What Are Statutory Sick Pay and Statutory Maternity Pay in the UK?

A complete 2026 guide to SSP and SMP for employees, company directors and employers: eligibility, payment rates, payroll calculations, maternity leave, pregnancy-related sickness and HMRC recovery

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Being unable to work because of illness or pregnancy can create two separate problems.

The first is practical: the employee needs time away from work. The second is financial: normal salary may stop or reduce during that absence.

The UK statutory-payment system provides a minimum level of financial protection through:

Statutory Sick Pay — SSP, for qualifying periods of sickness;

and

Statutory Maternity Pay — SMP, for eligible employees before and after childbirth.

Although both payments are normally processed by the employer through payroll, they operate under very different rules.

SSP changed significantly from 6 April 2026. It is now available to eligible employees regardless of how little they earn, is payable from the first full qualifying day of sickness and is calculated as the lower of 80% of average weekly earnings or the statutory maximum rate.

SMP did not adopt the same rules. It still has a minimum earnings condition, a continuous-employment test, a qualifying week and a separate 39-week payment structure.

Understanding the difference is important for employees, employers, payroll administrators and directors of their own Limited Companies.

The Main Rules at a Glance

Statutory Sick Pay — SSP

SSP provides a minimum payment when an eligible employee is unable to work because of sickness.

For the 2026–2027 tax year:

Maximum weekly rate: the lower of £123.25 or 80% of the employee’s average weekly earnings.

Maximum duration: up to 28 weeks.

Minimum earnings requirement: none for sickness absences covered by the rules from 6 April 2026.

When payment starts: from the first full qualifying day of sickness.

Who pays it: the employer, through payroll.

Can the employer reclaim it from HMRC? Normally, no.

Is SSP taxable? Yes. Income Tax and National Insurance may be deducted where applicable.

Statutory Maternity Pay — SMP

SMP replaces part of an eligible employee’s earnings during maternity leave.

For the 2026–2027 tax year:

First six weeks: 90% of average weekly earnings, with no statutory upper limit.

Following 33 weeks: the lower of £194.32 per week or 90% of average weekly earnings.

Maximum duration: up to 39 weeks.

Minimum earnings requirement: average weekly earnings must normally be at least the Lower Earnings Limit applicable at the end of the qualifying week. Where the relevant 2026–2027 rate applies, this is normally £129 per week.

Service requirement: normally 26 weeks of continuous employment continuing into the qualifying week.

Who pays it: the employer, through payroll.

Can the employer reclaim it? Usually yes. Most employers can recover 92%, while qualifying small employers can normally recover 109%.

Is SMP taxable? Yes.

SSP and SMP are statutory minimums. An employment contract may provide more generous company sick pay or enhanced maternity pay, but it cannot reduce a qualifying employee’s statutory entitlement.

SSP and SMP Are Not the Same as Leave

One of the most common misunderstandings is treating statutory pay and statutory leave as though they were the same entitlement.

They are not.

SSP is a payment during sickness absence. The employee’s wider rights during sickness may also involve medical evidence, reasonable adjustments, disability protection, long-term capability procedures and return-to-work arrangements.

SMP is a payment lasting for up to 39 weeks. Statutory Maternity Leave can last for up to 52 weeks:

26 weeks of Ordinary Maternity Leave;

followed by

26 weeks of Additional Maternity Leave.

An employee may therefore qualify for maternity leave but not qualify for SMP.

It is also possible to receive 39 weeks of SMP and then remain on maternity leave for another 13 weeks without statutory maternity pay.

DCTaxAgent Insight

Leave determines whether the person is entitled to be away from work. Statutory pay determines whether the employer must provide a minimum payment during part of that absence.

Part One: Statutory Sick Pay

What Is SSP?

Statutory Sick Pay is the minimum amount an eligible employer must pay when an employee is unable to work because of sickness.

It is normally paid:

through the employer’s payroll;

on the employee’s usual payday;

only for the employee’s qualifying working days;

with Income Tax and National Insurance deducted where applicable.

An employer may operate a more generous contractual sick-pay scheme. For example, the employee might receive full salary for a certain number of weeks.

Where company sick pay is available, SSP will normally be included within the overall payment rather than being added on top of full salary.

What Changed on 6 April 2026?

Before 6 April 2026, SSP generally had two important restrictions.

First, an employee usually had to earn at least the National Insurance Lower Earnings Limit.

Second, the first three qualifying sickness days were normally unpaid waiting days.

From 6 April 2026, the rules changed.

