Comparison · Payroll & Employer Costs · 2026
SMP vs ShPP Employer Cost UK 2026: Payroll Admin for Maternity and Shared Parental Pay
When an employee wants to share parental leave rather than take it all as maternity leave, HR and payroll teams need to know whether Shared Parental Pay costs the business more than Statutory Maternity Pay — and how much extra administration it creates. Here is the employer-side comparison for 2026.
TL;DR -- 30-Second Summary
- • Same statutory pot: up to 39 weeks of pay, whether taken as SMP or split as ShPP
- • Same reclaim rate: 92% standard, 103% under Small Employers' Relief (NI liability ≤ £45,000)
- • ShPP is not more expensive — it is more administratively complex
- • SMP first 6 weeks pay 90% of AWE uncapped; ShPP is flat rate (or 90% if lower) throughout
- • Employer NI at 15% applies on top of both and is not reclaimable
Side-by-Side Comparison
| Feature | SMP | ShPP |
|---|---|---|
| Maximum paid weeks | 39 weeks | Up to 37 weeks (from the same pot) |
| First 6 weeks rate | 90% of AWE, uncapped | Lower of 90% AWE or £194.32/week |
| Remaining weeks rate | Lower of 90% AWE or £194.32/week | Lower of 90% AWE or £194.32/week |
| HMRC reclaim rate | 92% (100%+3% if small employer) | 92% (100%+3% if small employer) |
| Notice/evidence burden | Low — MAT B1 plus standard notice | Higher — curtailment and eligibility declarations from both parents |
| Number of employers involved | One | Potentially two, needing coordination |
Worked Example: A £30,000 Salary, Standard-Sized Employer
An employee earning £30,000 a year has an average weekly earning of roughly £577. Compare the employer's gross cost of the mother taking the full 39 weeks of SMP herself against the couple splitting 37 weeks of pay as ShPP between two employers (say, 20 weeks with this employer and 17 weeks with the partner's employer). This employer is not a small employer, so it reclaims 92% either way.
| Measure | Full 39-week SMP | 20 weeks ShPP with this employer |
|---|---|---|
| Weeks 1-6 gross pay (90% AWE) | about £3,116 (6 x £519) | Not applicable — ShPP is flat-rate throughout |
| Remaining weeks at £194.32 | 33 weeks: £6,413 | 20 weeks: £3,886 |
| Total gross statutory pay | about £9,529 | about £3,886 |
| HMRC reclaim (92%) | about £8,767 | about £3,575 |
| Net employer cost (before employer NI) | about £762 | about £311 |
The employer offering 20 weeks of ShPP pays proportionally less because the leave is split with another employer — the total statutory pot is unchanged, just divided. The genuine extra cost of ShPP is not cash, it is the time payroll and HR spend validating curtailment notices, coordinating start/end dates across up to three discontinuous blocks per parent, and liaising with the other employer if eligibility details need confirming.
Planning for Payroll Teams
Build ShPP requests around the 8-week minimum notice period for each block of leave, keep all curtailment and eligibility declarations on file, and remember employer Class 1 NI at 15% still applies on top of both SMP and ShPP and is not part of the HMRC reclaim. Confirm whether the business qualifies for Small Employers' Relief each tax year — the £45,000 NI liability threshold is checked against the previous complete tax year, so it can change year to year as headcount grows.