SPM10655 - Statutory Sick Pay (SSP) - Calculating average weekly earnings: Calculating AWE where there is either a change of pay pattern or an irregular pay practice during the relevant period

Where an employee has a change of pay pattern, for example to both a weekly and a monthly pay day within the relevant period, each is calculated separately and then added together to establish the AWE.

Example

Employee is sick from the start of the PIW - Monday 9 July 2012

Their pay pattern changed from calendar monthly to four weekly

The employee was paid calendar monthly on the last day of the month

From 1 June 2012 they are paid four weekly every fourth Friday

The relevant period is from 1 May to 29 June 2012

This is worked out by:

Four weekly relevant period from Friday 29 June (last pay day before start of PIW) back to 1 June 2012

Calendar monthly relevant period from 30 April to 31 May 2012 - start of relevant period is

1 May 2012

Where an employee is usually paid at irregular intervals, for example because they don’t work for the employer everyday or they are paid on a commission basis only, calculate the AWE as follows; :

Note the first day 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 of the relevant period. 
2. Count back to the payday at least eight weeks from the date in 1 and come forward one day.
3. Add together all the earnings paid in between the dates in 2 and 1 (inclusive)
4. Work out the number of days between the dates in 2 and 1 (inclusive).
5. Divide the figure in 3 by the number of days in 4 (Do not round up or down to whole pence).
6. Multiply the figure in 5 by 7 (Do not round up or down to whole pence).

An example of the above

First day of PIW is 12.05.2012

1. Friday 04.05.2012
2. Eight weeks back is 09.03.2012, forward one day is 10.03.2012
3. £1500.00
4. 46 days
5. £1500.00 divided by 46 = £32.60869
6. 32.60869 multiplied by 7 = £228.26086