There is now:

no minimum earnings threshold for SSP;

no three-day waiting period;

payment from the first full qualifying sickness day;

a weekly payment equal to the lower of 80% of average weekly earnings or £123.25.

These changes are particularly important for:

• part-time employees;

• low-paid employees;

• employees with variable hours;

• employees who work only one or two days each week;

• directors receiving low PAYE salaries.

A person who would previously have earned too little to qualify may now be entitled to SSP.

However, a low-paid employee may receive less than £123.25 because the payment cannot exceed 80% of their average weekly earnings.

Who Qualifies for SSP?

A person will generally qualify where they:

1. are treated as an employee for SSP purposes;

2. have started work for the employer;

3. are unable to perform their work because of sickness;

4. are sick for at least one full qualifying working day;

5. notify the employer within the required period;

6. provide medical evidence when required.

Employees, agency workers and some other workers treated as employees for PAYE purposes may qualify.

A genuinely self-employed person does not receive SSP from a client or customer. They may need to consider Universal Credit, Employment and Support Allowance or other financial support instead.

SSP for Directors of Limited Companies

A company director may qualify for SSP where they are also an employee of the company.

The company must establish that the director:

• is genuinely employed;

• is paid through PAYE;

• has started working for the company;

• is unable to perform their employment duties;

• follows the normal sickness-notification rules;

• has qualifying payroll earnings from which average weekly earnings can be calculated.

Receiving dividends does not create SSP entitlement.

Dividends are payments received as a shareholder. SSP is based on the director’s employment relationship and qualifying payroll earnings.

Since April 2026, a low salary does not automatically prevent SSP entitlement. However, the amount of SSP may be restricted to 80% of that low average salary.

How Much SSP Is Paid?

For sickness absences covered by the rules from 6 April 2026, the weekly amount is:

80% of average weekly earnings

or

£123.25

whichever is lower.

The £123.25 figure is therefore a maximum statutory amount. It is not automatically paid to every employee.

Example 1: Employee Earning £500 per Week

Average weekly earnings are £500.

Eighty per cent of £500 is:

£500 × 80% = £400

The lower of £400 and £123.25 is £123.25.

The employee receives:

£123.25 SSP for a complete qualifying week.

Example 2: Employee Earning £100 per Week

Average weekly earnings are £100.

Eighty per cent of £100 is:

£100 × 80% = £80

The lower of £80 and £123.25 is £80.

The employee receives:

£80 SSP for a complete qualifying week.

Under the previous rules, this employee may have earned too little to qualify. Under the post-April 2026 rules, they can qualify, but the payment is limited to 80% of their average weekly earnings.

What Are Average Weekly Earnings?

Average weekly earnings are not always the same as the employee’s current normal salary.

SSP is generally calculated using earnings paid during a relevant period before the sickness began. This period will often cover approximately eight weeks.

The exact calculation depends on:

• whether the employee is paid weekly or monthly;

• the employee’s normal payday;

• the last normal payday before the sickness began;

• how long the employee has worked for the employer;

• whether the employee has irregular earnings.

The calculation normally uses gross earnings treated as employment earnings through payroll.

This may include:

• basic salary;

• overtime;

• commission;

• bonuses;

• holiday pay;

• other payments subject to Class 1 National Insurance.

A bonus paid during the relevant period may affect the calculation even if the work that generated the bonus was performed earlier.

Where the employee has worked for less than eight weeks, special rules may apply using the earnings available since employment began.

What Are Qualifying Days?

SSP is paid only for days on which the employee would normally have been required to work. These are called qualifying days.

For someone who normally works Monday to Friday, those five days will normally be qualifying days.

For someone who normally works Tuesday and Thursday, those two days will normally be qualifying days.

SSP is not automatically divided across seven calendar days.

Where the employee has no regular work pattern, the employer and employee should agree which days will count as qualifying days. Statutory default rules may apply if they cannot agree.

Example: Employee Sick for Three Days

The employee normally works five days per week.

Their weekly SSP rate is £123.25.

The daily rate is:

£123.25 ÷ 5 = £24.65

The employee is sick on Monday, Tuesday and Wednesday.

The SSP payment is:

£24.65 × 3 = £73.95

No three-day waiting period is deducted under the rules applying from 6 April 2026.

SSP Starts From the First Full Qualifying Day

Although the waiting days have been removed, SSP is still based on a full qualifying day of incapacity.

Suppose an employee works most of their normal shift and becomes unwell shortly before the shift ends. That day will not necessarily be treated as a full SSP day.

