Increase to the percentage of statutory family-related pay small employers can recoup

Implementation date: 6 April 2025

The percentage of statutory maternity and other family-related pay that small employers can recoup from HM Revenue and Customs increases from 103% to 108.5%.

Small employers' relief allows employers to recoup the full amount of the statutory pay, plus an additional payment. The additional payment increases from 3% to 8.5% from 6 April 2025.

The increase applies to statutory maternity, adoption, paternity, shared parental, neonatal care and parental bereavement pay.

An employer qualifies for small employers' relief if it has a national insurance contribution liability of £45,000 or less in the previous tax year. Employers that do not qualify for small employers' relief can recoup 92% of statutory family-related pay (unchanged from previous years).