Maternity Pay After Tax on £40,000 Salary | 2025-26
SMP gross over 39 weeks: £10,331 · Effective SMP tax rate: 2.5%
SMP calculation breakdown 2025-26
| Period | Weekly rate | Weeks | Gross total |
|---|---|---|---|
| Weeks 1–6 (90% AWE) | £692 | 6 | £4,154 |
| Weeks 7–39 (statutory cap £187.18) | £187 | 33 | £6,177 |
| Weeks 40–52 | £0 | 13 | Unpaid (statutory) |
| Income Tax + NI on SMP | −£253 | ||
| Net SMP take-home (39 weeks) | £10,078 | ||
SMP vs your normal salary
Your pre-maternity salary is £40,000/year (£2,693/month net). During maternity leave, your SMP averages £1,120/month net — a 58.4% drop in monthly take-home. Because your 90% AWE (£692/week) is above the £187.18 statutory cap, weeks 7–39 are paid at the flat rate.
Personalised insights for £40,000
| Period | Net take-home (est.) |
|---|---|
| Weeks 1–6 (90% AWE) | £4,052 |
| Weeks 7–39 (statutory/capped) | £6,026 |
| Weeks 40–52 (unpaid) | £0 |
| Full-year net vs normal salary | −£22,242 |
Monthly delta vs normal net: −£1,854/month averaged across a 52-week maternity leave.
Pension contributions during maternity leave
During Statutory Maternity Leave, your employer must continue pension contributions based on your normal salary, not your reduced SMP. Your own contributions are based only on what you actually receive (SMP).
| Employer contribution (5% of normal salary) | £2,000/year |
| Your contribution (5% of SMP gross) | £517 over 39 weeks |
| Enhanced maternity scenario (6mo full pay + 3mo SMP) | £22,433 gross (+£12,102 vs SMP only) |
Check your employer's maternity policy — many offer enhanced pay above statutory SMP for the first 6 months.
How much maternity pay do you take home on £40,000?
On a £40,000 salary, your Statutory Maternity Pay take-home is £1,120 per month over the 39-week paid period. Your Average Weekly Earnings are £769, which determines your SMP rate.
For the first 6 weeks, you receive 90% of your AWE (£692/week), totalling £4,154. For weeks 7–39, you receive £187/week (the £187.18 statutory cap, since 90% of your AWE exceeds it), totalling £6,177. Total gross SMP over 39 weeks: £10,331.
After Income Tax and National Insurance, your net SMP is £10,078 over the full 39 weeks, averaging £1,120/month. The effective tax rate on your SMP is 2.5% — substantially lower than your normal salary tax rate because SMP is much lower income.
Tax refund during maternity leave
If you work part of the tax year before starting maternity leave, you may have overpaid tax through PAYE. Because your annual income drops significantly on SMP, HMRC may owe you a refund. Your employer should adjust PAYE automatically — if not, you can claim via HMRC after the tax year ends.
The real cost of a year off on £40,000
Compared to working the whole year, taking 52 weeks of maternity leave on a £40,000 salary reduces your net take-home by approximately £22,242 (£1,854/month averaged). Your normal monthly net would have been £2,693 vs £1,120 during SMP — an income drop of 58.4%. Budgeting for this gap is critical before your maternity leave starts: many families use savings, partner income, or dip into flexible savings built in the preceding 12 months. Remember your employer pension contributions continue at your full-salary rate, which is often the hidden upside of statutory maternity protections.
Frequently asked questions
How much SMP will I take home on a £40,000 salary?
On a £40,000 salary, your Statutory Maternity Pay take-home is approximately £1,120 per month over the 39-week paid period. Total SMP gross is £10,331, with £253 deducted in Income Tax and NI, leaving £10,078 net over 39 weeks.
Is SMP (Statutory Maternity Pay) taxable?
Yes. SMP is treated as employment income and is subject to both Income Tax and National Insurance, just like your regular salary. However, because SMP is significantly lower than your normal pay, your effective tax rate drops considerably. On a £40,000 salary, the effective tax rate on SMP is 2.5%.
Do I pay NI on maternity pay?
Yes, National Insurance contributions apply to SMP, but only on earnings above the NI Primary Threshold (£12,570/year in 2025-26). Because SMP is lower than most salaries, many people pay little or no NI during maternity leave. Your total SMP gross of £10,331 over 39 weeks falls below the annual NI threshold.
How is SMP calculated on a £40,000 salary?
Your Average Weekly Earnings (AWE) are £769 (£40,000 ÷ 52). Weeks 1–6: 90% of AWE = £692/week × 6 = £4,154. Weeks 7–39: statutory cap of £187.18/week (since 90% AWE of £692 exceeds the cap) × 33 = £6,177. Total SMP gross: £10,331.
Will I get a tax refund during maternity leave?
Possibly. If you worked part of the tax year at your normal salary before going on maternity leave, you may have already paid more tax than you owe for the full year (since your total annual income is much lower). HMRC will normally refund any overpayment through your payslip as your employer recalculates PAYE, or via a P800 at year-end.
What happens to NI contributions during maternity leave?
While receiving SMP, you continue to pay NI on any earnings above the Primary Threshold. Importantly, your NI record is protected during Statutory Maternity Leave — you receive National Insurance credits even for any unpaid leave weeks. This protects your State Pension entitlement.