Payroll must establish:

1. the first full day on which the employee was unable to work;

2. which of those days were qualifying days;

3. the correct daily SSP rate.

The employer should therefore record both the sickness dates and whether the employee worked any part of the relevant shift.

How Long Can SSP Continue?

SSP can normally be paid for up to 28 weeks.

Separate sickness absences may be linked where the gap between them is eight weeks or less.

Linked periods can count towards the same 28-week maximum. A brief return to work does not always create a completely new SSP entitlement.

Example: Linked Sickness Absences

An employee receives SSP for 12 weeks.

They return to work for four weeks and then become sick again.

Because the gap is no more than eight weeks, the periods may be linked.

The employee may have only:

16 weeks of SSP remaining

rather than receiving a new 28-week entitlement.

The exact payroll calculation will depend on previous periods of sickness, qualifying days and any transitional rules.

Reporting Sickness

The employee should notify the employer within the period specified in the employer’s sickness policy.

Where no workplace deadline exists, the employee should normally notify the employer within seven days.

The employer cannot normally impose an unreasonable reporting rule that prevents a valid SSP claim. For example, an employer should not automatically refuse SSP simply because the employee could not report the sickness in person.

The employee should explain:

• that they are unable to work;

• when the sickness began;

• how long they expect the absence to last, where known;

• whether the illness is work-related or pregnancy-related, where relevant.

Self-Certification and Fit Notes

For the first seven calendar days of sickness, the employee can normally self-certify.

Calendar days include:

• weekends;

• bank holidays;

• non-working days.

The employee may use form SC2 or the employer’s own reasonable self-certification procedure.

A fit note can normally be requested once the sickness lasts for more than seven consecutive calendar days.

Fit notes can be issued by authorised healthcare professionals, including:

• doctors;

• registered nurses;

• occupational therapists;

• pharmacists;

• physiotherapists.

A fit note may state that the person is:

not fit for work

or

may be fit for work, subject to changes such as reduced hours, amended duties or workplace adjustments.

A late fit note does not automatically allow the employer to withhold SSP where the employee otherwise qualifies.

Can an Employee Receive SSP From More Than One Employer?

Yes.

Each employment is normally considered separately.

A person with two PAYE jobs may qualify for SSP from both employers where:

• they meet the SSP conditions in each employment;

• the illness prevents them from performing both jobs.

It is also possible to be unfit for one job but still able to perform another.

For example, a back injury may prevent heavy warehouse work but still allow the employee to perform a separate home-based administrative job.

The medical position and the work actually performed must be consistent. The employee should be transparent with both employers.

Who May Not Qualify for SSP?

A person may not qualify where:

• they are genuinely self-employed;

• they have already received 28 weeks of SSP;

• they are currently receiving SMP or Maternity Allowance;

• they failed to report the sickness on time without a reasonable explanation;

• they are outside the relevant employment conditions;

• another statutory exclusion applies.

Where SSP is not payable, or where it is coming to an end, the employer must normally provide form SSP1.

If SSP unexpectedly ends while the employee remains ill, SSP1 should generally be issued within seven days.

Where it is already known that SSP will end before the illness ends, the employer should normally issue SSP1 on or before the beginning of the employee’s 23rd week of SSP.

The employee can then check whether they qualify for Employment and Support Allowance or another benefit.

SSP and Holiday Entitlement

Statutory holiday continues to accrue while an employee is off sick.

This applies even during a long period of sickness.

An employee may ask to take annual leave during a period of sickness. This may be attractive because holiday pay can be higher than SSP.

However, annual leave and sick leave remain separate entitlements.

The employer should not normally force a qualifying employee to use annual leave instead of receiving SSP.

Using annual leave also reduces the employee’s remaining holiday balance.

Can Employers Recover SSP From HMRC?

Under the normal current rules, employers cannot reclaim SSP from HMRC.

SSP remains a cost of the employer.

The payment is processed through PAYE payroll and reported to HMRC, but this does not mean HMRC reimburses the employer.

This is an important difference between SSP and SMP.

Part Two: Statutory Maternity Pay

What Is SMP?

Statutory Maternity Pay is a payroll payment that replaces part of an eligible employee’s earnings before and after childbirth.

SMP can be paid for up to 39 weeks.

The payment structure is:

Weeks 1 to 6: 90% of average weekly earnings.

Weeks 7 to 39: £194.32 per week or 90% of average weekly earnings, whichever is lower.

