Statutory Maternity Pay Guide for Employers (2012-2013)

Statutory Maternity Pay Guide for Employers (2012-2013)

Quick method for calculating Average Weekly Earnings (AWE)

If your employee earns:

  • less than £102.00 gross a week for a baby due between 17 July 2011 and 14 July 2012, or
  • less than £107.00 gross a week for a baby due between 15 July 2012 and 13 July 2013

they will not qualify for SMP. Go to the ‘Does your employee earn enough?’ section below.

If your employee sometimes earns more or less than £107.00 you must work out their AWE.

Use the weekly checksheet below or the monthly checksheet.

Checksheet for weekly paid – how to work out AWE

To work out AWE you must:

  • always use the relevant period – worked out using the checksheet
  • only include earnings paid in the relevant period.

To work out AWE for employees paid in weeks or multiples of a week

1. Find the date baby is due.
    /    /    
2. Find the date of the Saturday in the Qualifying Week.
    /    /    
3. Find the date of the last normal payday on or before that Saturday. This is the last day of the relevant period.
    /    /    
4. Count back to the payday at least eight weeks from the date in 3 and come forward one day, for example, if the payday is 22 June, enter 23 June. This is the first day of the relevant period.
    /    /    
5. Add together the earnings paid in between the dates at 4 and 3 (inclusive).
6. Divide the figure at 5 by the number of whole weeks in the relevant period.

(Do not round up or down to whole pence; use the unrounded amount to decide if your employee’s earnings are high enough.)

Does your employee earn enough?

If the amount at 6:

  • is at least £102.00 gross a week for babies due between 17 July 2011 and 14 July 2012, or
  • is at least £107.00 gross a week for babies due between 15 July 2012 and 13 July 2013

then your employee earns enough to meet this qualifying condition.

If they don’t earn at least the amounts shown above, they don’t qualify for SMP. You must give them form SMP1 within 7 days of the decision being made. This must all be done within 28 days from the date the employee gave notice of absence (or the date she gave birth if this had occurred earlier). Take a copy of the form MATB1 Maternity Certificate and give the original back to her.

If your employee earns enough, go to Has your employee given you sufficient notice?

Weekly paid employee without whole number of weeks in the relevant earnings period

This usually happens when you have to bring your employee’s normal payday forward because of bank holidays at Easter or Christmas.

Follow Steps 1 to 5 of the weekly checksheet above. At Step 6 divide the figure in step 5 by the number of weeks’ wages actually paid.

Employees paid in multiples of a week

Use the weekly checksheet above. At step 6 you must still divide the figure in step 5 by the number of whole weeks in the relevant period, even if your employee did not work for some of the weeks.

Employees paid monthly

Use the checksheet for monthly paid to work out their AWE.

Mistimed payments

A mistimed payment occurs when the date of the actual payment of earnings is made earlier or later than the normal contractual payday.

If your employee has a contractual payday this is always the normal payday, even if you pay them early or late in a particular week or month. A mistimed payment occurs when the date of the actual payment of earnings is made earlier or later than their normal payday. It is important that the following provision is only applied to regular payments of earnings paid other than on their normal day

Follow Steps 1 to 6 of the weekly checksheet above. At Step 6 divide the figure in step 5 by the number of weeks’ wages actually paid.

This type of payment should not be confused with a payroll error. For example, a mistake is made in the payroll resulting in a shortfall of pay when working out the AWE in the relevant period.

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