1. What Is Statutory Maternity Pay?

Statutory Maternity Pay (SMP) is a weekly payment for employed women who are taking time off work to have a baby. It's paid by employers for up to 39 weeks.

2. How Is SMP Calculated?

The calculation follows this formula:

Where:

• \( AWE \) — Average Weekly Earnings (GBP/week)
• \( SMP\_rate \) — The current statutory maternity pay rate
• First 6 weeks: 90% of your average weekly earnings
• Remaining 33 weeks: The lower of the statutory rate or 90% of your average weekly earnings

Explanation: The calculation ensures you receive 90% of your average weekly earnings for the first 6 weeks, followed by the statutory rate or 90% of your earnings (whichever is lower) for the next 33 weeks.

3. Eligibility Requirements

Details: To qualify for SMP, you must earn at least the Lower Earnings Limit, give proper notice to your employer, and have worked for your employer continuously for at least 26 weeks by the 15th week before your due date.

4. Using The Calculator

Tips: Enter your average weekly earnings before tax and the current statutory maternity pay rate. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: When does SMP payment start?
A: SMP can start from the 11th week before your baby is due and is typically paid from when you stop working.

Q2: Is SMP taxable?
A: Yes, SMP is subject to income tax and National Insurance contributions, just like your regular wages.

Q3: What if I don't qualify for SMP?
A: You may be eligible for Maternity Allowance instead, which is paid by the government rather than your employer.

Q4: Can I work while receiving SMP?
A: You can do up to 10 "keeping in touch" days during your maternity leave without affecting your SMP payments.

Q5: How is average weekly earnings calculated?
A: Your 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.