SMP is paid through the employer’s payroll on the employee’s normal payday.

Income Tax and National Insurance are deducted where applicable.

Maternity Leave and SMP Must Be Checked Separately

An employee can normally qualify for Statutory Maternity Leave from the beginning of employment.

Maternity leave does not normally require:

• 26 weeks of service;

• a minimum salary;

• a minimum number of working hours.

SMP has additional conditions.

A person can therefore have the right to 52 weeks of maternity leave but receive no SMP from the employer.

Where SMP is not available, the employee may be able to claim Maternity Allowance.

Who Qualifies for SMP?

To qualify for SMP, the employee must normally satisfy all of the following conditions.

Employment and payroll condition

The employee must normally be employed and included on the employer’s payroll during the qualifying week.

Continuous-employment condition

The employee must normally have worked continuously for the same employer for at least 26 weeks continuing into the qualifying week.

Earnings condition

Average weekly earnings during the relevant period must normally be at least the Lower Earnings Limit applying at the end of the qualifying week.

Where the relevant 2026–2027 threshold applies, this is normally £129 per week.

Notice condition

The employee must provide the employer with the required notice of maternity leave and the intended SMP start date.

Evidence condition

The employee must provide acceptable evidence of pregnancy, usually a MATB1 certificate or an appropriate letter from a doctor or midwife.

What Is the Qualifying Week?

The qualifying week is:

the 15th week before the expected week of childbirth.

The expected week of childbirth is the Sunday-to-Saturday week in which the baby is expected to be born.

The qualifying week is extremely important because it determines:

• whether the employee has completed 26 weeks of continuous employment;

• whether the employee is still employed by the employer;

• which Lower Earnings Limit applies;

• which pay period is used to calculate average weekly earnings.

Why the Qualifying Week Can Cause Confusion

An employee may have completed 26 weeks of service by the time maternity leave begins but still fail the SMP test.

This happens where they had not yet completed the required service by the qualifying week.

Maternity leave may still be available, but SMP may not be.

The expected due date, qualifying week and employment-start date should therefore be checked before the employer confirms entitlement.

The SMP Earnings Threshold

Unlike SSP, SMP still has a minimum earnings condition.

Average weekly earnings must normally be at least the National Insurance Lower Earnings Limit applying at the end of the qualifying week.

For 2026–2027, the Lower Earnings Limit is £129 per week.

However, the threshold applicable to an individual employee depends on when their qualifying week ended.

For example, if the qualifying week fell in the previous tax year, the earlier Lower Earnings Limit may apply even where maternity leave begins after 6 April 2026.

DCTaxAgent Insight

The SMP threshold is based on the rate applying at the end of the individual employee’s qualifying week, not simply the rate in force when maternity leave begins.

How Are Average Weekly Earnings Calculated for SMP?

Average weekly earnings are usually calculated using gross earnings paid during a relevant period of approximately eight weeks.

For a monthly paid employee, the relevant period will often include the last two normal monthly paydays on or before the end of the qualifying week.

For a weekly paid employee, the calculation will normally cover at least eight weeks of earnings.

The calculation can include:

• salary;

• overtime;

• commission;

• bonuses;

• holiday pay;

• other payments treated as Class 1 National Insurance earnings.

The calculation is based largely on when the employee was paid, not necessarily when the work was performed.

This means that:

• a bonus paid during the relevant period may increase SMP;

• unpaid leave during the relevant period may reduce SMP;

• reduced salary during the relevant period may reduce or remove entitlement;

• a pay rise after the relevant period may not increase SMP in the normal way.

Special rules can apply where a pay rise is awarded after the relevant period but is effective from an earlier date.

How Much SMP Is Paid?

Example 1: Average Weekly Earnings of £600

The employee’s average weekly earnings are £600.

First six weeks

Ninety per cent of £600 is:

£600 × 90% = £540 per week

Remaining 33 weeks

Ninety per cent of earnings is £540.

The statutory standard rate of £194.32 is lower.

The employee therefore receives:

£194.32 per week for the following 33 weeks.

The total gross SMP is:

Six weeks × £540 = £3,240

Thirty-three weeks × £194.32 = £6,412.56

Total SMP: £9,652.56

Example 2: Average Weekly Earnings of £180

Ninety per cent of £180 is:

£180 × 90% = £162

For the first six weeks, the employee receives £162 per week.

For the following 33 weeks, the lower of £194.32 and £162 is £162.

The employee therefore receives:

£162 per week for all 39 weeks.

