Statutory Payments Explained: Maternity, Paternity & Sick Pay

Understanding how to manage Statutory Payments — including Maternity Pay, Paternity Pay, and Sick Pay — is essential for UK employers, especially small and medium-sized businesses without dedicated HR teams.

From calculating Statutory Payment entitlements and staying on top of the latest 2025/26 tax year rates to keeping compliant records, handling statutory pay can become complex fast.

This guide offers straightforward explanations and practical advice on managing statutory payments — including Maternity, Paternity, and Sick Pay — helping UK employers stay compliant and support their teams effectively.

Statutory Maternity Pay (SMP)

Who qualifies:
To be eligible for SMP, an employee must:

• Have been continuously employed by you for at least 26 weeks up to the 15th week before the baby is due
• Earn at least £125 a week (the Lower Earnings Limit for 2025/26)
• Provide you with the correct notice and medical proof (usually a MATB1 form)

If an employee doesn’t qualify, you must provide form SMP1 so they can apply for Maternity Allowance instead.

What to pay:
SMP is paid for up to 39 weeks and includes:

• 6 weeks at 90% of the employee’s average weekly earnings (before tax)
• 33 weeks at £187.18 per week, or 90% of earnings if lower (2025/26 rate)

The remaining 13 weeks of maternity leave (if taken) are unpaid by default.

What employers need to do:

• Pay SMP through your payroll, deducting tax and NI as usual
• Reclaim 92% of SMP from HMRC – or 108.5% if you qualify for Small Employers’ Relief
• Keep records of payments and leave dates for at least 3 years

Don’t forget: SMP is still payable even if the employee leaves your business before or during maternity leave. Maternity rights also include the right to return to work and accrue holiday during leave.

Statutory Paternity Pay (SPP)

Who qualifies:
To be eligible for SPP, an employee must:

• Have worked for you continuously for at least 26 weeks by the 15th week before the due date
• Earn at least £125 a week (2025/26 Lower Earnings Limit)
• Be taking time off to support the mother or care for the child
• Provide proper notice (usually 15 weeks before the due date) and complete a self-certification form (SC3)

If an employee doesn’t qualify, you must issue form SPP1 within 28 days.

What to pay:
Employees can take up to 2 weeks of paternity leave, either together or as separate one-week blocks. Leave must be taken within 12 months of the birth.

SPP is paid at:

• £187.18 per week, or
• 90% of average weekly earnings if lower

This is taxable and subject to NI deductions.

What employers need to do:

• Confirm leave arrangements in writing
• Pay SPP via payroll on normal payday
• Reclaim 92%, or 108.5% if you qualify for Small Employers’ Relief
• Keep records of payments and dates

Don’t forget: Employees are legally protected while on paternity leave. It’s good practice to handle the process supportively and ensure leave requests are managed in line with your internal policy.

Statutory Sick Pay (SSP)

Who qualifies:
To receive SSP, an employee must:

• Be off sick for at least 4 consecutive days (including non-working days)
• Earn at least £125 a week (2025/26 Lower Earnings Limit)
• Notify you of their absence in line with your sickness policy (or within 7 days if none exists)

There’s no minimum length of service required, and part-time or casual workers may qualify. If an employee isn’t eligible, you should issue form SSP1 explaining why.

What to pay:
SSP is paid at a flat rate of £118.75 per week (2025/26) for up to 28 weeks.

• It starts after 3 ‘waiting days’ (the first 3 qualifying days of sickness)
• Payment continues only on the employee’s normal working days
• SSP is subject to tax and NI like regular pay

What employers need to do:

• Pay SSP through your usual payroll system
• Keep clear records of sickness dates and payments
• Request a fit note if the absence lasts more than 7 days
• Note: SSP is not reimbursed by HMRC – the cost is fully covered by the employer

Tip: Consider putting a clear sickness absence policy in place to guide staff on reporting, documentation, and expectations.

What to Do Next

Understanding your responsibilities around statutory payments helps you stay compliant, support your employees, and avoid costly mistakes. With updated rates and rules now in place for the 2025/26 tax year, it’s important to keep your payroll processes accurate and up to date.

Payment Type	Weekly Rate	Max Duration	Reimbursable?	Employee Eligibility
SMP	£187.18 or 90%	39 weeks	Yes – up to 108.5%	26 weeks’ service, £125+/week
SPP	£187.18 or 90%	2 weeks	Yes – up to 108.5%	26 weeks’ service, £125+/week
SSP	£118.75	Up to 28 weeks	No	£125+/week, 4+ sick days

Need help applying the 2025/26 statutory pay rules or streamlining your payroll? Get in touch with our experts — we’ll ensure you stay compliant and take the stress out of statutory payments.