When planning a family, many employees look for enhanced maternity pay, often called occupational maternity pay (OMP), which is a contractual benefit from an employer that tops up the statutory legal minimum to provide full or partial salary replacement.

In the UK, statutory parental leave rules provide a legal safety net, but many companies choose to offer contractual top-ups to support their staff during family leave.

Key Takeaways

• Enhanced maternity pay acts as an employer-funded contractual top-up that sits directly on top of the UK statutory minimum payment baseline.
• The statutory baseline for 2026/27 guarantees 90% of earnings for six weeks, followed by £194.32 weekly for thirty-three additional weeks.
• Private sector companies offer an average of eighteen weeks full pay, whereas the public sector relies on standardized contractual frameworks.
• Resigning during leave allows employers to claw back contractual top-ups, whereas statutory payments remain completely protected by law.

What is enhanced maternity pay?

In the UK, enhanced maternity pay is a contractual benefit where an employer provides salary top-ups above the legal statutory minimum. While Statutory Maternity Pay (SMP) covers 39 weeks at standard rates, enhanced schemes often bridge the gap to provide 100% of full wages for an agreed initial period.

Total Maternity Leave (52 Weeks)

1. Paid Leave (39 Weeks Total)
   • Enhanced Portion (e.g., Weeks 1–18): Full salary top-up
   • Statutory Only (e.g., Weeks 19–39): £194.32 / week
2. Unpaid Leave (13 Weeks)
   • No Pay / Leave Only (Weeks 40–52)

The fundamental purpose of enhanced maternity pay is to reduce the financial strain associated with taking time off work to care for a newborn. Employers deliver this benefit through bespoke employment contracts, staff handbooks, or collective bargaining agreements.

Statutory Maternity Pay vs Enhanced Maternity Pay

To evaluate parental benefit structures effectively, it helps to review how statutory provisions compare to enhanced schemes side-by-side.

Feature / Metric	Statutory Maternity Pay (SMP)	Enhanced Maternity Pay (OMP)
Legal Basis	Enshrined in UK employment law.	Contractual benefit set by employer.
Pay Rate (Weeks 1–6)	90% of Average Weekly Earnings (AWE).	Frequently topped up to 100% of normal salary.
Pay Rate (Weeks 7–39)	£194.32/wk or 90% AWE (whichever is lower).	Varied: Full pay, half pay + SMP, or phased reductions.
Duration of Payment	Exactly 39 weeks (13 weeks unpaid).	Varies by company (typically 12 to 26 weeks enhanced).
Minimum Service Required	26 weeks by the Qualifying Week.	Defined by contract (e.g., 1 to 2 years continuous service).
Repayment Risk	Cannot be reclaimed by the employer.	May require repayment if worker fails to return.
Employer Reclaim	Reclaim 92% to 103% from HMRC.	Contractual top-up portion cannot be reclaimed from HMRC.

What is the average enhanced maternity pay in the UK?

In practice, maternity policies vary significantly between sectors, employer sizes, and corporate structures.

While small businesses often stick closer to statutory requirements due to cash-flow considerations, larger corporate entities and public sector organizations use enhanced family leave packages to attract and retain staff.

According to recent UK workplace benefits data from the CIPD, roughly 65% to 70% of medium-to-large employers offer some form of enhanced payment scheme above statutory requirements.

By comparison, data shows that within small and medium enterprises (SMEs), this figure sits closer to 40% due to tighter operating margins.

Typical Enhanced Pay Comparison

• Private Sector Median: 18 Weeks Full Pay
• NHS Scheme: 8 Weeks Full Pay + 18 Weeks Half Pay (+ SMP)
• Teachers (Burgundy Book): 4 Weeks Full Pay + 2 Weeks 90% Pay + 12 Weeks Half Pay

What is considered a good maternity package in the UK?

A competitive maternity package in the UK private sector typically offers 18 to 26 weeks of full basic salary. Leading employers in finance, legal, and professional services often go further, offering up to 26 weeks of full pay without requiring complex continuous service conditions.

The public sector relies on standardized frameworks:

• NHS Maternity Pay Structure: The NHS scheme provides 8 weeks of full pay (inclusive of SMP), followed by 18 weeks of half pay plus standard SMP, followed by 13 weeks of standard SMP alone, and 13 weeks of unpaid leave.
• Teachers’ Maternity Scheme (Burgundy Book): State school teachers covered by the national agreement receive 4 weeks of full pay, 2 weeks at 90% of salary, 12 weeks at half pay plus SMP, and 21 weeks at standard statutory pay.

What Are the Benefits of Enhanced Maternity Pay?

While Statutory Maternity Pay ensures a basic financial safety net, enhanced maternity pay (OMP) offers transformational advantages for both workers starting a family and the businesses that employ them.

For Employees

• Financial Peace of Mind: Bridging the gap between standard statutory rates (£194.32/week for 2026/27) and a normal salary eliminates severe drops in household income during early parenthood, reducing stress during a major life transition.
• Protection of Long-Term Wealth: Because pension contributions from the employer are maintained at full pre-leave salary levels during paid leave, enhanced schemes help prevent the widening of the gender pension gap.
• Flexibility to Take Full Leave: Without the pressure of immediate financial necessity, parents can afford to utilize their full leave entitlement and return to work when it is genuinely right for their family.