Total SMP:

£162 × 39 = £6,318

Example 3: Average Weekly Earnings of £128

Suppose the Lower Earnings Limit applying to the qualifying week is £129.

Average weekly earnings of £128 are below the threshold.

The employee will normally fail the SMP earnings condition.

They may still qualify for:

• Statutory Maternity Leave;

• Maternity Allowance.

The employer should provide form SMP1 explaining why SMP cannot be paid.

When Can Maternity Leave Start?

Statutory Maternity Leave can normally begin no earlier than the start of the 11th week before the expected week of childbirth.

The employee chooses the intended start date and informs the employer.

SMP normally starts on the same date as maternity leave.

However, maternity leave and SMP can start automatically in certain circumstances.

Pregnancy-Related Sickness During the Final Four Weeks

Where the employee is absent because of a pregnancy-related illness during the four weeks before the expected week of childbirth, maternity leave and SMP will normally start automatically.

The maternity-pay period normally begins on the day after the first complete day of pregnancy-related sickness during that four-week period.

This rule applies even where the employee originally intended to begin maternity leave later.

The employer must distinguish between:

pregnancy-related sickness;

and

ordinary sickness unrelated to pregnancy.

Where the illness is not pregnancy-related, SSP may continue until the normal maternity-pay start date, subject to the SSP conditions.

What Happens if the Baby Is Born Early?

Where the baby is born before the employee’s planned maternity-leave start date, maternity leave and SMP normally begin automatically.

The maternity-pay period usually starts on the day after the birth.

Special rules can protect SMP entitlement where the baby is born before or during the qualifying week.

The employer should obtain the actual date of birth and revise the maternity-pay schedule where necessary.

How Much Notice Must the Employee Give?

Notice for Maternity Leave

The employee should normally tell the employer, no later than 15 weeks before the expected week of childbirth:

• that they are pregnant;

• when the baby is expected;

• when they want maternity leave to start.

The employer must normally confirm the expected maternity-leave start and end dates in writing within 28 days.

Notice for SMP

The employee should normally provide at least 28 days’ notice of the date on which they want SMP to begin.

Late notice may be accepted where it was not reasonably practicable to provide it earlier and the employee gives notice as soon as reasonably possible.

What Pregnancy Evidence Is Required?

The employee must provide proof of pregnancy to receive SMP.

This will normally be:

• a MATB1 certificate;

• another acceptable letter from a doctor or midwife.

The MATB1 certificate is normally issued no earlier than 20 weeks before the expected week of childbirth.

Proof should generally be provided within 21 days of the SMP start date.

Where the baby is born early or there is another reasonable explanation, the evidence should be provided as soon as possible.

Proof of pregnancy is required for SMP, but it is not normally required merely to exercise the right to maternity leave.

What Happens if the Employee Does Not Qualify for SMP?

Where the employee does not qualify, the employer must provide form SMP1.

SMP1 should explain why SMP cannot be paid.

The employer should normally provide it within seven days of making the decision.

The employee may then apply for Maternity Allowance.

The employer should not simply stop the process without providing the form because SMP1 is normally required as part of the Maternity Allowance application.

Maternity Allowance

Maternity Allowance may be available to someone who:

• is employed but does not qualify for SMP;

• is self-employed;

• recently stopped working;

• performed qualifying unpaid work for a spouse’s or civil partner’s business.

An employed or self-employed person will normally need to have worked or been registered as self-employed for at least 26 weeks during the 66 weeks before the baby is due.

An employed person must generally have earned at least £30 per week in at least 13 of those weeks.

The 13 weeks do not have to be consecutive.

For 2026–2027, an employed person or someone who recently stopped working may receive:

£194.32 per week or 90% of average weekly earnings, whichever is lower, for up to 39 weeks.

A self-employed person may receive between £27 and £194.32 per week, depending on their National Insurance record and circumstances.

Maternity Allowance is paid by the government, not through the employer’s payroll.

Can SMP Continue if the Employee Leaves the Job?

Yes.

Once the employee has satisfied the SMP qualifying conditions, leaving employment does not automatically remove the entitlement.

SMP may continue where the employee:

• resigns;

• is made redundant;

• has a fixed-term contract that ends;

• decides not to return after maternity leave.

The former employer may remain responsible for paying SMP.

The employee does not have to repay statutory SMP simply because they do not return to work.

However, a separate repayment condition may apply to enhanced contractual maternity pay.

