UK Maternity Leave and Pay: Essential Guide for the 2025/2026 Tax Year
For businesses and expecting parents in the UK, navigating the rules around maternity leave and pay is crucial. The statutory requirements set a minimum standard, but for a busy business owner, keeping up with the annual rate changes and calculating eligibility can be a significant administrative burden.
1. Statutory Maternity Leave (SML)
Every pregnant employee, regardless of how long they have worked for an employer or how many hours they work, is entitled to 52 weeks of Statutory Maternity Leave.
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Ordinary Maternity Leave (OML): The first 26 weeks.
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Additional Maternity Leave (AML): The second 26 weeks.
The earliest leave can start is 11 weeks before the expected week of childbirth (EWC). However, if the employee is absent from work for a pregnancy-related reason in the four weeks before the week the baby is due, maternity leave will start automatically.
Compulsory Leave: Following the birth, an employee must take at least two weeks of leave (or four weeks if they work in a factory).
2. Statutory Maternity Pay (SMP) Rates for 2025/2026
SMP is paid for up to 39 weeks. The pay is structured in two parts:
| Period | Rate of Pay (2025/2026) |
| First 6 Weeks | 90% of the employee’s Average Weekly Earnings (AWE) – with no upper limit. |
| Next 33 Weeks | The lower of the following two amounts: £187.18 per week or 90% of the employee’s AWE. |
Note: The standard rate for the final 33 weeks of SMP has increased to £187.18 per week from the start of the 2025/2026 tax year (April 2025).
SMP is treated like regular wages, meaning Income Tax and National Insurance contributions must be deducted.
3. Employee Eligibility for SMP
For an employee to qualify for Statutory Maternity Pay, they must meet the following three criteria by the end of the Qualifying Week (the 15th week before the week the baby is due):
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Continuous Employment: They must have worked for you continuously for at least 26 weeks.
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Minimum Earnings: Their Average Weekly Earnings (AWE) must be at least the Lower Earnings Limit (LEL) for National Insurance purposes.
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LEL for 2025/2026: £125 per week.
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Notice and Proof: They must give the correct notice and provide medical evidence of the expected week of childbirth (usually a MATB1 certificate).
4. Key Responsibilities for Employers
Compliance is key. As an employer, you are responsible for:
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Accurate Calculation: Calculating the employee’s Average Weekly Earnings to determine if they qualify for SMP and to work out the pay rate for the first 6 weeks.
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Paying SMP: Paying SMP on their normal payday, deducting Tax and National Insurance.
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Record Keeping: Maintaining accurate records of all payments and submissions.
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HMRC Recovery: Claiming back some or all of the SMP paid from HMRC. Small employers (those with Class 1 National Insurance contributions of $\textsterling45,000$ or less in the previous tax year) can recover 108.5% of the SMP paid (known as Small Employers’ Relief). All other employers can recover 92%.
What if an Employee Doesn’t Qualify for SMP?
If an employee does not qualify for SMP (most commonly because their average earnings are below the LEL), you must issue them with an SMP1 form within seven days of making the decision. This form explains why they are not eligible and allows them to apply for Maternity Allowance from the Department for Work and Pensions (DWP) instead.
Need Help with Maternity Pay Calculations?
The ever-changing statutory rates and the complex calculations for eligibility and average earnings can divert valuable time and resources away from your core business.
At Zaypay, we specialise in taking the headache out of UK payroll compliance, ensuring your employees are paid correctly and on time, every time, in line with the latest HMRC rules for 2025/2026.
Focus on running your business—we’ll handle the payroll.
