How to Calculate Statutory Maternity Pay
Statutory Maternity Pay runs for up to 39 weeks and is paid at 90% of average weekly earnings for the first 6 weeks, then at the lower of £194.32 a week or 90% of average weekly earnings for the remaining 33 weeks of the 2026-27 tax year [1]. Getting that calculation right matters, because most employers can reclaim the majority of it from HMRC, and small employers can reclaim more than they pay out [2].
The arithmetic is not complicated, but it rests on two figures that are easy to get wrong: the relevant period used to work out average weekly earnings, and the qualifying week that fixes eligibility. An error in either feeds through to every payslip across the maternity pay period.
This guide sets out the calculation in the order a payroll administrator works through it: confirming eligibility, fixing the relevant period, deriving average weekly earnings, applying the two-tier rate, and then calculating what the employer can recover.
Key takeaways
- Statutory Maternity Pay is 90% of average weekly earnings for 6 weeks, then the lower of £194.32 or 90% of average weekly earnings for 33 weeks.
- Average weekly earnings are measured over the 8-week relevant period ending with the last payday before the end of the qualifying week.
- The qualifying week is the 15th week before the week the baby is due, and the employee must have 26 weeks of continuous service into it.
- The earnings test threshold is the Lower Earnings Limit of £129 a week for the 2026-27 tax year.
- Standard employers recover 92% of the Statutory Maternity Pay they pay, and small employers recover 109%.
Step one, confirm the employee qualifies
Before any figures are calculated, the employee has to pass two eligibility tests. The first is service: the employee must have been continuously employed for at least 26 weeks up to and into the qualifying week, which is the 15th week before the expected week of childbirth [3]. The second is earnings: average weekly earnings must be at or above the Lower Earnings Limit, set at £129 a week for the 2026-27 tax year [4].
The employee also has to provide evidence of the pregnancy, normally the MATB1 maternity certificate issued by a midwife or doctor from around the 20th week, and give at least 28 days' notice of the date Statutory Maternity Pay should start [5]. If the employee does not qualify, the employer issues form SMP1 within 7 days of the decision and returns the MATB1 so the employee can claim Maternity Allowance instead [6].
Confirming both tests first avoids the common mistake of calculating a full 39 weeks of pay for an employee who falls short on service or earnings. Running these checks inside HMRC-recognised payroll software for SMEs removes most of the manual cross-referencing, which matters for any small business payroll handling its first maternity case.
Step two, fix the relevant period
The relevant period is the window of earnings used to calculate average weekly earnings. It runs across the 8 weeks (or 2 monthly pay periods) ending with the last normal payday on or before the end of the qualifying week [7]. For a weekly-paid employee that is the final 8 payslips before the qualifying week closes; for a monthly-paid employee it is the final 2 monthly payslips.
Everything on which Class 1 National Insurance is due counts towards the figure: basic pay, overtime, bonuses, commission, arrears and holiday pay actually paid in the period [8]. The total earnings across the relevant period are then converted to a weekly average, which becomes the basis for every subsequent step.
How average weekly earnings are derived
For a weekly-paid employee, average weekly earnings are the total of the 8 weeks' gross pay divided by 8 [7]. For a monthly-paid employee, the two months' pay is multiplied by 6 and divided by 52 to reach a weekly figure [9].
A pay rise awarded at any point between the start of the relevant period and the end of maternity leave must be factored back in, which can raise the average and the pay due [10]. This rule, established in case law, is one of the most overlooked parts of the calculation [8]. The same averaging logic that underpins variable-hours holiday pay applies here, as explained in the guide to the holiday pay 52-week average.
Step three, apply the two-tier rate
Statutory Maternity Pay is paid in two tranches across a maximum of 39 weeks. The first 6 weeks are always 90% of average weekly earnings with no cap. The next 33 weeks are paid at whichever is lower, the flat weekly rate of £194.32 or 90% of average weekly earnings [1].
| Period | Rate | Notes |
|---|---|---|
| Weeks 1 to 6 | 90% of average weekly earnings | No cap, always earnings-based [[7]](https://www.gov.uk/guidance/statutory-maternity-pay-manually-calculate-your-employees-payments) |
| Weeks 7 to 39 | Lower of £194.32 or 90% of average weekly earnings | Flat rate for the 2026-27 tax year [[4]](https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027) |
| Weeks 40 to 52 | Unpaid | Leave continues, pay stops [[3]](https://www.gov.uk/maternity-pay-leave/eligibility) |
For a higher earner, the 90% figure in weeks 7 to 39 sits above £194.32, so the flat rate applies. For a lower earner whose 90% figure falls below £194.32, the earnings-based figure applies throughout, and the flat cap is never reached.
