Statutory Maternity, Paternity, and Adoption Pay: A Guide for Employers & Employees

Parental pay, whether it's Maternity Pay (SMP), Paternity Pay (SPP), or Adoption Pay (SAP), helps support parents as they bring a new child into their lives, whether through birth or adoption. 

Here’s a straightforward look at how each of these types of leave works and what they mean for both employers and employees.

The Basics of Statutory Maternity Pay, Paternity Pay, and Adoption Pay

• Statutory Maternity Pay (SMP): This support is available for mothers taking time off after having a baby. It provides a safety net, allowing new mums to take the time they need to recover and care for their new-born without worrying about a major financial setback. This includes statutory maternity leave as well as maternity allowance for those who do not qualify for SMP.
• Statutory Paternity Pay (SPP): Designed for dads or partners (including same-sex partners), SPP allows them to take time off to support their partner and bond with their new child, ensuring both parents can share in those early, important moments.
• Statutory Adoption Pay (SAP): SAP provides financial support for individuals or couples adopting a child. It ensures adoptive parents have the same opportunity as birth parents to bond with their new family without financial stress. Agency workers may also qualify for SAP if they meet the employment requirements.

Eligibility Basics: Maternity Allowance, Statutory Leave, and Qualifying Weeks

• SMP: To be eligible, you need to have worked for your employer for at least 26 weeks (up to 15 weeks before your due date), earn at least £123 a week, and provide 15 weeks' notice before the baby’s due date. The qualifying weeks are key to determining eligibility, as it marks the point at which you meet the requirements for statutory maternity benefits and other support options. You may need to provide an SMP1 form if you do not qualify for SMP, which will help you claim maternity allowance instead.
• SPP: You need to have worked for your employer for 26 weeks by the 15th week before the due date, earn at least £123 per week, and give 28 days' notice before taking leave. 
• SAP: Similar to SMP, you need 26 weeks’ continuous employment by the time you’re matched with a child, earn £123 or more per week, and provide 28 days' notice. Ordinary adoption leave and additional adoption leave are similar to maternity leave structures.

What Employers Need to Do: Checking for Eligibility, Notice for Maternity Leave, Support Allowance, and Handling Bonus Payments

1. Check Eligibility: Verify that the employee meets the required work period and earnings threshold.
2. Get the Paperwork: Ensure all necessary notices and documents are submitted, like the MATB1 form for maternity or the adoption matching certificate. For those not eligible, make sure they receive an SMP1 form to apply for maternity allowance or support allowance.
3. Other Payments: This includes handling bonus payments where applicable and ensuring accuracy with other deductions. Most of these payments can be reclaimed from HMRC. This also includes occupational maternity pay and contractual maternity pay where applicable, which may provide more than statutory levels.
4. Keep Records: Maintain records of all payments and relevant documents for at least three years, including any notice for maternity leave and type of maternity pay provided.

Payment Details: Maternity Pay, Leave Periods, Statutory Maternity Leave, and Other Deductions

• SMP & SAP:some text
  • Payments cover 39 weeks in total: the first 6 weeks are paid at 90% of average weekly earnings (AWE), and the remaining 33 weeks at either £186.02 or 90% of AWE (whichever is lower). Some employees may also be entitled to enhanced maternity pay depending on their employment contract.
  • Leave: Eligible employees can take up to 52 weeks of leave, which includes 26 weeks of Ordinary Maternity Leave and 26 weeks of Additional Maternity Leave. Pregnancy and maternity leave are protected by law, ensuring no unfair treatment occurs during this time.
• SPP:some text
  • Paid for 1 or 2 weeks, at either £186.02 or 90% of AWE (whichever is lower).
  • Leave must be taken within 56 days of the child’s birth or adoption.

Extra Considerations: Enhanced Maternity Pay, Sick Pay, Pension Contributions, and Statutory Payment Disputes Team

• Shared Parental Leave: Parents can share up to 50 weeks of leave and 37 weeks of pay, providing flexibility in how they manage their time off.
• Keeping in Touch (KIT) Days: Employees on maternity or adoption leave can work up to 10 KIT days without affecting their leave pay, which can help ease the transition back to work.
• Enhanced Benefits: Some employers might offer additional maternity, paternity, or adoption pay beyond statutory levels. It’s worth checking your employment contract for any enhanced maternity pay or contractual maternity pay provisions.
• If there are issues regarding the recovery of payments, employers can contact the Statutory Payment Disputes Team for assistance. Remember to account for pension contributions during this period, as they may need to continue even while the employee is on leave.
• Tax Credits: Employees may also be eligible for tax credits during their leave, depending on their circumstances. This can help make up for any difference between statutory pay and their usual earnings.
• Sick Pay: It’s also important to note that if an employee is unable to work due to illness related to pregnancy, they may be eligible for sick pay instead of starting their maternity leave early.

Why This Matters: Understanding Maternity Leave, Statutory Pay, and Available Support

SMP, SPP, and SAP are designed to support new parents by giving them the time and space to focus on what matters most, without the burden of financial worries. By understanding these provisions, both employers and employees can ensure the process goes as smoothly as possible, creating a supportive environment during a significant life transition. Whether it’s ordinary maternity leave, notice for maternity leave, or understanding how much maternity pay you are entitled to, having the right advice and help can make a big difference in navigating these important life changes.

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