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Maternity Pay Formula:
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Statutory Maternity Pay (SMP) is a payment made to eligible employees in the UK during their maternity leave. It consists of two parts: 90% of average weekly earnings for the first 6 weeks, followed by 33 weeks at either the standard SMP rate or 90% of average weekly earnings (whichever is lower).
The calculator uses the SMP formula:
Where:
Explanation: The calculation ensures employees receive the higher amount for the first 6 weeks, followed by the statutory minimum or 90% of earnings (whichever is lower) for the remaining period.
Details: To qualify for SMP, you must have worked for your employer continuously for at least 26 weeks by the 15th week before your due date, earn at least the Lower Earnings Limit, and provide proper notification of your pregnancy and intended maternity leave.
Tips: Enter your average weekly earnings before tax and the current statutory SMP rate. Both values must be positive numbers in GBP.
Q1: When does SMP payment start?
A: SMP can start from the 11th week before your baby is due and continues for up to 39 weeks.
Q2: Is SMP taxable?
A: Yes, SMP is subject to income tax and National Insurance contributions, just like your regular salary.
Q3: Can I work while receiving SMP?
A: You can work for up to 10 Keeping in Touch (KIT) days during your maternity leave without affecting your SMP payments.
Q4: What if I'm not eligible for SMP?
A: You may be eligible for Maternity Allowance from the government if you don't qualify for SMP.
Q5: How is average weekly earnings calculated?
A: AWE is typically calculated based on your earnings in the 8 weeks (if paid weekly) or 2 months (if paid monthly) before the 15th week before your due date.