Statutory SMP and Enhanced Maternity Pay

Some employers offer enhanced maternity pay in addition to the statutory minimum.

Examples include:

• full salary for a number of weeks;

• half salary plus SMP;

• a longer period at an enhanced rate;

• a return-to-work payment.

The employer may require the employee to repay some or all of the enhanced contractual amount where the employee does not return to work or leaves shortly afterwards.

Any repayment requirement should be clearly included in:

• the employment contract;

• the maternity policy;

• a separate written agreement.

Statutory SMP itself does not have to be repaid merely because the employee does not return.

Keeping in Touch Days

An employee can normally work for the employer for up to 10 Keeping in Touch days during maternity leave.

These are commonly called KIT days.

KIT days do not normally bring maternity leave or SMP to an end.

They are optional.

The employer cannot force the employee to work a KIT day, and the employee cannot insist that the employer provides one.

Before a KIT day, the employer and employee should agree:

• the date;

• the work to be performed;

• the hours;

• the payment;

• how the payment interacts with SMP.

Even one hour of work can count as a complete KIT day.

KIT days cannot normally be used during the compulsory maternity-leave period immediately after childbirth.

Working more than 10 KIT days may affect SMP and maternity leave.

Working for Another Employer During the SMP Period

The rules can become complicated where the employee works for another employer during the maternity-pay period.

The result depends on whether the second employment existed during the qualifying week.

Where the employee already worked for the second employer during the qualifying week, work for that employer may not automatically stop SMP from the first employer.

Starting work for a completely new employer after the qualifying week or after childbirth may stop SMP for the weeks in which the new work is performed.

Before starting another job, the employee should check:

• when the second employment began;

• whether it existed during the qualifying week;

• whether the work is before or after childbirth;

• whether the second contract later ends.

Employment Rights During Maternity Leave

During maternity leave, the employment contract normally continues.

The employee will not normally receive their usual salary unless enhanced maternity pay applies, but many other contractual and statutory rights continue.

These can include:

• statutory holiday accrual;

• contractual benefits other than normal remuneration;

• pay rises;

• pension rights during paid maternity leave;

• protection against maternity discrimination;

• the right to return to work;

• redundancy protection under the applicable rules.

The employee must take at least:

two weeks of compulsory maternity leave after childbirth;

or

four weeks where they work in a factory.

Holiday cannot normally be taken at the same time as maternity leave.

Accrued holiday is therefore normally used before maternity leave begins or after it ends.

The Right to Return to Work

Where the employee returns after no more than 26 weeks of maternity leave, they will normally have the right to return to the same job.

Where the employee returns after more than 26 weeks, they should still normally return to the same job unless this is not reasonably practicable.

Where returning to the same role is not reasonably practicable, the employer must normally offer a suitable alternative role.

The alternative role should have terms that are no less favourable.

An employee who wants to return earlier or later than the previously agreed date should normally give at least eight weeks’ notice.

How SSP and SMP Interact

SSP and SMP are not normally paid for the same period.

A person receiving SMP or Maternity Allowance is generally excluded from receiving SSP for that maternity-pay period.

Sickness Before SMP Begins

An employee may receive SSP before the maternity-pay period begins.

Where the sickness is unrelated to pregnancy, SSP can normally continue until maternity leave starts.

Where the sickness is pregnancy-related and occurs during the final four weeks before the expected week of childbirth, SMP and maternity leave normally begin automatically.

Sickness After Returning to Work

Where an employee returns to work while the original maternity-pay period remains open and later becomes ill, the position can be more complicated.

In some circumstances, SMP may continue to take priority unless the maternity-pay period has formally ended.

The employer should not simply switch from SMP to SSP without checking the statutory-payment rules and payroll reporting requirements.

Employer Responsibilities for SSP

The employer should:

1. confirm whether the worker qualifies;

2. establish the sickness start date;

3. identify the qualifying days;

4. calculate average weekly earnings;

5. apply the lower of 80% or £123.25;

6. pay SSP through payroll;

7. deduct tax and National Insurance where applicable;

8. retain the necessary records;

9. issue SSP1 where entitlement does not exist or is ending.

SSP cannot normally be reclaimed from HMRC.

Employer Responsibilities for SMP

The employer should:

1. identify the expected week of childbirth;

2. calculate the qualifying week;

3. check 26 weeks of continuous employment;

4. calculate average weekly earnings;

5. identify the applicable Lower Earnings Limit;

6. obtain the required notice;

7. obtain acceptable evidence of pregnancy;

8. calculate the first six weeks correctly;

9. calculate the following 33 weeks correctly;

10. pay SMP through payroll;

11. report it through PAYE;

12. recover the permitted amount from HMRC;

13. issue SMP1 where the employee does not qualify.

