The Ultimate Guide to Maternity

It's very common for employees to temporarily leave their jobs to have a baby. As an employer, you have a legal obligation to ensure they receive the right maternity benefits. The Government’s Employment Rights Bill, currently looking to be implemented sometime in 2026 will seek to implement maternity leave and pay as a day-one-right.

In this guide, we'll look at what maternity pay and leave are, how much is given, and ways to ensure employees are financially supported during leave.

If you need immediate support, get in touch with one of Croner's experts here 0808 501 6651.

Maternity pay

Maternity pay is offered to employees to help them financially as they raise their new baby.

If they don't get statutory maternity pay (if they’re eligible), you could end up facing discrimination claims, compensation penalties, and reputational damage.

There are other variations to maternity pay that employees can be entitled to. For example:

Statutory Maternity pay

Statutory maternity pay (SMP) is a financial payment given to employees on pregnancy and maternity leave. Employers must provide the payment as a legal entitlement under parental leave rights.

Maternity pay is provided up to and including the 39th week of maternity leave

Employees get statutory maternity pay in the following ways:

• First six weeks of maternity leave: 90% of their average weekly earnings (before tax).
• Next 33 weeks of maternity leave: 90% or £187.18 of their average weekly earnings (whichever one is lower).
• Last 13 weeks of maternity leave: Unpaid unless contractual maternity pay is provided.

Employees receive statutory maternity pay in the same way as normal wages. So, employees will have tax, pension contributions, and National Insurance deducted accordingly.

Contractual Maternity Pay

You may decide to offer pregnant employees more than the statutory maternity pay amount.

Contractual maternity pay is a financial amount given to those on maternity leave; it's often higher than the legal minimum amount. It's also known as 'enhanced maternity pay' or 'occupational maternity pay'.

Employers may choose to offer more generous maternity benefits alongside SMP. Contractual maternity pay helps employees going through financial hardships; and can encourage employees to return to work after their maternity leave ends.

However, if an employee decides not to return to work again, provided it is set out in their contract, they'll need to repay the full amount that goes beyond the statutory minimum. (You can decide whether it's in small instalments or as a lump sum – whatever’s agreed to in their contracts).

Maternity Allowance

Maternity allowance (MA) is a financial benefit that might be available to those who do notqualify for SMP.

Those who are eligible to claim maternity allowance (whichever is lower) will receive :

1. £187.18 as weekly average pay for 39 weeks (under the same employer), or
2. 90% of their average earnings per week.

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How to provide statutory maternity pay?

One of the biggest challenges employees on maternity leave face is a shift in their financial situation.

That's why they get statutory maternity pay through your payroll system. By doing so, you'll be able to protect their welfare throughout these complicated times.

Here are ways to help support employees on maternity leave:

Create a statutory maternity leave policy

Statutory maternity leave is a period of authorised absence that employees take when having a baby. When employees are ready to request this form of parental leave, you must provide information on the suitable guidelines.

By creating a maternity leave policy, you'll be able to manage all duties and predicaments that may occur. It can also answer maternity pay questions that are frequently asked by employees. For example, 'can you take your first 26 weeks of leave before your baby is due?' Or, 'should I take additional or ordinary maternity leave?'

Make sure employees can reach out to you, the HR department, or occupational health for further advice.

Maintain employment entitlements

Despite receiving paid maternity leave and pay, employees may still experience a financial strain from the cut in their wages. Even if they're currently not working, you must maintain their employment entitlements during maternity leave. For example:

• Pay rises and bonuses
• Holiday entitlements
• Return to work
• Protection against discrimination
• Information on workplace developments

Some employees may be eligible for financial support allowances like Employment and Support Allowance (ESA), Universal Credit (UC), and Child Tax Credit.

Provide maternity pay to all eligible employees

Both full-time and part-time employees are eligible for maternity pay if they qualify

They simply need to be part of your workforce, regardless of whether they have 'employee' status or not.

Part-time employees are entitled to:

• Maternity leave
• Paternity leave
• Shared parental leave
• Parental bereavement leave
• Adoption leave (along with statutory adoption pay)

Self-employed people are only entitled to Maternity Allowances, but other benefits may be available depending on their contracts. If an employee has multiple jobs, they can receive maternity pay from more than one employer.

Help employees return to work after maternity leave

Most pregnant employees will take their full 52 weeks of statutory maternity leave. But during this time, many are torn between staying at home or returning to work.

Employers can ease worries about returning to work in numerous ways. For example, you can offer a phased return, flexible working conditions, or paid time off for childcare.

