Statutory Adoption Pay Employer Guide: UK HMRC Rates & Rules

• Statutory Adoption Pay covers 39 weeks total.
• The first 6 weeks pay at 90 percent of average weekly pay.
• The final 33 weeks pay at £194.32 or 90 percent.
• Staff need 26 weeks continuous work by the matching week.
• Small firms reclaim up to 108.5 percent from HMRC.

Statutory Adoption Pay provides qualifying staff with up to 39 weeks of pay. Employers pay 90 percent of average weekly earnings for 6 weeks, then £194.32 or 90 percent for 33 weeks. Adoption leave is a day-one employment right. Statutory Adoption Pay requires continuous service and minimum earnings. Eligible staff receive 39 weeks of payments. Small employers must check matching dates, calculate weekly wages, and run payroll properly.

Getting these dates right keeps your business safe. Under official GOV.UK adoption employer rules, you must check official matching paperwork. You must also track the exact matching week. Mistakes can bring staff grievances or tax penalties.

Are you managing wider parental leave? Read our helpful statutory paternity pay employers guide for secondary partners. Clear payroll practices keep your cash flow steady.

Statutory adoption pay eligibility and matching week rules

To qualify for SAP, a worker must pass two main tests. They need continuous service. They must also earn enough money.

The worker must have 26 weeks of unbroken service with your firm. This service must run into the matching week. The matching week starts on Sunday. It ends on Saturday. It is the week the agency tells the worker of the child match. Working just one day in that week meets this test.

Earnings matter too. To qualify, average weekly earnings must hit £129 or more during the 2026/2027 tax year. Assess pay across eight test weeks. Below £129, SAP cannot be paid.

Only one parent in a couple can claim SAP. The other partner may claim paternity pay. Couples can also share leave. See our guide on statutory shared parental pay eligibility for more details.

How much is statutory adoption pay and the 39-week schedule

Statutory Adoption Pay lasts for 39 weeks in total. The payment plan has two steps.

The first step lasts six weeks. You pay 90 percent of average gross pay. There is no money cap on these six weeks. High earners get 90 percent of their actual pay. The second step covers the remaining 33 weeks. You pay £194.32 per week or 90 percent of average earnings, whichever is lower. Deduct normal tax and National Insurance from every payment.

Check official HMRC manual calculation guidance for payroll cycle rules. The table below outlines payment rates for standard salary levels.

Planning for team changes or restructuring? Read our clear summary of statutory redundancy pay calculation. Clear figures build trust across your workplace.

Evidence for statutory adoption pay and employer notification

Workers must give proper notice and proof. Verbal requests are never enough.

Staff must give notice within seven days of the match. The notice must state the expected placement date. It must name the leave start date. It must also list the pay start date. Workers can change this date by giving 28 days of notice.

You must ask for written proof. Get proof within 28 days of the pay start date. An official matching certificate from an approved UK agency works. For overseas adoptions, get official government confirmation. For surrogacy, the employee must give a written declaration. This declaration confirms they will apply for a parental order.

Keep these forms safe in your payroll files. Check our advice on how long to keep payroll records UK. Good filing prevents trouble during tax audits.

Statutory adoption pay reclaim rules and small employer relief

You do not pay for all of SAP from your own pocket. Businesses reclaim most statutory pay directly from HMRC. You do this by cutting your monthly PAYE tax bill.

Standard employers reclaim 92 percent of statutory pay. Small businesses can reclaim even more money. You get Small Employers' Relief if your Class 1 National Insurance was £45,000 or less in the prior tax year. With this relief, you get back 100 percent of the pay plus compensation up to 8.5 percent, reaching a maximum 108.5 percent recovery rate.

Submit your reclaim on your Employer Payment Summary. If your monthly PAYE liability is too low to absorb the refund, request an advance directly from HMRC. Read HMRC SPM130200 statutory payment guidelines for full details. Reclaiming pay quickly protects cash flow.

Statutory adoption pay rules for non-qualification and form SAP1

Sometimes a worker will not qualify. When that happens, you must send a formal refusal. Do not just stop pay or tell them verbally.

You must fill in form SAP1. The form gives the real legal reason for refusal. Maybe they lacked 26 weeks of service. Or maybe their pay fell below £129 per week. Give form SAP1 to the worker within seven days of your choice.

Giving form SAP1 on time keeps you compliant and helps your staff understand the decision.