Maternity pay is crucial for supporting new mothers during one of the most significant life transitions—childbirth and early parenting. It provides financial stability during maternity leave, allowing mothers to recover, and adapt to their new responsibilities without the added stress of income loss.
For employers, offering maternity pay—especially beyond statutory requirements—demonstrates a commitment to employee wellbeing and helps attract and retain top talent. It also fosters a positive workplace culture, promotes gender equality, and ensures HR compliance with legal obligations in the UK. Overall, maternity pay plays a vital role in both personal and professional sustainability.
Understanding maternity pay can feel overwhelming—especially when you’re already preparing for one of life’s biggest changes. Whether you’re an employee planning your leave or an employer looking to support your team, knowing how to calculate maternity pay accurately is essential.
In the UK, maternity pay is structured but layered. There’s Statutory Maternity Pay (SMP), but some employers offer more generous packages called Contractual or Enhanced Maternity Pay. Calculating the right amount—and ensuring it’s paid on time—requires understanding eligibility rules, average earnings, and critical timelines.
This blog post guide attempts to break it all down into simple terms so you can feel confident about managing maternity pay—whether you’re receiving it or administering it.
What Is Maternity Pay?
Maternity pay is financial support provided to an employee when they take time off to have a baby. In the UK, this is mostly in the form of Statutory Maternity Pay (SMP), which is regulated by the government.
Some employers also offer Enhanced Maternity Pay as part of their company policies, which goes beyond the statutory minimum.
Who Is Eligible for Statutory Maternity Pay (SMP)?
Not everyone qualifies for SMP, so eligibility must be checked first.
To qualify, an employee must:
- Be employed by the same employer continuously for at least 26 weeks by the end of the 15th week before the expected week of childbirth (EWC).
- Earn at least £123 a week (gross) on average in the 8 weeks (or 2 months) leading up to the 15th week before the baby is due.
- Provide correct notice (usually at least 15 weeks before the due date) and proof of pregnancy (typically a MATB1 form).
If an employee doesn’t qualify for SMP, they might be eligible for Maternity Allowance instead, which is paid by the government.
How Long Is Statutory Maternity Pay Paid?
Statutory Maternity Pay lasts for up to 39 weeks, paid in two different phases:
- First 6 weeks – 90% of the employee’s average weekly earnings (before tax).
- Remaining 33 weeks – £184.03 per week (2024/25 rate) or 90% of their average weekly earnings (whichever is lower).
Maternity leave itself can last up to 52 weeks, but only the first 39 weeks are paid under SMP unless the employer offers more.
Step-by-Step: How to Calculate Maternity Pay
Step 1: Identify the ‘Qualifying Week’
The 15th week before the Expected Week of Childbirth (EWC) is known as the qualifying week. From this point, you’ll work backward to assess earnings and length of service.
You can count backwards using a calendar or use the UK Government’s Maternity Pay calculator for a quick check.
Step 2: Calculate the Average Weekly Earnings (AWE)
To determine maternity pay, you’ll need to calculate the employee’s Average Weekly Earnings (AWE) over an 8-week period (for weekly-paid employees) or 2-month period (for monthly-paid employees) that ends with the last normal payday before the qualifying week.
This includes:
- Salary or wages
- Bonuses and commissions (if paid in that period)
- Statutory sick pay
- Overtime (if guaranteed)
Formula:
AWE = Total gross earnings over the 8-week period ÷ Number of weeks
Example:
If an employee earned £2,400 in total over the relevant 8 weeks, then,
£2,400 ÷ 8 = £300 AWE
Step 3: Apply the SMP Calculation
Using the AWE:
Weeks 1–6: 90% of AWE
→ 90% of £300 = £270/week
Weeks 7–39: The lower of £184.03 or 90% of AWE
→ 90% of £300 = £270 > £184.03 → So SMP = £184.03/week
So, the total SMP is:
First 6 weeks: £270 x 6 = £1,620
Remaining 33 weeks: £184.03 x 33 = £6,073
Total Statutory Maternity Pay: £1,620 + £6,073 = £7,693
Note: SMP is subject to tax and National Insurance deductions.
What If the Employer Offers Enhanced Maternity Pay?
Some employers offer Enhanced or Contractual Maternity Pay, which goes beyond SMP. This can include:
- Full pay for a set number of weeks
- Half pay combined with SMP
- Additional top-ups
Each company’s policy will differ. It’s vital for employees to check their employment contract or staff handbook, and for employers to clearly document their maternity policies.
Employers who offer enhanced pay still claim back the statutory portion (SMP) from HMRC, which helps reduce costs.
Important Points Employers Need to Know
If you’re an employer, here are your responsibilities:
- Keep accurate payroll records
- Calculate SMP correctly based on AWE
- Provide written confirmation of maternity pay and leave
- Submit EPS (Employer Payment Summary) to HMRC to reclaim SMP
- Maintain communication with the employee about return dates, KIT days, and flexible work options
You can reclaim:
- 92% of SMP paid
- Or 103% if you’re a small employer (paying less than £45,000 in Class 1 National Insurance contributions in the previous tax year)
What If the Employee Doesn’t Qualify for SMP?
If the employee doesn’t meet eligibility for SMP:
- You must issue a SMP1 form explaining the reason.
- The employee can apply for Maternity Allowance through Jobcentre Plus.
Maternity Allowance is up to £184.03/week (same as lower SMP rate) and is paid for up to 39 weeks.
Frequently Asked Questions (FAQs)
Can I work during maternity leave?
You can work up to 10 Keeping In Touch (KIT) days without affecting your maternity pay. These are optional and must be agreed upon with your employer.
Is maternity pay the same for part-time employees?
Yes, as long as you meet the eligibility criteria, you’re entitled to SMP based on your actual average weekly earnings.
Do I have to return to work to keep my maternity pay?
For SMP, no return is required. However, if your employer offers enhanced pay, they may ask for repayment if you don’t return—check your contract.
Key Takeaways
- Maternity Pay in the UK is structured around Statutory Maternity Pay (SMP), with possible enhancements from employers.
- SMP consists of 90% of earnings for 6 weeks, then £184.03/week (or 90% of earnings if lower) for 33 weeks.
- Employers can reclaim most, if not all, of SMP from HMRC.
- Proper calculation, timely communication, and clear policies benefit both employers and employees.
To Conclude
Navigating maternity pay doesn’t need to be stressful. Whether you’re expecting a baby or helping someone else through that journey, understanding the rules and running the numbers correctly ensures a smoother experience for everyone.
Taking the time to calculate maternity pay accurately is more than just a legal requirement—it’s a sign of an equitable workplace culture, respect, care, and support.
Need Help Navigating Maternity Pay or HR Compliance?
At ClearPath Solutions, we help UK businesses and employees confidently manage maternity leave, pay calculations, policies, and communication. Whether you’re a new parent or an employer setting up a maternity policy for the first time, we’re here to guide you.
Contact Us today for personalised support, templates, and expert advice on maternity and parental leave compliance.