Step four, work through the numbers
Two worked examples show how the two-tier rate plays out at different earnings levels. Both assume the employee takes the full 39 paid weeks.
| Scenario | Average weekly earnings | Weeks 1 to 6 (90%) | Weeks 7 to 39 | Total Statutory Maternity Pay |
|---|---|---|---|---|
| Higher earner | £600.00 | £540.00 a week, £3,240.00 total | £194.32 a week, £6,412.56 total | £9,652.56 |
| Lower earner | £140.00 | £126.00 a week, £756.00 total | £126.00 a week, £4,158.00 total | £4,914.00 |
In the higher-earner case, the first 6 weeks pay £540.00 (90% of £600.00), then the flat rate of £194.32 applies because it is lower than 90% of earnings [1]. In the lower-earner case, 90% of £140.00 is £126.00, which stays below the flat cap, so £126.00 is paid for all 39 weeks [7].
Statutory Maternity Pay is treated as earnings, so PAYE income tax and Class 1 National Insurance are deducted in the normal way before the employee receives the net amount [8]. The figures above are gross. For occasional or one-off calculations outside a full payroll cycle, an instant payslip generator can produce a compliant payslip without a full software setup.
Step five, calculate what the employer recovers
Most of the cost is reclaimable. An employer whose total Class 1 National Insurance liability was more than £45,000 in the previous tax year recovers 92% of the Statutory Maternity Pay paid out [2]. An employer whose liability was £45,000 or less qualifies for Small Employers' Relief and recovers 100%, plus a 9% compensation top-up, giving a total of 109% [11]. The compensation rate rose from 8.5% to 9% on 6 April 2026 [12].
| Employer type | Recovery rate | Recovery on £9,652.56 of SMP |
|---|---|---|
| Standard (NI over £45,000) | 92% | £8,880.36 |
| Small employer (NI £45,000 or less) | 109% | £10,521.29 |
The recovery is claimed through the Employer Payment Summary submitted under Real Time Information, so the figures have to reconcile to the Statutory Maternity Pay reported on the Full Payment Submission [2]. Accountants reconciling this across a client book typically rely on a multi-client payroll dashboard that tracks recovery per employer automatically.
Keeping in touch days and the calculation
An employee can work up to 10 keeping in touch days during maternity leave without losing any Statutory Maternity Pay [13]. For each keeping in touch day worked, the employer must pay at least the week's Statutory Maternity Pay due, with any additional contractual pay agreed between the parties [14]. Once all 10 days are used, any further work ends Statutory Maternity Pay for that week, which the calculation has to reflect.
Conclusion
The Statutory Maternity Pay calculation is a sequence rather than a single sum: eligibility first, then the relevant period, then average weekly earnings, then the two-tier rate, and finally the recovery. The two figures that carry the most risk are the relevant period and the qualifying week, because both are fixed points in the calendar that determine everything downstream.
The wider direction of travel is towards earlier and broader family pay entitlements, with day-one rights and new statutory payments added to the payroll in recent reforms. As the list of statutory payments grows, the value of a system that calculates average weekly earnings, applies the right rate and reports recovery automatically grows with it.
Frequently asked questions
How is average weekly earnings calculated for maternity pay?
Average weekly earnings are the total gross earnings paid in the 8-week relevant period ending with the last payday before the qualifying week closes, divided by 8 for a weekly-paid employee [7]. For a monthly-paid employee, the two relevant months' pay is multiplied by 6 and divided by 52. All earnings subject to Class 1 National Insurance count, including overtime, bonuses and holiday pay [8].
What is the maximum statutory maternity pay an employer pays in 2026-27?
For an employee whose average weekly earnings are high enough, the maximum is 6 weeks at 90% of earnings followed by 33 weeks at the flat rate of £194.32 [1]. The flat-rate portion alone comes to £6,412.56 over 33 weeks, with the first 6 weeks added on top at 90% of the employee's actual earnings [4].
Can an employer reclaim all the statutory maternity pay paid out?
A standard employer reclaims 92% of the Statutory Maternity Pay paid [2]. A small employer, defined as one whose Class 1 National Insurance liability was £45,000 or less in the previous tax year, reclaims 100% plus a 9% compensation payment, totalling 109% [11]. The claim is made through the Employer Payment Summary.
Does a pay rise during maternity leave change the calculation?
Yes. A pay rise awarded at any time between the start of the relevant period and the end of statutory maternity leave must be applied retrospectively to the average weekly earnings figure [10]. This can increase the 90% element in the first 6 weeks and, for some employees, the amount due in later weeks, so any back pay owed has to be recalculated and paid [8].
