What is Shared Parental Pay?

Full Definition

Statutory Shared Parental Pay (ShPP) lets eligible parents share up to 50 weeks of leave and up to 37 weeks of pay in the first year after a baby is born or a child is placed for adoption. It works by the mother or primary adopter ending their maternity or adoption leave early and converting the untaken balance into a shared pool that either parent can take, together or separately, in blocks. ShPP is paid by the employer and reclaimed from HMRC, at the lower of a flat statutory weekly rate or 90% of average weekly earnings; the exact 2026/27 weekly figure is set by the government and should be checked on gov.uk. To qualify, parents must meet continuity-of-employment and earnings conditions and give proper notice. This matters because it gives families flexibility over who cares for a child and when, rather than concentrating leave with one parent. Pay received is treated as earnings, so income tax and National Insurance apply.

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