How Maternity Pay Is Calculated

Calculate your Statutory Maternity Pay (SMP) and understand how your earnings affect your entitlement. This tool follows official UK government guidelines.

Complete Guide: How Maternity Pay is Calculated in the UK (2024)

Understanding how maternity pay is calculated can help you plan your finances during one of the most important times in your life. This comprehensive guide explains everything you need to know about Statutory Maternity Pay (SMP), eligibility criteria, calculation methods, and how to maximize your entitlements.

What is Statutory Maternity Pay (SMP)?

Statutory Maternity Pay is the legal minimum payment that eligible employees receive from their employer when they take time off work to have a baby. SMP is designed to provide financial support during the maternity leave period, which can last up to 52 weeks.

The current SMP rates (as of April 2024) are:

• 90% of your average weekly earnings (before tax) for the first 6 weeks
• £172.48 or 90% of your average weekly earnings (whichever is lower) for the next 33 weeks
• No payment for the remaining 13 weeks (though you’re still entitled to take this leave)

Eligibility Criteria for SMP

To qualify for Statutory Maternity Pay, you must meet all of the following conditions:

1. Employment status: You must be an employee (not self-employed or a worker)
2. Continuous employment: You must have worked for your employer continuously for at least 26 weeks up to the ‘qualifying week’ (the 15th week before your expected week of childbirth)
3. Earnings threshold: Your average weekly earnings must be at least £123 (the lower earnings limit for National Insurance contributions)
4. Notice requirements: You must give your employer the correct notice (at least 28 days before you want your SMP to start)
5. Proof of pregnancy: You must provide proof of your pregnancy (usually a MATB1 certificate from your doctor or midwife)

Did You Know?

You can start your maternity leave as early as 11 weeks before your due date, but no later than the day after your baby is born.

Important Deadline

You must claim SMP within 3 months of your baby’s birth, otherwise you might lose your entitlement.

How SMP is Calculated: Step-by-Step

1. Determine Your Qualifying Week

Your qualifying week is the 15th week before your expected week of childbirth (EWC). For example, if your due date is 15 December 2024, your EWC is 8-14 December, and your qualifying week would be 17-23 June 2024.

2. Calculate Your Average Weekly Earnings

Your employer will look at your earnings during the ‘relevant period’ – usually the 8 weeks leading up to and including your qualifying week. They’ll calculate your average weekly earnings during this period.

If your pay varies (for example, if you’re paid weekly or work irregular hours), your employer should use your actual earnings during this period. If you’re paid monthly, they’ll use your earnings from the 2 months that include the relevant period.

3. Check if You Meet the Lower Earnings Limit

For the 2024/25 tax year, you must earn at least £123 per week on average to qualify for SMP. If you earn less than this, you won’t be eligible for SMP but might qualify for Maternity Allowance instead.

4. Calculate Your SMP Entitlement

If you’re eligible, your SMP will be calculated as follows:

• First 6 weeks: 90% of your average weekly earnings (with no upper limit)
• Next 33 weeks: The lower of either £172.48 per week or 90% of your average weekly earnings

For example, if your average weekly earnings are £600:

• First 6 weeks: £540 per week (90% of £600)
• Next 33 weeks: £172.48 per week (the standard rate, as it’s lower than 90% of £600)

What If You’re Not Eligible for SMP?

If you don’t qualify for SMP, you might be eligible for Maternity Allowance instead. This is paid by the government rather than your employer. To qualify for Maternity Allowance, you must:

• Be pregnant or have recently given birth
• Have worked for at least 26 weeks in the 66 weeks before your due date
• Have earned at least £30 a week in at least 13 of those weeks

The standard rate of Maternity Allowance is £172.48 per week or 90% of your average weekly earnings (whichever is less) for up to 39 weeks.

How Maternity Pay Affects Your Tax and National Insurance

SMP is treated as earnings, so it’s subject to:

• Income Tax (if your total income is above your Personal Allowance)
• National Insurance contributions (if your SMP takes your weekly earnings above the Lower Earnings Limit)

Your employer will deduct any tax and National Insurance due from your SMP payments before paying you, in the same way they do with your normal wages.

