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.
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.
- 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.
- Count back to the payday at least eight weeks from the date in 1 and come forward one day.
- Add together all the earnings paid in between the dates in 2 and 1 (inclusive)
- Work out the number of days between the dates in 2 and 1 (inclusive).
- Divide the figure in 3 by the number of days in 4 (Do not round up or down to whole pence).
- 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
- Friday 04.05.2012
- Eight weeks back is 09.03.2012, forward one day is 10.03.2012
- 46 days
- £1500.00 divided by 46 = £32.60869
- 32.60869 multiplied by 7 = £228.26086