Most employers can normally recover 92% of qualifying statutory maternity payments.

A qualifying small employer can normally recover 109% where the relevant total Class 1 National Insurance liability for the previous tax year was £45,000 or less.

The additional recovery is known as Small Employers’ Relief compensation.

What Happens if the Employer Cannot Afford to Pay?

Financial difficulty does not normally remove the employer’s responsibility to pay SSP or SMP.

Where the employer cannot make the statutory payment, HMRC may need to become involved.

The employee can contact HMRC’s Statutory Payment Disputes Team where:

• the employer refuses to pay;

• the employer calculates the payment incorrectly;

• the business has stopped trading;

• the employer claims it cannot afford the payment;

• there is a dispute over entitlement.

Where a business becomes insolvent or ceases trading, HMRC may take over certain statutory payments in appropriate circumstances.

Directors of Their Own Limited Companies

Small-company directors frequently misunderstand SSP and SMP because they control both the company and the payroll.

Legally, the company and the director remain separate.

The director is the employee making the claim.

The company is the employer responsible for checking eligibility, keeping records and processing the payment.

SSP for a Director

The company must establish that the director:

• is genuinely employed;

• has started working;

• is unable to perform their employment duties;

• has qualifying payroll earnings;

• has followed the sickness-reporting procedure;

• has identifiable qualifying days.

Since April 2026, there is no minimum earnings threshold.

However, a low salary may reduce SSP because the payment cannot exceed 80% of average weekly earnings.

SMP for a Director

A director must still satisfy:

• the 26-week continuous-employment condition;

• the qualifying-week condition;

• the minimum average-weekly-earnings condition;

• the notice requirements;

• the evidence requirements.

A director who receives a small salary and large dividends may fail the SMP earnings test.

Dividends do not replace the missing PAYE earnings.

The company cannot create entitlement retrospectively by processing artificial salary after the relevant period has ended.

Common Mistakes

Assuming SSP Is Always £123.25

£123.25 is the maximum weekly statutory rate for 2026–2027.

Where 80% of the employee’s average weekly earnings is lower, the employee receives the lower amount.

Still Applying the Three Waiting Days

For sickness absences covered by the rules from 6 April 2026, SSP begins from the first full qualifying day.

Continuing to deduct three unpaid waiting days can create an underpayment.

Still Applying an SSP Earnings Threshold

The Lower Earnings Limit no longer determines SSP eligibility under the post-April 2026 rules.

However, it remains relevant for SMP and other statutory family payments.

Confusing Maternity Leave With SMP

Statutory Maternity Leave is normally available from the start of employment.

SMP requires:

• sufficient continuous employment;

• employment during the qualifying week;

• sufficient average weekly earnings;

• correct notice;

• acceptable evidence.

Using Current Salary Instead of Relevant-Period Earnings

SSP and SMP both use statutory average-weekly-earnings calculations.

Current salary alone does not always determine the payment.

A bonus, overtime, unpaid leave or reduced pay during the relevant period can change the result.

Forgetting That SMP Has Two Payment Stages

The first six weeks are paid at 90% of average weekly earnings.

The following 33 weeks are paid at the lower of the standard weekly rate or 90% of average weekly earnings.

Assuming SMP Must Be Repaid if the Employee Does Not Return

Statutory SMP does not have to be repaid merely because the employee resigns or does not return to work.

A repayment clause may apply only to the enhanced contractual element.

Paying SSP and SMP for the Same Period

SSP and SMP are not normally payable together.

Pregnancy-related sickness close to the expected week of childbirth may automatically trigger maternity leave and SMP.

Five Practical Examples

Example 1: Part-Time Employee Earning £90 per Week

The employee works two days per week.

They are sick for both qualifying days.

Average weekly earnings are £90.

Eighty per cent is:

£90 × 80% = £72

Weekly SSP is therefore £72.

Daily SSP is:

£72 ÷ 2 = £36

The employee receives:

£72 SSP for the complete qualifying week.

Example 2: Full-Time Employee Sick for Three Days

The employee normally works Monday to Friday and earns £500 per week.

The weekly statutory rate is £123.25 because this is lower than 80% of their earnings.

Daily SSP is:

£123.25 ÷ 5 = £24.65

For three qualifying sickness days:

£24.65 × 3 = £73.95

There are no waiting days under the current rules.

