When an employee takes time off work to have a baby, they can qualify for Statutory Maternity Pay (SMP).

Eligibility

To qualify for SMP an employee must:

• Give the correct notice, gov.uk can confirm what this is
• Provide proof they're pregnant
• Be on your payroll in the Qualifying week. The qualifying week is the 15th week before the expected week of childbirth
• Work in their employment continuously for at least 26 weeks up to any day in the qualifying week
• Earn on average at least [BCB:244:UKI Payroll LEL value:ECB] (gross) in an eight week 'relevant period'

In line with HMRC guidance, you can process SMP in Sage 50 Payroll for employee records with gender set to female or male.

You can find further information about eligibility for SMP at gov.uk.

Entitlement

For employees who qualify, SMP is payable for 39 weeks. The SMP consists of:

• Six weeks at the higher rate, which is 90% of the employee's average weekly earnings
• 33 weeks at the standard rate, which is the lesser amount of 90% of the employee's average weekly earnings or [BCB:246:UKI Payroll Statutory weekly rate:ECB] per week

For more information about SMP entitlement visit gov.uk.

TIP: Whether you pay any further wages on top of the statutory requirement depends upon the employee's contract of employment. You're under no statutory obligation to pay anything further.