Welcoming a new addition to the family is an exciting milestone, but for businesses and employees alike, the “paperwork” side of pregnancy can feel overwhelming. Between statutory notice periods and complex pay calculations, there is a lot to get right.
At Hewitt’s Payroll, we believe compliance should be simple. This guide outlines everything you need to know about Maternity Leave and Pay for the 2026/27 tax year.
Statutory Maternity Leave (SML)
Every employed pregnant woman is entitled to 52 weeks of Statutory Maternity Leave. This is a “day one” right—there is no minimum length of service required to take the time off.
How the leave is structured:
- Ordinary Maternity Leave: The first 26 weeks.
- Additional Maternity Leave: The following 26 weeks.
- Compulsory Leave: By law, an employee must take at least 2 weeks of leave following the birth (4 weeks if they work in a factory setting).
When can leave start? The earliest leave can begin is 11 weeks before the expected week of childbirth, unless the baby is born early or the employee is off with a pregnancy-related illness in the four weeks before the due date.
Statutory Maternity Pay (SMP)
While leave is a right for all, Statutory Maternity Pay (SMP) is subject to specific eligibility criteria. It is paid for a maximum of 39 weeks.
Eligibility Requirements
To qualify for SMP, the employee must:
- Have worked for you continuously for at least 26 weeks up to the ‘qualifying week’ (the 15th week before the baby is due).
- Earn an average of at least £129 per week (the Lower Earnings Limit for 2026/27).
- Provide the correct notice and medical evidence (the MAT B1 form).
The 2026/27 SMP Rates
SMP is calculated to ensure the employee receives a percentage of their normal earnings:
| Period of Leave | Weekly Payment Rate |
| First 6 Weeks | 90% of average weekly earnings (no cap). |
| Next 33 Weeks | £194.32 or 90% of average weekly earnings (whichever is lower). |
Note: As an employer, you are responsible for deducting Tax and National Insurance from these payments just like a regular salary.
Key Obligations & “KIT” Days
The relationship between employer and employee continues throughout the leave period. Here are two critical areas to manage:
Keeping in Touch (KIT) Days
Employees can work for up to 10 days during their maternity leave without it affecting their SMP or ending their leave. These are called KIT days. They are entirely optional and must be agreed upon by both parties. They are a fantastic way to involve the employee in training or team updates before their formal return.
Employment Rights
During maternity leave, an employee’s employment rights are protected. This includes:
- Accruing holiday pay.
- The right to pay rises or improvements in tea-and-coffee terms.
- The right to return to their original job (or a similar role if they take more than 26 weeks).
How Employers Reclaim Costs
One of the biggest concerns for small business owners is the financial impact of SMP. Fortunately, most employers can reclaim a significant portion of the payments from HMRC.
- Standard Reclaim: You can usually reclaim 92% of the SMP paid.
- Small Employers’ Relief: If your total annual National Insurance contributions are £45,000 or less, you can reclaim 100% plus 3% compensation.
How Hewitt’s Payroll Simplifies the Process
Calculating “Average Weekly Earnings” isn’t always straightforward—it involves looking back at a specific 8-week period and accounting for bonuses or overtime.
We take the weight off your shoulders by:
- Calculating exact SMP entitlements and schedules.
- Processing the recovery of SMP from HMRC on your behalf.
- Ensuring your payroll software is updated with the latest 2026 statutory rates.
- Managing the transition for employees moving to Shared Parental Leave.