What is statutory maternity pay?

When an employee informs an employer of a pregnancy and upcoming maternity leave, it triggers a set of statutory rights and obligations that many first-time employers are unfamiliar with. Statutory Maternity Pay is the minimum payment employers are required to make to eligible employees during maternity leave — and understanding how it works is essential for any employer managing a pregnant employee's leave.

Statutory Maternity Pay is paid by the employer to eligible employees during a defined period of maternity leave, at rates set by the government. The payment rate and eligibility criteria are set by legislation and reviewed periodically, so current figures should always be verified with HMRC or an accountant. Employers can recover most of the Statutory Maternity Pay they pay from HMRC, which significantly reduces the net cost of the entitlement.

Beyond Statutory Maternity Pay, employees on maternity leave retain a range of other employment rights, including the right to return to the same or an equivalent role and protection from unfair treatment because of their pregnancy. Managing maternity leave incorrectly is a common source of employment claims. Our guide to maternity leave and pay for UK employers covers the full obligations and how to handle the process correctly.