If an employee wishes to return to work before the end of the 52 weeks or a date they have previously given then they need to confirm their new return date no less than eight weeks before they intend to return..

If an employee has taken 26 weeks or less maternity leave then they are entitled to return to the same job as she was in before she went on maternity leave.  If the employee takes more than 26 weeks then they are still entitled to return to the same job unless the employer can demonstrate that it is not reasonably practicable for them to do so and in which case they are entitled to a suitable alternative on no less favourable terms and conditions.

If an employee is adamant about not returning, establish if there is anything that could be done to support them in returning to work but if not,  just ensure they still receive their statutory maternity pay if they have not exhausted it.

How much is statutory maternity pay?

UK Statutory Maternity Pay (SMP) is paid for up to 39 weeks. On 6th April 2025, Statutory Maternity Pay in the UK will increase to £187.18 or 90% of the employee’s average weekly earnings.

Maternity pay entitlement is for 39 weeks. This is on the condition that the employee has been continuously in your employ for 26 weeks as at the 15^th week before the child is due to be born which is known as the qualifying week.

They must also have average earnings of at least £125 per week (from 6th April 2025) in the eight weeks before the 15th week, before the 'expected week of childbirth' (EWC).

Employees who haven't worked for 26 weeks will have to claim maternity allowance.

How statutory maternity pay works

When an employee is having a baby, they’re entitled to a year of statutory maternity leave. This is true no matter how long they’ve been in the job. To be eligible for this, an employee must:

• Be an employee.
• Give you the correct notice.

While an employee is on maternity leave, employment law still entitles them to the employee rights they normally have, such as:

• Holiday accrual
• Protection from unfair dismissal
• Pension payments and rights during the period of Statutory Maternity Pay payment
• Any other employee benefits (e.g. gym membership, medical insurance) for the  whole maternity leave period

How Much is Statutory Maternity Pay

The first six weeks

90% of the employee’s average weekly earnings (before tax). So if your employee normally earns £400.00 a week, they will receive £360.00 a week. Tax and National Insurance deductions will occur, as with a normal wage.

The following thirty-three weeks

From April 2025, the current rate will be £187.18 per week (or, if lower, 90% of the employee’s average weekly earnings).

Who pays for statutory maternity pay

You must pay Statutory Maternity Pay (SMP) just like you would pay a salary. You can usually reclaim 92% of maternity payments from HMRC.

If your business qualifies for Small Employer’s Relief, from 6^th April 2025 you might be able to reclaim 108.5%.

If you pay less than £45,000 in class 1 National Insurance, you will qualify for Small Employer’s Relief.

How maternity pay is calculated if the employee has a pay rise

Firstly, if a pay rise is due, you must not withhold it because of maternity leave. If the pay rise is effective at any time up to the end of the statutory maternity leave period it will affect SMP calculations and you will need to recalculate SMP as if the earnings had been paid at the time and pay any additional SMP due as a result.  

You must pay any difference that a pay rise causes, even if your employee doesn't intend to return to work.

Will Breaks in Employment Change the Maternity Leave Salary Calculation?

The break should not influence the calculation but may affect whether the employee is applicable for SMP. The following breaks are allowable:

• Temporary cessation of work
• Public holidays
• Sickness and injury, as long as the period of absence is 26 weeks or less
• Previous maternity, parental, or adoption leave

How do you qualify for statutory maternity pay?

In order to qualify for statutory maternity pay, employees need to meet these eligibility criteria beforehand:

• Earn at least £125 per week as average pay (on average for 8 weeks before the qualifying week).
• Give at least 28 days of notice.
• Provide the employer proof of their pregnancy by providing a copy of their  MATB1 form. This is normally given at the 24 week midwife appointment.
• Have at least 26 weeks' of continuous service into the 'qualifying week'. This is the 15th week before the baby's due date (expected).

What is the UK law on statutory maternity pay?

Under UK laws, there are certain legal rights that pregnant and 'new parent' employees are entitled to.

You cannot discriminate against anyone based on pregnancy and maternity matters. The Equality Act 2010 recognises the two terms as protected characteristics. So, every employee is protected against pregnancy and maternity discrimination.

This legal right extends to same-sex couples, as well as mixed-sex ones. For example, a pregnant employee is entitled to maternity leave and pay, as well as shared parental leave (SPL) for their civil partner.

There are serious consequences for unfair treatment or neglecting maternity pay rights. If you cannot afford or refuse to pay staff SMP, employees may raise their issue to the HM Revenue & Customs as well as raising discrimination claims with an employment tribunal.

