Statutory Maternity Leave and Pay are key entitlements that ensure employees are supported during one of the most important times in their lives—becoming a parent. As an employer, it’s crucial to understand and process these entitlements accurately to comply with UK regulations and provide clarity to employees.
Statutory Maternity Leave
Employees in the UK are entitled to 52 weeks of maternity leave, regardless of their length of service. This leave is divided into two parts:
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- Ordinary Maternity Leave (OML) – The first 26 weeks.
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- Additional Maternity Leave (AML) – The next 26 weeks.
Key rules for Statutory Maternity Leave:
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- Compulsory Leave: Employees must take at least 2 weeks of leave (or 4 weeks for factory workers) following the baby’s birth.
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- Employees can choose when to start their maternity leave, up to 11 weeks before the expected week of childbirth.
Statutory Maternity Pay (SMP)
Eligible employees may also receive Statutory Maternity Pay (SMP) for up to 39 weeks, with the following breakdown:
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- First 6 weeks: Paid at 90% of their average weekly earnings (AWE) before tax.
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- Remaining 33 weeks: Paid at the lower of £184.03 per week (2024/2025) or 90% of their AWE.
Eligibility Criteria for SMP
To qualify for SMP, an employee must:
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- Earn at least £123 per week (2024 rate) on average.
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- Have worked for the employer for at least 26 weeks up to the 15th week before the baby is due.
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- Provide at least 28 days’ notice of their leave and submit a MATB1 form (provided by their doctor or midwife).
Impact on Payroll
Employers can reclaim a significant portion of SMP through HMRC:
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- 92% of SMP for most employers.
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- 103% of SMP for small employers who qualify for the Small Employers’ Relief.
Key Points for Employers
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- Communication: Employers should clearly inform employees about their rights and ensure timely submission of required documentation.
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- Job Protection: Employees are entitled to return to their job after maternity leave, or a suitable alternative if their role no longer exists.
Understanding and administering Statutory Maternity Leave and Pay correctly helps businesses maintain compliance and foster employee trust during a critical life event.
