Statutory paternity pay - what are the rates and how do I reclaim it as an employer

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Statutory paternity pay - what are the rates and how do I reclaim it as an employer

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One of my team is about to become a father for the first time - his partner is due in a couple of months - and I want to make sure I get the paternity pay side of things right as his employer. This is the first time any of my staff has taken paternity leave, so I am learning as I go.

Could someone talk me through the current statutory paternity pay setup? I have seen the GOV.UK figure of 194.32 a week or 90% of average weekly earnings, whichever is lower, for up to two weeks - is that still the current rate for this tax year?

A few specific things I am unsure about:

What are the eligibility conditions my employee needs to meet? I have read something about 26 weeks of continuous employment and a minimum earnings level, but I want to be sure I have it right.
How does the reclaim actually work in practice? I understand employers can recover 92% of what they pay out (or 109% for smaller employers), but where does this happen - is it through my payroll software and the EPS to HMRC?
If I wanted to top up his pay above the statutory rate as a goodwill gesture, can I still reclaim the full amount I pay, or only the statutory portion?

I run payroll through my accountant but I want to understand the mechanics myself rather than just handing it over. Any pointers from other employers who have been through this would be much appreciated.

Tagshmrc payroll statutory pay

Answer 1

DDasiy Smith

The £194.32 figure you have seen is right: for 2026/27, Statutory Paternity Pay is £194.32 a week or 90% of the employee's average weekly earnings, whichever is lower (confirmed on GOV.UK). The leave itself is up to two weeks, which can be taken as one block or two separate weeks, within the first year after the birth or placement.

Eligibility

The employee must have been employed by you continuously for at least 26 weeks up to the qualifying week (the 15th week before the expected week of childbirth, or the matching week for adoptions), give you the correct notice, and be the father, partner or intended parent taking time off to look after the child. If their earnings are too low to qualify, you must give them written reasons — GOV.UK provides the template form (SPP1) for this.

Reclaiming it as an employer

You reclaim 92% of the SPP you pay through your payroll software, reported on your Employer Payment Summary (EPS) — most payroll software handles this automatically. If you qualify for Small Employers' Relief (based on your previous tax year's National Insurance bill), the recovery rate is higher, so it is worth checking the employer guide on GOV.UK to confirm your rate.

Record-keeping

Keep records of the SPP paid, the leave dates and the employee's notice for at least three years after the end of the tax year in which the payments were made — HMRC can ask to see them.

Topping up

You are welcome to pay the employee more than the statutory rate as a goodwill gesture, and many employers do — but the top-up is your own cost. You can only reclaim the statutory element; anything above it is not recoverable.

One practical tip: put a written paternity leave policy in your staff handbook now, before you are asked, so that notice periods and any topping-up rules are agreed in advance. It avoids awkwardness when the moment comes.

Statutory paternity pay - what are the rates and how do I reclaim it as an employer

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Eligibility

Reclaiming it as an employer

Record-keeping

Topping up

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