Maternity Pay Comparison: SMP vs Maternity Allowance vs Contractual Maternity Pay

Feature	Statutory Maternity Pay (SMP)	Maternity Allowance	Contractual Maternity Pay
Who pays it?	Your employer	Government (Jobcentre Plus)	Your employer
Eligibility	26 weeks continuous employment, earn ≥£123/week	26 weeks employment in last 66 weeks, earn ≥£30/week in 13 weeks	Depends on your employment contract
Payment rate (first 6 weeks)	90% of average weekly earnings	£172.48 or 90% of average earnings (whichever is less)	Varies (often full pay)
Payment rate (remaining weeks)	£172.48 or 90% of average earnings	£172.48 or 90% of average earnings	Varies (often half pay or SMP rate)
Duration	Up to 39 weeks	Up to 39 weeks	Varies (often 6-12 months)
Taxable?	Yes	Yes	Yes

Common Questions About Maternity Pay

Can I get SMP if I’m self-employed?

No, SMP is only available to employees. If you’re self-employed, you might be eligible for Maternity Allowance instead. The eligibility criteria are slightly different, so it’s worth checking the official government guidance.

What if I have more than one job?

If you have more than one job, you might be able to get SMP from each employer, as long as you meet the eligibility criteria for each job separately. However, you can’t get more than 39 weeks of SMP in total across all your jobs.

Can I work while receiving SMP?

You can work for up to 10 ‘keeping in touch’ (KIT) days during your maternity leave without losing your SMP. These days can be used for training, meetings, or other work-related activities. Any payment you receive for KIT days will be in addition to your SMP.

What if my baby is born early or late?

If your baby is born early, your SMP will start the day after the birth. If your baby is born late, your SMP will start on the date you chose (as long as it’s not earlier than 11 weeks before your due date). The total amount of SMP you receive won’t be affected by when your baby is born.

How to Claim Statutory Maternity Pay

To claim SMP, you should:

1. Tell your employer you’re pregnant by the 15th week before your due date
2. Give your employer your MATB1 certificate (usually available from your midwife or doctor after your 20-week scan)
3. Tell your employer when you want to start your maternity leave (you must give at least 28 days’ notice)
4. Your employer should then confirm your SMP entitlement in writing

Your employer might have their own form for you to complete, or they might just need this information in writing (such as in an email).

Additional Financial Support During Maternity Leave

In addition to SMP or Maternity Allowance, you might be eligible for other financial support:

• Sure Start Maternity Grant: A one-off payment of £500 if this is your first child or you’re having a multiple birth (twins, triplets etc.) and you’re on certain benefits
• Healthy Start vouchers: If you’re on benefits or pregnant and under 18, you might qualify for vouchers to spend on milk, fruit and vegetables
• Universal Credit: You might be able to claim this if you’re on a low income
• Child Benefit: You can claim this after your baby is born (£25.60 per week for your first child)
• Tax-Free Childcare: Up to £2,000 per year per child to help with childcare costs

Planning Your Finances During Maternity Leave

Having a baby is expensive, and your income is likely to drop during maternity leave. Here are some tips to help you plan:

• Create a budget based on your expected SMP payments
• Check if you’re eligible for any additional benefits or grants
• Consider whether you can save money before your baby arrives
• Think about when you want to return to work and whether you’ll need childcare
• Check if your employer offers any additional maternity benefits

It’s also worth checking if your employer offers any enhanced maternity pay as part of your employment package. Some employers offer full pay for a certain period, followed by SMP for the remaining weeks.

Returning to Work After Maternity Leave

You have the right to return to the same job after ordinary maternity leave (the first 26 weeks). After additional maternity leave (weeks 27-52), you have the right to return to the same job, or if that’s not possible, to a similar job with the same or better terms and conditions.

If you decide not to return to work, you should give your employer the normal notice period as stated in your contract. However, you don’t have to repay your SMP if you don’t return to work, unless your contract specifically states that you do (which is rare).

Useful Resources

For more information about maternity pay and your rights, you can visit these authoritative sources:

• GOV.UK: Maternity Pay and Leave – Official government information about SMP
• Citizens Advice: Pregnancy and Maternity Leave – Practical advice about your rights
• Maternity Action – Charity providing advice and support on maternity rights