What you can reclaim

As an employer, you can usually reclaim 92% of employees’ Statutory Maternity (SMP), Paternity and Adoption Pay.

You can reclaim 103% if your business qualifies for Small Employers’ Relief. You get this if you paid less than £45,000 in Class 1 National Insurance in the last complete tax year before the qualifying or matching week (or the official notification for overseas adoptions).

Statutory Maternity Leave

Eligible employees can take up to 52 weeks’ maternity leave. The first 26 weeks is known as ‘Ordinary Maternity Leave’, the last 26 weeks as ‘Additional Maternity Leave’.

The earliest leave can be taken is 11 weeks before the expected week of childbirth. Employees must take at least 2 weeks after the birth (or 4 weeks if they’re a factory worker).

Statutory Maternity Pay (SMP)

SMP for eligible employees can be paid for up to 39 weeks, usually as follows:

  • the first 6 weeks – 90% of their average weekly earnings (AWE) before tax
  • the remaining 33 weeks – £138.18 or 90% of their AWE (whichever is lower)

Tax and National Insurance need to be deducted. Most payroll software packages cope with these transactions.

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