What is Shared Parental Leave and Pay?

Shared Parental Leave (ShPL) is a UK statutory right that allows eligible parents to share up to 50 weeks of leave and 37 weeks of pay between them after the birth or adoption of a child. It gives families flexibility to choose how they divide time off work, rather than all leave being taken by one parent.

How Shared Parental Leave Works

ShPL is created by the mother or primary adopter curtailing their maternity or adoption leave early. The unused balance can then be shared between both parents in a pattern that suits the family.

Both parents can be on ShPL at the same time, which is not possible with maternity and paternity leave .

Eligibility

Mother or Primary Adopter

The mother must:

• Be entitled to maternity leave or Statutory Maternity Pay / Maternity Allowance
• Have curtailed (ended early) their maternity leave or pay period
• Share the main responsibility for the child with the partner

Partner

The partner must:

• Have been continuously employed for at least 26 weeks ending with the 15th week before the expected week of childbirth
• Still be employed by the same employer at the start of each period of ShPL
• Share the main responsibility for the child with the mother

Economic Activity Test

The other parent (whichever one is not claiming ShPL from their employer) must have:

• Been employed or self-employed for at least 26 weeks in the 66 weeks before the expected week of childbirth
• Earned at least £390 in total in 13 of those 66 weeks

This means one parent needs continuous employment with one employer (the continuity of employment test) while the other only needs a looser history of economic activity.

Shared Parental Pay (ShPP)

Shared Parental Pay is the statutory payment made during ShPL. It is paid at:

ShPP is processed through PAYE payroll and subject to income tax and National Insurance deductions.

Notice Requirements

ShPL requires three types of notice, each serving a different purpose:

1. Curtailment Notice

The mother gives her employer a binding notice to end maternity leave early. This sets the date from which ShPL becomes available. The curtailment notice must state the date maternity leave will end.

2. Notice of Entitlement

Both parents give their respective employers a notice of entitlement at least 8 weeks before the first period of ShPL. This includes:

• The expected week of childbirth and actual date of birth (if born)
• The total ShPL and ShPP each parent intends to take
• How much maternity leave and pay has been or will be taken
• A signed declaration from the other parent confirming eligibility

3. Period of Leave Notice

Each parent gives their employer at least 8 weeks’ notice of the specific dates they want to take ShPL. This is the formal booking request.

• Parents can submit up to 3 period of leave notices each
• A notice can request a continuous block (which the employer must accept) or discontinuous blocks (which the employer can refuse)
• If discontinuous leave is refused, the employee can take the total amount requested as one continuous block, starting on the date given in the notice

Employer Obligations

Responding to Notices

If the employer does not respond to a discontinuous request within 14 days, the employee can take the leave as a single continuous block or withdraw the notice.

Payroll Processing

• Calculate and pay ShPP through normal payroll
• Deduct income tax and NICs
• Report on the Full Payment Submission through RTI
• Show ShPP on payslips

HMRC Recovery

Employers recover ShPP from HMRC in the same way as SMP:

Recovery is claimed through the Employer Payment Summary (EPS).

ShPL and Pension Contributions

Auto-enrolment pension obligations continue during ShPL. Contributions are calculated on the actual pay received (ShPP or enhanced pay).

Shared Parental Leave in Touch (SPLIT) Days

Each parent can work up to 20 Keeping In Touch days during ShPL without ending their leave. These are called SPLIT days and are separate from the 10 KIT days available during maternity leave.

SPLIT days are voluntary for both employer and employee. Payment for SPLIT days is agreed between the parties.

Enhanced Shared Parental Pay

Some employers offer enhanced ShPP above the statutory minimum. There is no legal requirement to match enhanced maternity pay with enhanced ShPP, but employers should consider whether differences could give rise to discrimination claims.

ShPL and Accounting Records

ShPP creates entries in the employer’s accounting records :

Key Dates and Deadlines