Statutory Pay
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Learn all about statutory pay
Statutory pay is the minimum amount that employers must pay eligible employees during certain life events, such as sickness, maternity, paternity, adoption or shared parental leave. The UK government sets these payments, and they help employees manage time away from work while protecting their income. This guide explains how statutory pay works, who qualifies, what employers need to pay, and how to stay compliant with HMRC rules.
What Is Statutory Pay?
Statutory payments are legal minimum payments that UK employers must provide to eligible employees in specific situations. They include Statutory Sick Pay (SSP) for employees who are off work due to illness, Statutory Maternity Pay (SMP) for eligible employees on maternity leave, Statutory Paternity Pay (SPP) for eligible partners taking paternity leave, Statutory Adoption Pay (SAP) for employees adopting a child, and Statutory Shared Parental Pay (ShPP) for parents sharing leave following the birth or adoption of a child. Each type of statutory payment has its own qualifying rules, payment rates, and maximum payment period. Employers must ensure these payments are calculated and paid correctly to remain compliant with UK employment law and HMRC requirements.
Getting Started with Statutory Pay
It is important to understand which type of statutory pay applies, who qualifies, and how to calculate the correct amount. Employers must check each employee’s eligibility, for example whether they have worked for you for long enough and whether they earn at least the minimum required amount.
For statutory sick pay, maternity, paternity, adoption or shared parental pay, you will need to:
Check qualifying criteria
Confirm the employee meets the length of service and minimum earnings thresholds.
Calculate payments
Use HMRC's current statutory pay rates to work out what you owe each
Report and reclaim (if applicable):
Report payments through your payroll system and claim back some statutory payments if you are entitled (for example, small employers can reclaim some SMP).
Keep records:
Keep detailed payroll records to show payments and recovery claims in case HMRC asks for evidence.
Understanding the basics helps employers stay compliant, support staff properly and avoid costly mistakes. Payments may be required from an employer if an employee is away from work for a variety of reasons. There are detailed conditions an employee must meet to qualify for any of these statutory payments. Employees are only eligible for a statutory payment if their average weekly earnings are at least the lower earnings limit (this requirement does not apply to Sick Pay from 6 April 2026).
2026/27
In certain circumstances, statutory payments may be paid at 90% of average weekly earnings (80% for sick pay) throughout the payment period. This applies where 90%/80% of weekly earnings is less than the standard rate.
2025/26
Apart from Statutory Sick Pay, statutory payments may be paid at 90% of average weekly earnings throughout the payment period in certain circumstances. This applies where 90% of weekly earnings is less than the standard rate of £187.18.
Statutory Sick Pay
Payments may be required from an employer if an employee is too ill to work. SSP is generally payable for a period of up to 28 weeks.
Statutory Maternity Pay
Payments may be required from an employer when an employee takes time off to have a baby. SMP is payable for a period of up to 39 weeks.
Statutory Paternity Pay
Payments may be required from an employer when an employee takes time off during their partner's Statutory Maternity Pay period. Payment is for either one or two complete weeks.
Shared Parental Pay
Payments may be required from an employer when an employee takes time off after the mother has cut short her period of SMP. Payment is for up to a maximum of 37 weeks and depends on the mother's unused SMP period.
Statutory Adoption Pay
Payments may be required from an employer when an employee takes time off to adopt a child. Payment is for a period of up to 39 weeks.
Statutory Parental Bereavement Pay
Payments may be required from an employer when parents take time off following the death of a child or a stillbirth. Payment is for up to a maximum of two weeks.
Who Qualifies for Statutory Pay?
Not every employee automatically qualifies; they must meet certain rules for each type. This is how eligibility generally works:
Length of Employment
Eligibility varies by statutory payment. From 6 April 2026, Paternity Leave is a day-one employment right, although Statutory Paternity Pay still has separate earnings and eligibility conditions. Other statutory payments, such as Statutory Maternity Pay and Statutory Adoption Pay, have their own qualifying-period and earnings rules.
Minimum Earnings
Employees must earn at least the Lower Earnings Limit (LEL), which HMRC sets each year. If their average earnings are below this limit, they will not qualify, but they may still be able to get other benefits.
Notice and Evidence
Employees must give proper notice and provide evidence if required, for example a fit note for SSP or a MAT B1 form for SMP.
Employment Status
Statutory pay usually applies to employees and some workers on contracts. Self-employed people do not qualify, but may get other support instead (such as Maternity Allowance). Employers must check the specific rules for each type of statutory pay, so that payments are only made to employees who qualify and errors are avoided when reclaiming costs through payroll.
How to Pay Statutory Pay
Once you know an employee qualifies, paying correctly is essential to stay compliant with employment law and HMRC rules.
Calculate the Correct Amount
Use HMRC's latest rates for sick pay, maternity, paternity, adoption or shared parental leave. Rates often change every tax year, so double-check that you are using the right figures.
Pay Through Payroll
It is normally paid through your usual payroll process. It should appear clearly on the employee's payslip and is taxed as normal pay (income tax and National Insurance usually still apply).
Reclaim What You Can
Employers can usually reclaim 92% of qualifying statutory payments. Employers eligible for Small Employers' Relief can reclaim 109%. Statutory Sick Pay cannot be reclaimed from HMRC. Report what you reclaim through your payroll software or EPS (Employer Payment Summary).
Keep Records
Keep detailed records of how you worked out the payments, proof of eligibility and any recovery claims. HMRC may check these if you are audited.