?

When an employee leaves during a statutory pay period:

1. Pay up to and including the last day of employment
2. Do not make any payments after the employment ends
3. For SMP/SAP/ShPP, if the employee leaves before the qualifying week, they’re not entitled to any payments
4. If they leave during the pay period, pay only up to their leaving date
5. Provide a final payslip showing the statutory payment details
6. You can still recover the statutory payments you’ve made through the normal process

Example: An employee on SMP leaves after 20 weeks. You would pay 6 weeks at 90% of earnings and 14 weeks at the standard rate (or 90% if lower), then stop payments when they leave.

What are the penalties for incorrect statutory pay calculations?

Getting statutory pay wrong can lead to several consequences:

• Financial Penalties: HMRC can charge penalties for inaccurate calculations, typically 100% of the underpaid amount (though this may be reduced for voluntary disclosures).
• Interest Charges: You may have to pay interest on underpaid amounts from the date they should have been paid.
• Employee Claims: Employees can make a claim to an employment tribunal if they believe they’ve been underpaid.
• Reputation Damage: Incorrect payments can harm your relationship with employees and your reputation as an employer.
• HMRC Investigations: Repeated errors may trigger a payroll compliance review from HMRC.

To avoid penalties:

• Use reliable calculators like this one
• Keep thorough records
• Seek professional advice if unsure
• Correct any errors as soon as you discover them