How this is calculated
Shared Parental Leave lets eligible parents split up to 50 weeks of leave and 37 weeks of pay between them after the mother or adopter ends her maternity or adoption leave and pay early. Each week of Statutory Shared Parental Pay (ShPP) is paid at the lower of average weekly earnings and the statutory weekly rate.
For 2026/27 that statutory rate is £194.32, the same figure used for statutory maternity, paternity and parental bereavement pay after the initial higher-rate maternity weeks. This calculator multiplies the applicable weekly rate by the number of weeks you plan to claim to give a total cost figure.
Employers recover most of ShPP from HMRC in the same way as other family-related statutory payments, through deductions from PAYE and NIC liabilities reported on the Employer Payment Summary.
Coordinating leave between two employers
Where each parent works for a different employer, both employers process their own share of ShPP independently, based on the notice and evidence each parent provides, including the other parent's curtailment of maternity or adoption leave.
A limited company director taking a share of ShPP needs to give the correct notice period, normally at least eight weeks before each block of leave, and should plan cover for client work or subcontracted delivery during the gap.
Budgeting for a small company
Because ShPP can run for many months, cash flow planning matters more than for the two-week paternity or bereavement payments. Even after recovery, employer National Insurance and pension contributions during the leave still fall on the business.
Small companies should factor the net cost, after recovery, into short-term cash flow forecasts, particularly if a locum, subcontractor or temporary hire is also being paid to cover the role.
What this means for your company
Treat the result as a planning figure for the 2026/27 tax year. If it changes what you were about to do, take a director's salary, a dividend, a large asset purchase or a filing decision, check it against your own accounts first. We can review the position with you and confirm the tax treatment before you commit.
Frequently asked questions
How many weeks of Shared Parental Pay are available?
Up to 37 weeks of pay can be shared between eligible parents, drawn from the maternity or adoption pay period once the mother or adopter has curtailed her own leave and pay to release the remaining weeks.
What weekly rate applies for 2026/27?
The same statutory family pay rate as maternity and paternity pay, £194.32 a week, or average weekly earnings if that figure is lower.
Can both parents claim Shared Parental Pay at the same time?
Yes, parents can take leave and pay at the same time, in separate blocks, or a mixture of both, provided the total does not exceed the pool of weeks available and each employer receives the correct notice.
Does a company recover the full cost of ShPP?
No. Standard employers recover 92.0% of the statutory payment and small employers recover 109.0%; the remainder, along with employer National Insurance during the leave, is a genuine cost to the business.