SPM10620 - Statutory Sick Pay (SSP) - Calculating average weekly earnings

Employee paid in multiples of a week

If an employee is paid in multiples of a week, for example, fortnightly, three weekly, four or five weekly:


  • add together the gross earnings in the set period see SPM10615
  • divide the total earnings by the number of weeks in the set period to give the AWE. Include each week in the set period, even if there were no earnings in a particular week.

Example

To work out AWE for employee's paid in multiples of a week, for example weekly, fortnightly or other multiple weekly.

Note the first day of the employee's PIW.

1 Find the date of the last normal pay day before the first day the employee is sick. This is the last day ofthe set period

2 Count back to the payday at least eight weeks from the date in 1 and come forward one day. This is thefirst day of the set period.

3 Add together all the earnings paid between the dates 2 and 1 (inclusive)

4 Divide the figure in 3 by the number of weeks in the set period. ( Do not round up or down to wholepence)


An example of the above

First day of the PIW 13.05.09

1 Friday 08.05.09

2 Eight weeks back is 13.03.09, forward one day is 14.03.09

4 £1,002.90

5 £1,000.00 divide by 8 = £125.3625 per week