NIM09320 - Earnings Periods: Statutory Payments: Payment after employment has ended
Section 4(1) of the Social Security Contributions and Benefits Act 1992 (SSCBA 1992)
For the purposes of this page when we refer to Statutory Payments we mean:
- Statutory Maternity Pay (SMP),
- Statutory Sick Pay (SSP),
- Statutory Paternity Pay (SPP),
- Statutory Adoption Pay (SAP),
- Shared Parental Pay (ShPP) and
- Statutory Parental Bereavement Pay (SPBP).
Any Statutory Payments paid, other than by lump sum, after the employment has ended are liable for NICs and the earnings period depends on the circumstances.
Payment made at same frequency as regular salary
If an employer continues to pay Statutory Payments at the same frequency as regular wages or salary, the regular earnings period will apply, for example monthly salary followed by monthly Statutory Payments, the Statutory Payments will have the same monthly earnings period.
Payment made at different frequency from regular salary
If an employer pays Statutory Payments at a different frequency from regular wages or salary, the earnings period will be a week, for example monthly salary followed by fortnightly or four weekly payments of Statutory Payments, the Statutory Payments will have a weekly earnings period.