For Employers

• Attraction and Recruitment: A competitive family leave package is one of the top benefits job seekers evaluate. Offering 18–26 weeks of full pay serves as a primary driver for attracting top-tier talent, particularly in competitive sectors like tech, law, and finance.
• Higher Staff Retention: Retaining skilled workers saves tens of thousands of pounds in hiring, onboarding, and lost productivity. Clear return-to-work expectations attached to enhanced pay encourage employees to return long-term.
• Stronger Workplace Culture & Morale: Demonstrating concrete investment in employees’ personal well-being builds deep loyalty, drives engagement, and signals an inclusive, family-friendly corporate environment.

Who is eligible for enhanced maternity pay in the UK?

Eligibility for statutory payments is governed by strict legal rules, whereas eligibility for enhanced contractual pay is determined by your employer’s specific policy.

1. Check Continuous Service: Must have worked the required tenure (e.g., 26 weeks for SMP or 1-2 years for OMP)
2. Reach the Qualifying Week: The 15th week before the Expected Week of Childbirth (EWC)
3. Verify Earnings Threshold: Average Weekly Earnings must meet or exceed £129/week (2026/27 threshold)
4. Submit Required Proof: Provide MAT B1 certificate at least 28 days before pay start date

To qualify for statutory maternity pay, an employee must satisfy three basic criteria:

1. Complete at least 26 weeks of continuous service with the same employer, continuing into the Qualifying Week (which is the 15th week before the Expected Week of Childbirth).
2. Earn an average of at least £129.00 per week gross over the 8-week relevant calculation period (if earnings fall below this, check how much Maternity Allowance you can claim instead).
3. Provide proper advance notice alongside official medical proof of pregnancy.

For contractual enhanced pay, employers can set their own eligibility requirements. For instance, a policy might require an employee to have completed 12 or 24 months of continuous service before the expected week of childbirth to qualify for full contractual top-ups.

Required Documentation for Processing

When requesting maternity benefits, workers must supply formal medical evidence. Doctors or midwives issue the MAT B1 certificate after the 20th week of pregnancy, confirming the expected due date.

Employees must notify their employer in writing at least 28 days before they intend their paid leave to start, clearly stating their planned start date.

How to calculate enhanced maternity pay?

Calculating enhanced maternity pay involves establishing the worker’s Average Weekly Earnings (AWE) during the official HMRC reference period and applying the relevant contractual top-up formula.

Step-by-Step Calculation Process

Follow these steps to calculate enhanced maternity pay correctly:

1. Identify the Qualifying Week: Count back exactly 15 weeks from the Sunday of the expected week of childbirth.
2. Determine the 8-Week Reference Period: Locate the final pay slip before the end of the Qualifying Week and count back 8 weeks (or 2 monthly pay cycles) to identify the relevant calculation window.
3. Calculate Average Weekly Earnings (AWE): Divide total gross earnings paid during that 8-week window by 8.
4. Determine the Statutory Rate: Calculate 90% of AWE for weeks 1–6, and set the baseline rate at £194.32 per week for weeks 7–39.
5. Apply the Employer’s Top-Up: Calculate the difference between normal basic salary and the statutory baseline amount.
6. Process Payroll Deductions: Apply PAYE Income Tax, Class 1 National Insurance, and pension contributions to the gross total.
7. Submit the Employer Claim: Reclaim the statutory portion via the employer’s payroll software during monthly Real Time Information (RTI) submissions.

In this example, the worker receives their full gross pay (£692.31/week) throughout the initial 18-week window. The employer recovers the statutory component (£194.32/week) through payroll submissions, absorbing only the contractual top-up element as a direct business expense.

How Do Employers Reclaim Maternity Pay from HMRC?

Employers do not bear the full financial cost of the statutory component. When processing payroll, organizations recover a percentage of the statutory pay from their monthly PAYE and National Insurance bill sent to HMRC.

• Standard Employers: Can reclaim 92% of all Statutory Maternity Pay paid out to staff.
• Small Business Relief: Employers who paid £45,000 or less in total Class 1 National Insurance in the previous tax year can reclaim 103%. The extra 3% acts as an allowance to help offset administrative costs.

Contractual top-ups beyond statutory rates cannot be reclaimed from HMRC and must be funded entirely by the employer.

Do you have to pay back enhanced maternity pay if you do not return to work?

Employees must pay back enhanced maternity pay only if a clawback clause was explicitly included in their employment contract before leave began.

Statutory Maternity Pay (SMP) is legally protected and can never be reclaimed, but employers can require full or partial repayment of contractual top-ups if a worker resigns early.

