Statutory Maternity Pay (SMP)
Statutory Maternity Pay is a crucial benefit that supports pregnant employees in the UK during their maternity leave. By understanding the eligibility criteria, payment amounts, and application process, expecting mothers can ensure they receive the financial support they need during this important time.
What is Statutory Maternity Pay?
Statutory Maternity Pay (SMP) is a government-mandated benefit in the United Kingdom designed to provide financial support to pregnant employees during their maternity leave. It ensures that expecting mothers receive a portion of their usual income while they take time off work to care for their newborn.
How Does Statutory Maternity Pay Work?
SMP is paid to eligible employees for up to 39 weeks, allowing them to take time off work both before and after the birth of their child. It provides financial support during this period, ensuring that employees do not face significant financial hardship while on maternity leave.
Who Can Claim Statutory Maternity Pay?
To qualify for SMP, you must meet the following criteria:
Employment Status: You must be an employee. Self-employed individuals are not eligible for SMP but may qualify for Maternity Allowance.
Earnings: You must earn on average at least £123 per week (before tax).
Length of Employment: You must have been continuously employed by the same employer for at least 26 weeks up to the 'qualifying week' (the 15th week before the expected week of childbirth).
Notification: You must inform your employer at least 15 weeks before your baby is due, providing the correct notice and proof of pregnancy (usually a MAT B1 form from your doctor or midwife).
How Much is Statutory Maternity Pay?
SMP is paid for up to 39 weeks and is calculated as follows:
First 6 weeks: 90% of your average weekly earnings (AWE) before tax.
Remaining 33 weeks: £172.48 per week (or 90% of your AWE, whichever is lower).
Who Pays Statutory Maternity Pay?
Your employer is responsible for paying SMP. The payments are typically made in the same way as your normal wages, whether that is weekly or monthly, and are subject to tax and National Insurance contributions.
Do You Pay Tax on Statutory Maternity Pay?
SMP is subject to tax and National Insurance contributions, just like your regular wages. Your employer will deduct these contributions before making the payment to you.
How Long Do You Get Statutory Maternity Pay For?
You can receive SMP for up to 39 weeks. The payment period starts when you take your maternity leave, which can be as early as 11 weeks before your due date. It continues for up to 39 weeks, ending no later than the week following the birth of your baby.
How Do I Apply for Statutory Maternity Pay?
To apply for SMP, follow these steps:
Inform Your Employer: Notify your employer at least 15 weeks before your baby is due. Provide the expected date of childbirth and your intention to take maternity leave.
Provide Proof of Pregnancy: Give your employer a copy of your MAT B1 form, which you will receive from your doctor or midwife after your 20th week of pregnancy.
Confirm Maternity Leave Dates: Agree on the start and end dates of your maternity leave with your employer.
Your employer will then assess your eligibility and start paying SMP in the same way as your regular wages.
Can Employers Claim Back Statutory Maternity Pay?
Employers can reclaim some or all of the SMP they pay to employees. The amount they can reclaim depends on their total National Insurance contributions:
Small Employers' Relief (SER): Employers who qualify for SER can reclaim 103% of the SMP they pay. To qualify, their total National Insurance contributions must be below a certain threshold.
Standard Rate: Employers who do not qualify for SER can reclaim 92% of the SMP they pay.
Employers reclaim SMP by deducting it from their monthly PAYE payments to HM Revenue and Customs (HMRC).
Can you Get Statutory Maternity Pay if Self Employed?
Self-employed individuals in the UK are not eligible for Statutory Maternity Pay (SMP) as SMP is a benefit provided by employers to their employees. However, self-employed mothers can claim Maternity Allowance instead, which provides financial support for up to 39 weeks. Maternity Allowance is designed to offer similar assistance to those who do not qualify for SMP, ensuring that self-employed women still receive support during their maternity leave. To qualify for Maternity Allowance, you must meet certain criteria related to your work and earnings history.
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