Is maternity pay taxable?

Yes, maternity pay is taxable. An employee receives deductions for tax and National Insurance on their Statutory Maternity Pay (SMP). This is no different to when they receive a normal wage slip. The employee still receives deductions for tax and National Insurance from maternity payments.

Maternity leave

Statutory maternity leave is 52 weeks, which comprises:

• Ordinary Maternity Leave—first 26 weeks (six months.)
• Additional Maternity Leave—last 26 weeks (six months.)

Employees don't have to take the full 52 weeks but must take at least 2 weeks' leave after the baby is born ( or 4 weeks if the employee works in a factory).

Of this leave, employees  are entitled to 39 weeks, made up of:

• 6 weeks getting 90% of your average weekly pay (before tax).
• 33 weeks getting either £187.18 a week or 90% of your average weekly pay (before tax) - whichever is less.

Giving maternity leave notice

An employee must tell you about their pregnancy no later than the end of the 15^th week before the EWC.  If you want it in writing, they must submit it this way.

In this, they must state that they are pregnant, the EWC, the date she intends her ordinary maternity leave to start which must be a date no sooner than the beginning of the 11^th week before the EWC.

You must confirm within 28 days the dates the leave will start and end as well as how much SMP the employee will get and when it will start and stop. If you decide they’re not eligible, you must give them the SMP1 form within 7 days of making your decision and explain why.

Shared parental leave

If the employee has a spouse or civil partner, they may wish to use Shared Parental Leave (SPL). The eligible staff members share up to 50 weeks of leave within the first year after their child is born (or adopted).

Parents can choose to take the leave separately or together or they can split the time, or stagger leave and pay. Eligible parents who are sharing responsibility for a child can get SPL in the first year after:

• The birth of their child.
• Adopting a child.
• Getting a parental order if they had the child through surrogacy.

Workers, including agency, contract and zero-hours workers, are not entitled to SPL. However, they might be able to get Shared Parental Pay.

Maternity allowance for the self-employed

If you're self-employed, or your business makes use of self-employed persons, you might be wondering about maternity pay and maternity allowance. Are these options available?

The answer is yes. If an individual is self-employed but also has another job, they might be eligible for Statutory Maternity Pay (SMP). However, like every other employee, there are certain criteria that they must meet to get SMP. If they don't meet them, there are other options available, such as maternity allowance (MA).

Am I eligible for a maternity allowance?

If you're self-employed and you pay Class 2 National Insurance, then you should be eligible to claim maternity allowance. You'll also need to prove self-employment for at least 26 weeks and earn a minimum £30 per week for 13 weeks. The 13 weeks don't need to be consecutive. It's essential that you pay National Insurance for at least 13 weeks of the 26 before your child is due.

If you don't, you'll still get maternity allowance, but at a much lower rate of £27 per week, rather than £187.18 per week. You're also eligible for maternity allowance if you recently left a job or you're at work but you don't qualify for SMP. So, if you're self-employed, but recently left your "employed" job, you should check whether or not you qualify for SMP. If not, check to see whether you're eligible for the full amount of maternity allowance for self-employed individuals.

How do I apply for maternity allowance if I’m self-employed

Apply for maternity allowance via the maternity allowance claim form, which is available on the Government's website. You'll need to send this, once you've completed it, to the address on the form. The claim form is over 20 pages long. Filling it out can be a daunting task.

Don't attempt to complete the form on a lunch break or when you happen to have a spare moment. Carve out a chunk of your day to give the task the attention it requires. Also, don't let the sheer size of the form put you off filling it out. Delaying will only complicate matters if there are any issues with your claim.

Other benefits

Self-employed maternity pay is a complex and time-consuming matter, but the sooner you tackle it, the better. Once maternity pay is out of the way, you can think about looking at other benefits. You could be eligible for the Sure Start Maternity Grant if this is your first child, or your partner receives a jobseeker's allowance.

The Sure Start Maternity Grant is a one-off payment of £500 to help with the costs of a newborn baby. Child Tax Credit is another benefit for assistance with the costs of raising a child. To receive a Child Tax Credit, you must meet the criteria.

Do agency workers get maternity pay?

Agency workers can get maternity pay if they meet the same qualifying conditions.

The agency worker must prove they were in continuous employment or in engagement with the agency. They must prove this for the 26 weeks by the 15th week before the EWC to meet the conditions of ‘continuous employment.’

Taking annual leave or sickness absence does not break continuous employment.

Qualifying Criteria: How can agency workers get statutory maternity pay?

