Statutory payments

There are now several statutory payments associated with childbirth and young children: maternity pay, paternity pay, adoption pay, parental bereavement pay, neonatal care pay and shared parental pay.

Employers can usually reclaim 92% of these statutory amounts paid to employees. However, employers can claim a higher amount if they qualify for small employers’ relief (SER). The employer must have paid £45,000 or less in Class 1 NICs (ignoring the employment allowance) in the last complete tax year to qualify for SER. For 2025/26, a business that meets the criteria for SER can claim 108.5%. This will increase to 109% for 2026/27.

If you have any doubts over what statutory payments you should be making, or how much you can reclaim, please get in touch.