Statutory Adoption Pay (SAP)

Statutory Adoption Pay (SAP) is the legal minimum an employer must pay to an employee who takes time off to adopt a child. It mirrors Statutory Maternity Pay in structure and is paid for up to 39 weeks through the PAYE payroll system.

SAP Rates (2024/25)

SAP is paid at two rates depending on the stage of the adoption pay period:

The total adoption leave entitlement is 52 weeks (26 weeks of Ordinary Adoption Leave plus 26 weeks of Additional Adoption Leave). SAP covers only the first 39 weeks; the remaining 13 weeks are unpaid.

Eligibility for SAP

An employee qualifies for SAP if they meet all of the following:

• They have been continuously employed by the same employer for at least 26 weeks ending with the matching week (the week they are matched with a child)
• Their average weekly earnings in the 8 weeks (or 2 months for monthly-paid employees) ending with the matching week are at least equal to the Lower Earnings Limit for National Insurance (£123 per week for 2024/25)
• They have given the employer proper notice of the adoption
• They have provided documentary evidence of the adoption (matching certificate from the adoption agency)
• They are the primary adopter – only one member of a couple can claim SAP (the other may be entitled to Statutory Paternity Pay or Shared Parental Pay)

Who Cannot Claim SAP

• A person adopting a stepchild (the child of their partner)
• A person who arranges a private adoption without going through an approved adoption agency
• Foster carers who adopt a child they are already fostering (special rules apply – see “foster to adopt” below)

The Matching Week

The matching week is central to SAP eligibility. It is the week in which the adoption agency formally tells the employee they have been matched with a child. This date determines:

• The 26-week continuous employment requirement
• The relevant period for calculating average weekly earnings
• The earliest date SAP can begin

For overseas adoptions, the matching date is replaced by the date the employee receives official notification that the adoption has been approved.

When SAP Starts and Ends

The adoption pay period can start:

• On the date the child is placed with the employee, or
• On a fixed date no more than 14 days before the expected placement date

The employee chooses which option and notifies the employer at least 28 days before the chosen start date (or as soon as reasonably practicable).

SAP stops if:

• 39 weeks have been paid
• The employee returns to work (except for Keeping In Touch days)
• The placement is disrupted (SAP continues for 8 weeks after disruption)
• The employee is taken into legal custody

Calculating Average Weekly Earnings

The AWE calculation follows the same method as for Statutory Maternity Pay:

AWE includes basic salary, regular overtime, shift allowances and bonuses paid within the relevant period.

Processing SAP Through Payroll

SAP is treated like regular pay for tax and NIC purposes:

• Income tax is deducted under PAYE using the employee’s tax code
• Employee NICs are deducted if earnings exceed the Primary Threshold
• Employer NICs are calculated on SAP
• SAP is reported to HMRC through RTI on the Full Payment Submission
• SAP appears on the employee’s payslip and P60

SAP Payment Example

For an employee earning £35,000 per year (£673.08 per week average):

Recovering SAP from HMRC

Employers can recover SAP costs from HMRC in the same way as SMP:

Recovery is made by reducing the monthly PAYE payment to HMRC. The amount recovered is reported on the Employer Payment Summary (EPS) through RTI.

Small Employer Relief

An employer qualifies as small if their total employer and employee Class 1 NIC liability in the qualifying tax year is £45,000 or less. The extra 3% compensates for the administrative cost of managing SAP.

Notice and Evidence Requirements

Employee’s Obligations

The employee must provide:

• 28 days’ notice of when they want SAP to start (or as soon as reasonably practicable)
• A matching certificate from the adoption agency showing the date of matching and the expected date of placement
• A declaration that they are choosing to receive SAP (rather than their partner)

Employer’s Response

Within 28 days of receiving the employee’s notice, the employer must confirm in writing:

• The date SAP will start
• The date SAP will end
• The employee’s entitlement and rate

If the employee does not qualify, the employer must issue form SAP1 within 7 days, explaining why.

Contractual Adoption Pay

Some employers offer enhanced adoption pay that exceeds the statutory minimum. SAP is offset against contractual adoption pay – it is not paid in addition to it. The employer can still recover the SAP element from HMRC.

Keeping In Touch (KIT) Days

During adoption leave, the employee can work up to 10 Keeping In Touch days without losing SAP. Payment for KIT days is agreed between employer and employee. KIT days are optional for both parties.

Foster to Adopt

Under the Fostering for Adoption scheme, employees who have a child placed with them as a foster carer with a view to adoption are treated as adopters for the purpose of SAP. The placement date for SAP purposes is the date the child starts living with the employee.

Surrogacy Arrangements

From April 2015, employees who use a surrogacy arrangement and intend to apply for a parental order can qualify for SAP if they meet the standard eligibility conditions. The “matching” date is the date the child is born.

SAP and Pension Contributions

During the adoption pay period, auto-enrolment pension obligations continue:

• Employer contributions are based on the actual pay received (SAP or enhanced adoption pay)
• Employee contributions are deducted from actual pay
• During the unpaid period (weeks 40-52), no pension contributions are required unless the contract states otherwise

Key Dates and Deadlines