For an agency worker to qualify for Statutory Maternity Pay (SMP), they must:

• Have told the agency about their pregnancy, and the date upon which they expect their SMP to start.
• They have earned at least (or above) the current Lower Earnings Limit (LEL) in an eight-week period. As of April 6th 2025, the Lower Earnings Limit is £125 per week.
• Be involved with the same agency for a continuous 26 weeks by the start of the 15th week before the expected week of childbirth. She must remain engaged by the same agency in the qualifying week.

If an agency worker is unable to accumulate 26 weeks' continuous engagement because they're on paid annual leave, or they're off for sickness, or the agency has no work to offer, then they can still qualify for SMP.

Maternity Rights for agency workers

It is illegal to discriminate against agency workers on the following grounds. The agency worker:

• Is pregnant.
• Gave birth within the last six months.
• Is breastfeeding.

The following actions are also examples of discrimination if to do with the agency worker's pregnancy:

• The agency refuses to place the worker in a job.
• The hirer refuses to hire the agency worker.
• The hirer terminates the job because the agency worker is pregnant.
• The agency refuses to keep the pregnant worker on its books.
• The agency only offers pregnant workers short jobs, saving longer opportunities for other agency workers.
• The hirer refuses to let the worker come back because the worker took leave for maternity.

Health Risks to Agency Workers

A hirer should make reasonable adjustments so that a pregnant worker or new mother worker can do their job successfully. If this is not possible, the agency must find alternative work for the worker, or pay the worker at the same rate for what would've been the length of the contract.

Antenatal care for agency workers

Once an agency worker has 12 weeks in one job, they can get paid time off to attend antenatal care if it's not possible for the worker to arrange the antenatal care outside of their working hours. They will also be eligible for the payment if their travel time is during their working hours. Antenatal care includes antenatal classes, appointments, and—if a doctor or midwife recommends them—parenting classes.

Maternity leave for agency workers

Agency workers ( unless they are an employee of the agency) cannot take maternity leave, adoption leave, or shared parental leave. Currently, only people with the employment status of employees have access to these rights.

Redundancy on maternity leave

When it comes to redundancy and maternity leave, we have seen employers make mistakes that resulted in a tribunal claim. Keep in mind you might have to prove you did not simply consider letting your pregnant employee go because of their personal situation. Making a mistake when resorting to redundancy during maternity leave could cost you dearly if it comes across as discrimination.

Can you make someone redundant on maternity leave?

Most employers ever faced with this situation will ask the question. And they should. Proceeding without covering relevant aspects can lead you to making mistakes. It can also lead to loss of trust within your company, loss of time necessary to make amends, and loss of reputation.

If you have to make your employee redundant whilst on maternity leave, think how this will look to a neutral observer. Have you considered all the available options first?

Approach the situation with this in mind, and remember that, by law, you need to:

• Ensure redundancy is a genuine and the most feasible option. Be ready to prove it if necessary.
• Consider alternatives - offer employment on a different job role an employee at risk of redundancy who is pregnant or on maternity leave and for 18 months following the birth of her child has the right to be offered any suitable alternative role.  Failure to do so can make the dismissal automatically unfair.
• Use non-discriminatory reasons for choosing the respective employee(s). A dismissal will be automatically unfair if the selection relates to any reason connected to pregnancy, childbirth or maternity.
• Consult with them and keep them informed at every stage of the process.
• Communicate clearly throughout and do not leave anything out that could trigger claims of discrimination.

Checks before making an employee redundant on maternity leave

Start by asking yourself how solid your reasons for making staff redundant.

• Would they stand in a tribunal?
• How easily could the employee make a redundant dispute if you have genuine reasons for it?

As with any redundancy exercise, a dismissal on the grounds of redundancy  should be a last resort after all other options have been explored.  Employees who are pregnant or on maternity leave should not be treated any less favourably than other employees and during a redundancy process have special legal protection.  If selection criteria is being used exercise extreme caution to ensure no criteria that could be connected to the pregnancy are taken into consideration such as pregnancy related sickness.

 

Get expert advice

Whether you hire one employee or an entire workforce, you need to calculate and offer the correct maternity pay to your staff.

If you avoid paying their legal financial rights, you could end up facing tribunal hearings, compensation fees, and reputational damages.

But you don’t need to sort it all out on your own. From the stage of putting together an employment contract to other necessary documentation, our HR advisors are here to help.

Have questions about statutory maternity pay? Speak to a Croner expert for any HR or employment law issue today on 0808 501 6651.