Clawback Clause Sliding Scale

• Resign during leave / Month 0: 100% Repayment of Enhanced Pay
• Return for 1 Month: 66% Repayment of Enhanced Pay
• Return for 2 Months: 33% Repayment of Enhanced Pay
• Complete 3 Months Service: 0% Repayment (Fully Cleared)

Understanding Clawback Clauses and Statutory Rules

It is vital to distinguish between statutory pay and contractual top-ups.

• Statutory Maternity Pay (SMP) Can Never Be Reclaimed: By law, statutory payments belong to the employee regardless of whether they return to work or resign immediately after leave. Employers cannot demand repayment of the statutory portion.
• Contractual Enhancements May Be Reclaimed: Employers can require employees to repay the enhanced portion if they resign before completing a specified return period (typically 3 to 6 months).

Scenario	Statutory Component (£194.32/wk)	Enhanced Company Top-Up
Resigns during leave	Retained by employee (No repayment).	Repayable if clawback clause exists.
Returns for full required period	Retained by employee.	Retained by employee (No repayment).
Resigns halfway through required period	Retained by employee.	Pro-rata repayment may apply.
Made redundant during leave	Retained by employee.	Cannot be clawed back by employer.

If an employee is made redundant or dismissed while on leave, clawback clauses generally become unenforceable, allowing the worker to keep the enhanced payments.

How are taxes, pensions, and leave handled during enhanced leave?

Maternity leave impacts wider employment benefits, including annual leave accumulation, pension contributions, and tax treatments.

Benefit Treatment During Enhanced Leave

Benefit Area	Treatment During Enhanced Leave
Annual Leave Accrual	Continues to accrue fully (including Bank Holidays)
Pension (Employer Share)	Maintained at 100% pre-leave salary level
Pension (Employee Share)	Calculated on actual gross pay received
Keeping In Touch (KIT) Days	Up to 10 KIT days paid without breaking leave

Tax and Pension Rules Explained

Both Statutory Maternity Pay and enhanced contractual top-ups are treated as normal earned income. Deductions for Income Tax (PAYE) and Class 1 National Insurance apply to these payments in the usual way.

Pensions follow specific rules designed to protect parents taking leave:

• Employer Contributions: Employers must continue making pension contributions based on the worker’s full pre-maternity salary throughout the entire paid leave period (including both statutory and enhanced weeks).
• Employee Contributions: Employee contributions are calculated based on the actual pay received during that pay period rather than their normal full salary.

Holiday Accrual and Keeping in Touch (KIT) Days

Statutory holiday entitlement continues to accrue as normal throughout both Ordinary Maternity Leave (weeks 1–26) and Additional Maternity Leave (weeks 27–52). Employees build up their full contractual annual leave allowance, including bank holidays, while taking maternity leave.

Additionally, workers can use up to 10 Keeping in Touch (KIT) days during their leave. KIT days allow employees to work without ending their maternity leave or statutory pay. Payment for KIT days is agreed upon between employer and employee, often topping up daily pay to full normal wages.

Conclusion

Enhanced maternity pay offers valuable financial support for growing families while helping UK employers attract and retain skilled staff.

While statutory pay provides an essential minimum baseline (£194.32/wk for 2026/27), contractual top-ups bridge the gap to maintain financial stability during family leave.

Key Action Plan

• For Employees: Review your contract and staff handbook early in your pregnancy. Request your MAT B1 form around week 20, check for clawback terms, and give written notice at least 28 days before starting your leave.
• For Employers: Ensure your maternity policy clearly distinguishes between statutory payments and contractual top-ups. Set explicit return-to-work expectations, update payroll settings for current rates, and use Small Business Relief options where eligible.

Disclaimer: This article is for informational purposes only and does not constitute formal legal or financial advice; always review your official employment contract or consult HR for specific policy terms.

FAQ

What is the maximum maternity pay in the UK?

There is no statutory cap during the first 6 weeks of SMP, which pays 90% of actual earnings. For enhanced schemes, maximum pay depends entirely on employer policy limits.

How much is statutory maternity pay in the UK for 2026?

From April 2026, standard statutory pay is £194.32 per week (or 90% of average weekly earnings, whichever is lower) for weeks 7 to 39.

Do I have to pay back my maternity pay if I resign?

Statutory maternity pay is protected and never needs to be repaid. Contractual enhanced pay may require repayment if outlined in your contract’s clawback clause.

Can an employer refuse to offer enhanced maternity pay?

Yes. Enhanced pay is a discretionary contractual benefit. Employers must provide statutory pay to eligible staff, but top-ups remain optional.

How many weeks is enhanced maternity pay usually paid?

Private sector packages commonly offer 12 to 26 weeks of full pay, while standardized public sector policies typically span 18 to 26 weeks.

Does enhanced maternity pay affect my pension contributions?

Your employer must maintain pension contributions based on your full pre-leave salary, while your contributions reflect actual pay received.

Is enhanced maternity pay taxable under UK PAYE?

Yes. Enhanced maternity pay is classified as normal earnings, making it subject to standard PAYE Income Tax and National Insurance deductions.

Can I take KIT days while receiving enhanced maternity pay?

Yes. You can work up to 10 Keeping in Touch days without losing statutory entitlements or interrupting your agreed leave period.