Statutory payments are payments that employers must make to employees when certain situations occur — such as sickness, maternity, paternity or adoption leave.
These payments follow strict rules, eligibility criteria and calculation methods, and employers are legally responsible for applying them correctly.
This guide explains each type of statutory payment in plain English.
What Counts as a Statutory Payment?
In UK payroll, statutory payments include:
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SSP – Statutory Sick Pay
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SMP – Statutory Maternity Pay
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SPP – Statutory Paternity Pay
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SAP – Statutory Adoption Pay
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ShPP – Statutory Shared Parental Pay
Employers must calculate, pay and report these correctly through payroll and RTI.
1. Statutory Sick Pay (SSP)
SSP is paid to employees who are too ill to work.
Eligibility:
Employees must:
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Earn at least the Lower Earnings Limit
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Be off sick for at least 4 consecutive days
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Provide evidence if required (e.g., fit note after 7 days)
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Be classed as an employee for PAYE purposes
Amount:
SSP is paid at a fixed weekly rate set by the government.
Key rules:
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First 3 days are usually waiting days (unpaid unless company sick pay applies)
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Employers cannot reclaim SSP except under rare historic schemes
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Recorded and reported through payroll
2. Statutory Maternity Pay (SMP)
SMP is paid to eligible employees who take maternity leave.
Eligibility:
Employees must:
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Have been employed continuously for at least 26 weeks by the qualifying week
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Earn above the Lower Earnings Limit
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Provide the MATB1 form
Amount:
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First 6 weeks: 90% of average earnings
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Next 33 weeks: Lower of 90% or the statutory weekly rate
Reclaiming SMP:
Most employers can reclaim 92% of SMP.
Small employers may reclaim 103%.
3. Statutory Paternity Pay (SPP)
SPP is paid to eligible partners taking paternity leave.
Eligibility:
Employees must:
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Have worked for you for 26 weeks by the qualifying week
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Earn above the Lower Earnings Limit
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Be responsible for the child’s upbringing
Amount:
Paid for up to 2 weeks at the statutory weekly rate or 90% of average earnings (whichever is lower).
Reclaiming SPP:
Generally reclaimable at 92% (103% for small employers).
4. Statutory Adoption Pay (SAP)
SAP is paid to employees adopting a child.
Eligibility:
Employees must:
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Have worked for you for at least 26 weeks by the matching week
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Earn above the Lower Earnings Limit
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Provide an adoption matching certificate
Amount:
Same as SMP:
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First 6 weeks: 90% of average earnings
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Next 33 weeks: Statutory rate or 90%, whichever is lower
Reclaiming SAP:
Same as SMP — 92% or 103%.
5. Statutory Shared Parental Pay (ShPP)
ShPP allows parents to share maternity or adoption leave and pay.
Eligibility:
Employees must:
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Meet continuity of employment and earnings tests
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Share care of the child
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Provide correct notice
Amount:
Paid at the statutory weekly rate or 90% of average earnings (whichever is lower).
How Statutory Payments Are Calculated
All statutory payments rely on:
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The average weekly earnings (AWE) calculation
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A specific qualifying week or matching week
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Correct application of government set rates
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Employment status and earnings thresholds
Errors in AWE or eligibility lead to incorrect payments.
Reporting Statutory Payments to HMRC
All statutory payments must be reported through RTI:
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Included on the FPS
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Recoveries claimed on the EPS (if applicable)
Incorrect reporting is a common cause of HMRC queries.
Employer Responsibilities
Employers must:
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Assess eligibility correctly
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Calculate payments accurately
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Keep records for at least 3 years
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Issue written confirmation when statutory leave begins
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Reclaim statutory payments (if eligible)
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Report all payments correctly
These responsibilities cannot be delegated — even if payroll is outsourced.
Common Statutory Payment Mistakes
Employers often make errors with:
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Incorrect AWE calculations
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Not reclaiming SMP/SPP/SAP correctly
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Applying statutory rates instead of 90% when required
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Paying too much or too little company-enhanced pay
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Missing deadlines for notice or documentation
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Not applying statutory leave rules correctly
These mistakes can lead to employee complaints and costly corrections.
How We Help Employers Handle Statutory Payments
Your Payroll Team can support you with:
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Calculating SMP, SPP, SAP and ShPP
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SSP rules and sickness management
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Checking eligibility
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AWE calculations
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RTI reporting and recoveries
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Correcting historic errors
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Payroll audits and compliance support
FAQ: Statutory Payments
Do statutory payments apply to zero-hours workers?
Yes — if they meet the eligibility criteria.
Can statutory payments overlap?
In most cases, no — the type of leave determines the payment that applies.
Do employers need to top up statutory pay?
No, unless your company has an enhanced scheme.
What happens if we miscalculate statutory payments?
You must correct them and may need to adjust future payments or RTI submissions.