Knowing you are entitled to Statutory
Maternity Pay is one thing. Knowing what
will actually appear in your bank account
each month during maternity leave is
something else entirely.<\/p>\n\n\n\n
This guide explains exactly how SMP works
in 2026\/27, how tax applies during maternity
leave, what enhanced pay means for your
take-home, and what to expect in your
account week by week.<\/p>\n\n\n\n
SMP is paid by your employer and covers
up to 39 weeks of maternity leave. It works
in two phases:<\/p>\n\n\n\n
Phase 1 \u2014 First 6 weeks:
90% of your Average Weekly Earnings (AWE).
Your AWE is calculated from your earnings
in the eight weeks before the qualifying
week (the 15th week before your due date).<\/p>\n\n\n\n
Phase 2 \u2014 Weeks 7 to 39:
The lower of \u00a3184.03 per week (the 2026\/27
SMP rate) or 90% of your AWE. For most
employees earning above \u00a321,500 per year,
the flat rate of \u00a3184.03 will apply.<\/p>\n\n\n\n
Weeks 40 to 52:
Unpaid \u2014 unless your employer offers
enhanced maternity pay that extends
beyond 39 weeks.<\/p>\n\n\n\n
Yes \u2014 SMP is taxable income. However,
because SMP is significantly lower than
most employees’ normal salaries, many
people pay little or no tax during maternity
leave, particularly during the SMP flat
rate phase.<\/p>\n\n\n\n
During Phase 1 (90% of AWE), tax is
calculated on the annualised equivalent
of your SMP. On a salary of \u00a335,000,
your 90% AWE phase pay would be
approximately \u00a3606 per week \u2014 equivalent
to an annual income of \u00a331,512, which
falls within the basic rate band.<\/p>\n\n\n\n
During Phase 2 (\u00a3184.03 per week), the
annualised equivalent is \u00a39,569 \u2014 well
below the personal allowance of \u00a312,570.
Most employees pay no income tax during
the flat rate SMP phase.<\/p>\n\n\n\n
Enhanced maternity pay is additional pay
provided by your employer on top of SMP.
Common arrangements include:<\/p>\n\n\n\n
4 weeks at full pay, then SMP
8 weeks at full pay, then SMP
12 weeks at full pay, then SMP
26 weeks at full pay, then SMP<\/p>\n\n\n\n
Some employers offer half pay for a
further period after the full pay phase.
Your entitlement depends entirely on your
employment contract \u2014 check your staff
handbook or speak to HR.<\/p>\n\n\n\n
Your Account<\/p>\n\n\n\n
The following example uses a salary
of \u00a335,000 with no enhanced maternity
pay. Normal monthly take-home before
maternity leave is approximately \u00a32,286.<\/p>\n\n\n\n
Month 1\u20132 (90% AWE phase):
Gross: approximately \u00a31,213\/month
Tax: approximately \u00a3118\/month
Take-home: approximately \u00a31,095\/month
(48% of normal take-home)<\/p>\n\n\n\n
Months 2\u20139 (SMP flat rate):
Gross: approximately \u00a3797\/month
Tax: nil (below personal allowance)
Take-home: approximately \u00a3797\/month
(35% of normal take-home)<\/p>\n\n\n\n
Month 9 onwards (weeks 40\u201352):
No SMP \u2014 unpaid unless enhanced<\/p>\n\n\n\n
The income reduction during maternity
leave is significant and often
underestimated. Here are practical
steps to plan around it:<\/p>\n\n\n\n
Calculate your maternity income now.
Use the Payslp Maternity Pay Calculator
to see your exact month-by-month
take-home based on your salary and
any enhanced pay from your employer.
Knowing the numbers early gives you
time to plan.<\/p>\n\n\n\n
Build a maternity buffer. Aim to save
the difference between your normal
take-home and your SMP take-home for
at least 3-4 months before your
leave starts. On a salary of \u00a335,000
that is approximately \u00a3475-\u00a31,200
per month depending on the phase.<\/p>\n\n\n\n
Check your employer’s enhanced pay.
If your contract offers enhanced
maternity pay, check whether it
requires you to return to work
afterwards and for how long \u2014 many
enhanced schemes include a repayment
clause if you do not return.<\/p>\n\n\n\n
Consider pension contributions.
Your employer must continue to
contribute to your pension during
paid maternity leave as if you were
working normally. You only contribute
based on the SMP you actually receive \u2014
so your take-home is not further
reduced by pension deductions during
the SMP phase.<\/p>\n\n\n\n
Shared Parental Leave. If your
partner is eligible, Shared Parental
Leave can be used to extend the
period of paid leave between you.
Statutory Shared Parental Pay is
the same rate as SMP flat rate.<\/p>\n\n\n\n
Enter your salary and enhanced pay
weeks to see exactly what will appear
in your account each month.<\/p>\n\n\n\n
\ud83d\udc49 Use the free Payslp Maternity Pay
Calculator at payslp.com<\/p>\n","protected":false},"excerpt":{"rendered":"
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