When an employee is expecting a child or adopting, employers have important legal responsibilities.
Understanding statutory payments helps ensure employees receive the correct entitlement while keeping your payroll compliant with HMRC requirements.
Statutory Maternity Pay
Eligible employees may qualify for Statutory Maternity Pay (SMP).
To qualify, employees must meet the eligibility conditions set by HMRC, including continuous employment and minimum earnings requirements.
Statutory Maternity Pay is paid for up to 39 weeks, with different payment rates applying during the maternity pay period.
Statutory Paternity Pay
Eligible employees may be entitled to Statutory Paternity Pay (SPP) when they take leave following the birth or adoption of a child.
The employee must satisfy the qualifying conditions, including employment, notice and earnings requirements.
The amount payable is set by the government and can change each tax year.
Statutory Adoption Pay
Employees adopting a child may qualify for Statutory Adoption Pay (SAP).
The qualifying rules are similar to Statutory Maternity Pay, including employment and earnings requirements.
Eligible employees can receive Statutory Adoption Pay for up to 39 weeks.
Can employers recover these payments?
Yes.
Most employers can recover a large proportion of statutory payments from HMRC through their payroll.
Businesses that qualify as small employers may be able to recover an even higher percentage through Small Employers' Relief.
Keeping payroll accurate
Family leave payments involve strict qualifying dates, earnings tests and payment calculations.
Payroll software will usually calculate payments automatically, but employers remain responsible for ensuring the correct information has been entered.
It is also important to retain the required employee declarations and supporting records.
Where can I find the official guidance?
Start with these official pages:
- Statutory pay and leave collection
- Statutory Maternity Pay and Leave: employer guide
- Statutory Paternity Pay and Leave: employer guide
- Adoption pay and leave
- Recover statutory payments
Need some help?
Family leave can be one of the more detailed areas of payroll, particularly where eligibility or qualifying dates are unclear.
If you would like help checking statutory payments or handling payroll for your employees, get in touch with us.