Example 3: Employee Has Only 20 Weeks’ Service During the Qualifying Week

The employee may still qualify for Statutory Maternity Leave.

However, they do not satisfy the 26-week continuous-employment requirement for SMP.

The employer should provide SMP1.

The employee should then check eligibility for Maternity Allowance.

Example 4: Employee Earns £700 per Week

For the first six weeks:

£700 × 90% = £630 per week

For the following 33 weeks:

£194.32 per week

The employer may offer enhanced maternity pay, but the statutory minimum is calculated as above.

Example 5: Director With a Low Salary and High Dividends

A director receives:

PAYE salary of £100 per week;

and

substantial dividends.

For SSP, the director may qualify because there is no longer a minimum earnings threshold.

However, SSP may be limited to:

£100 × 80% = £80 per week

For SMP, average payroll earnings of £100 may be below the applicable Lower Earnings Limit.

The dividends do not count as qualifying employment earnings for this test.

The director may therefore qualify for SSP but fail the SMP earnings condition.

Employee Checklist

Before relying on SSP or SMP, the employee should check:

1. employment status;

2. payroll earnings during the relevant period;

3. sickness or maternity notification deadlines;

4. the employer’s contractual policies;

5. medical or pregnancy evidence requirements;

6. payslip calculations;

7. whether enhanced contractual pay is available;

8. whether another employment affects entitlement;

9. whether Maternity Allowance should be claimed;

10. whether a disputed decision should be referred to HMRC or Acas.

Employer Checklist

Before processing SSP or SMP, the employer should confirm:

1. which statutory rules apply to the date of absence;

2. the relevant average-weekly-earnings period;

3. SSP qualifying days;

4. the expected week of childbirth;

5. the SMP qualifying week;

6. continuous employment;

7. the applicable Lower Earnings Limit;

8. the notice and evidence supplied;

9. whether another employment affects payment;

10. the correct payroll reporting;

11. the amount recoverable from HMRC;

12. whether SSP1 or SMP1 must be issued;

13. whether contractual enhancements apply.

Verdict: Similar Payroll Names, Completely Different Tests

SSP and SMP are both statutory payments processed through payroll, but their eligibility rules are not interchangeable.

The essential SSP rules are:

No minimum earnings threshold from 6 April 2026.

Payment begins from the first full qualifying sickness day.

The weekly amount is the lower of 80% of average weekly earnings or £123.25.

SSP can normally continue for up to 28 weeks.

The essential SMP rules are:

The employee normally needs 26 weeks of continuous employment continuing into the qualifying week.

Average weekly earnings must meet the applicable Lower Earnings Limit.

The first six weeks are paid at 90% of average weekly earnings.

The following 33 weeks are paid at £194.32 or 90%, whichever is lower.

Maternity leave can last for 52 weeks, but SMP normally lasts for only 39 weeks.

The most important practical lesson is that statutory payments depend on:

• precise dates;

• payroll periods;

• average weekly earnings;

• employment status;

• qualifying days;

• the maternity qualifying week.

They are not determined simply by the employee’s current salary or by how long they expect to be absent.

The Golden Rule

Identify the relevant dates and calculate average weekly earnings before confirming entitlement or quoting any statutory payment.

How DCTaxAgent Can Help

DCTaxAgent can assist employers and company directors with the payroll and tax elements of SSP and SMP, including:

• checking average weekly earnings;

• calculating SSP under the post-April 2026 rules;

• identifying SSP qualifying days;

• establishing the maternity qualifying week;

• checking SMP earnings and service conditions;

• processing statutory payments through payroll;

• preparing SSP1 or SMP1 where required;

• calculating HMRC recovery;

• reviewing payroll records for company directors;

• correcting statutory-payment payroll errors.

Employment-law questions involving dismissal, discrimination, reasonable adjustments, maternity protection or workplace disputes may require support from Acas, Citizens Advice, a trade union or an employment solicitor.

WhatsApp: 07587 532646
Website: www.dctaxagent.co.uk

Disclaimer

This article is intended for general, informational and educational purposes.

It does not constitute employment-law advice, legal advice, tax advice or payroll advice tailored to an individual situation.

Exact entitlement depends on employment status, employment and absence dates, payroll frequency, average weekly earnings, the expected week of childbirth, the qualifying week, other employments, contractual policies and the evidence supplied.

Statutory rates normally change each tax year.

The information reflects the official rules and guidance available on 30 July 2026.

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