Managing Maternity – Calculating Maternity Pay

Written by Andrew Johnson, Founder and CEO HRGuide - Thu 24th Oct 2024

Eligibility - Someone who's legally classed as an employee is eligible for statutory maternity pay if both of the following apply:

  • they've worked continuously for your organisation for at least 26 weeks, ending with the 15th week before the week the baby is due
  • their average weekly earnings are at least the Lower Earnings Limit (LEL) a week, up to the end of the 15th week before the baby is due

Someone who's legally classed as a worker might also be eligible for statutory maternity pay.

If an employer offers enhanced maternity pay, it must always be higher than statutory maternity pay.

The legal minimum for maternity pay - If your business does not offer enhanced maternity pay, it must pay statutory maternity pay which is as follows:

During the first 6 weeks of maternity leave

  • Pay them 90% of their average weekly earnings.

During the next 33 weeks of maternity leave

  • Pay whichever of these is lower:
    • The weekly statutory maternity weekly rate as published by the government (download our Statutory Payments Guide to see the latest rates). This rate is reviewed and typically revised in April of every year.
    • 90% of their average weekly earnings

Unless the contract says otherwise, you do not have to provide maternity pay after this period has ended.

Calculating statutory maternity pay

Use the maternity pay calculator on GOV.UK

If they're not entitled to statutory maternity pay

If the employee is not entitled to statutory maternity pay, you must give them the 'SMP1' form within 7 days of your decision. Download the ‘SMP1’ form from  www.hrguide.co.uk

Maternity Allowance - A pregnant employee or worker might be eligible for Maternity Allowance, if they cannot get enhanced maternity pay or statutory maternity pay. Maternity Allowance is paid by the government. It lasts for up to 39 weeks.

Keeping records - You must keep records of statutory maternity pay payments.

Repayment if someone does not return to work after maternity leave - If your employee does not return to work after maternity leave, they might have to repay maternity pay. This depends on the type of pay and what their contract says.

They do not return to work and have taken statutory maternity pay - The employee does not need to repay any statutory maternity pay they've taken.

They do not return to work and have taken enhanced maternity pay - The employee must repay some or all their enhanced maternity pay if the written terms of their employment say so. If this money does need to be repaid:

  • the written terms must be clear about the circumstances.
  • you should remind the employee informally about this repayment, for example in any regular meetings you have with them, before they start getting this money.