SPM10610 - Statutory Sick Pay (SSP) - Calculating average weekly earnings
How to calculate the AWE
Employees are excluded from SSP if their average gross weekly earnings are below the LEL that is in force at the start of the PIW or first of a series of linked PIWs.
Regulation 19(3) of the Statutory Sick Pay (General) Regulations 1982 defines the set period as the period between:
- the last normal pay day before the start of the PIW. This pay day will be the end of the set period, and
- the day following the last normal pay day falling no less than eight weeks before the pay day at 1.
To calculate the AWE, all gross earnings paid in the set period are divided by the number of days, weeks or months, depending on the pay practice, in that set period.
For examples of calculations of an:
- employee paid weekly see SPM10615
- employee paid monthly see SPM10625
- employee paid annually see SPM10640
