Statutory Sick Pay (SSP) and Maternity Pay (SMP)
SSP and SMP for UK employers: eligibility, current rates, and the recovery rules through PAYE.
Statutory Sick Pay (SSP) and Statutory Maternity Pay (SMP) are payroll obligations that every UK employer needs to handle correctly, even if no current employee is using them. SSP is funded entirely by the employer, but SMP is largely recoverable, and small employers can recover 103% of SMP under Small Employers’ Relief.
Statutory Sick Pay essentials
SSP is paid for up to 28 weeks of sickness, after the first three “waiting days” of any period of incapacity for work (PIW).
| Item | 2024-25 |
|---|---|
| Weekly rate | £116.75 |
| Maximum duration | 28 weeks |
| Waiting days | 3 |
| Earnings threshold | £123 average per week |
| Employer recovery | None (since 2014) |
To qualify, the employee must have been sick for four or more days in a row, including non-working days, and earn at least the lower earnings limit. SSP is taxable through PAYE and subject to NIC.
Statutory Maternity Pay essentials
SMP runs for up to 39 weeks, with payments tapering after the first six weeks.
| Period | Rate |
|---|---|
| First 6 weeks | 90% of average weekly earnings |
| Next 33 weeks | Lower of £184.03 or 90% of AWE |
| Weeks 40–52 | Unpaid (statutory maternity leave continues) |
Eligibility requires 26 weeks’ continuous service by the qualifying week (15th week before expected birth) and average weekly earnings above the lower earnings limit.
Recovery and Small Employers’ Relief
Most statutory parental payments — SMP, SAP, SPP, ShPP and SPBP — are partly recoverable through PAYE.
| Employer size | Recovery |
|---|---|
| Small (Class 1 NIC ≤ £45,000 in qualifying year) | 103% of SMP/SAP/SPP/ShPP/SPBP |
| All other employers | 92% of SMP/SAP/SPP/ShPP/SPBP |
| SSP | 0% |
| Statutory Neonatal Care Pay (from 2026) | Same as SMP rules |
You reclaim by reducing the PAYE payment to HMRC each month — set the recovery on the EPS under “statutory recovery and compensation”.
Operational checklist
- Capture and keep SC2 self-certification for first 7 days of sickness
- Get MATB1 for SMP (issued 20 weeks before expected birth)
- Recalculate average weekly earnings for each parental claim
- Set the right statutory payment indicators on the FPS
- Reclaim through the EPS; never apply directly to your bank
- Keep records for 3 years after the end of the relevant tax year
- Run a payroll routine each month to reconcile
Final pointers
Get the average weekly earnings calculation right and the rest follows. Pair this with our PAYE Real Time Information guide, the holiday pay calculation article, and the employer National Insurance explainer. Cross-check rates each year on GOV.UK statutory pay rates . See pricing for payroll software that handles statutory payments and recovery.