Shared Parental Leave: Tax, Pay and How It Works UK 2026

Shared Parental Leave (ShPL) was designed to give families more flexibility in how they share time off after a new arrival. Despite being available since 2015, uptake remains relatively low -- often because parents are unsure how the pay and tax rules work. This guide sets out the key facts for 2026/27.

What Is Shared Parental Leave?

When a mother (or person who gives birth) ends maternity leave early, the remaining weeks can be converted into Shared Parental Leave. Together, both parents can take up to 50 weeks of leave and up to 37 weeks of paid leave between them -- either consecutively or simultaneously.

The leave can be taken in multiple blocks, not just one continuous period. This gives families considerable flexibility: one parent might return to work for a period while the other takes a block of leave, then swap again. Both parents can also be on leave at the same time, though this uses the entitlement faster.

Eligibility Requirements

Both parents must meet eligibility criteria, and the rules differ slightly depending on which parent is taking leave.

For the birth parent to curtail maternity leave, they must have at least 26 weeks' continuous employment with their employer by the end of the 15th week before the expected due date, and must still be employed at the start of ShPL.

For the other parent (partner) to take ShPL, they must have been employed or self-employed continuously for at least 26 weeks in the 66 weeks before the due date, and have average weekly earnings of at least GBP 30 in 13 of those weeks.

Both parents must give their employers notice of their intention to take ShPL. The notice requirements involve several forms and a specific timeline, so it is worth reading the HMRC guidance carefully before making arrangements.

How Much Is Statutory Shared Parental Pay?

Statutory Shared Parental Pay (ShPP) for 2026/27 is GBP 194.32 per week, or 90% of average weekly earnings if that is lower. This is the same rate as Statutory Maternity Pay (SMP) for weeks 7 onwards and Statutory Paternity Pay (SPP).

ShPP is paid for up to 37 weeks, provided the parent meets the earnings criteria. The remaining weeks of leave (up to 50 in total between both parents) are unpaid.

Employers reclaim ShPP from HMRC in the same way as SMP and SPP, by offsetting it against employer NI payments. Most employers can reclaim 92% of ShPP paid; smaller employers who qualify for Small Employers' Relief can reclaim 103%.

Enhanced Shared Parental Pay

Some employers offer enhanced pay above the statutory minimum. The arrangements vary enormously -- some match full salary for a period, others offer a top-up to 50% or 75% of salary. Employers can offer different rates to mothers and partners taking ShPL without breaching equality legislation, provided the policy is consistently applied and does not discriminate on grounds of sex.

If you are considering ShPL, check your employer's policy carefully. The gap between GBP 194.32 per week and your normal salary could be substantial, especially for higher earners.

Tax Treatment of ShPP

ShPP is taxable employment income. It is processed through payroll and subject to income tax at your marginal rate and National Insurance in the normal way. For most people on ShPP, income over the leave period will be significantly lower than usual, which may mean less tax is deducted -- and potentially a refund if your PAYE code has been based on a higher annual income.

If your income drops below the Personal Allowance of GBP 12,570 during a period of ShPL, no income tax is due on that income. However, NI thresholds apply on a weekly basis: employee NI at 8% applies on weekly earnings above GBP 242 (the Primary Threshold, annualised equivalent to GBP 12,570). ShPP at GBP 194.32 per week falls below this threshold, so no employee NI is deducted on the statutory payment.

Impact on Pension Contributions

If your employer operates a workplace pension through auto-enrolment, contributions during ShPL can be complicated. You are generally entitled to continue pension accrual during paid leave at your normal contractual rate, with employer contributions continuing based on your usual pay (not the statutory pay). During unpaid leave, you can choose to continue contributing or pause, but employer contributions typically stop.

Check with your employer's HR or pension provider before leave starts. Any break in contributions can affect long-term pension savings, and it may be worth making additional contributions later to compensate.

Keeping in Touch (KIT) and Shared Parental Leave In Touch (SPLIT) Days

You can work up to 20 Shared Parental Leave In Touch (SPLIT) days during ShPL without it ending the leave period. This is separate from the 10 Keeping in Touch (KIT) days available during maternity leave. SPLIT days are paid at your normal daily rate and are taxed through payroll as usual. They can be useful for attending training, staying up to date with projects, or testing the waters before a full return.

Planning Your Leave

Before taking ShPL, it is worth modelling the income impact across the full leave period. A period at GBP 194.32 per week represents a significant drop for most workers, and understanding the tax implications of both the lower income and the return to normal salary can help with budgeting.

Use the CalcHub Take-Home Pay Calculator to compare your net income on statutory pay against your normal take-home figure, and plan your finances around the leave period.