Definition
The minimum payment that qualifying employees receive during maternity leave, paid by the employer for up to 39 weeks. The first six weeks are paid at 90% of average weekly earnings, and the remaining 33 weeks at the lower of the flat rate or 90% of average earnings.
UK Context
SMP is governed by the Social Security Contributions and Benefits Act 1992. To qualify, employees must have 26 weeks of continuous service by the 15th week before the expected week of childbirth and earn at least the Lower Earnings Limit. Employers can reclaim 92% of SMP paid (or 103% for small employers).
Best Practices
- Calculate SMP promptly using the correct average earnings period and pay it through normal payroll
- Inform employees about SMP entitlement early in their pregnancy and explain any enhanced pay offered
- Reclaim SMP through your payroll software or HMRC's advance funding scheme if cash flow is a concern
Frequently Asked Questions
How much is SMP?
SMP is paid for 39 weeks: the first 6 weeks at 90% of average weekly earnings with no cap, then the remaining 33 weeks at the lower of 187.18 pounds per week or 90% of average weekly earnings. The flat rate is reviewed annually.
Can employers reclaim SMP?
Yes, most employers can reclaim 92% of SMP through reductions in PAYE payments to HMRC. Small employers whose total NI liability was 45,000 pounds or less in the previous tax year can reclaim 100% plus an additional 3% compensation.