Statutory Maternity Pay Guide for Employers (2012-2013)

Statutory Maternity Pay Guide for Employers (2012-2013)

Checksheet for monthly paid – how to work out AWE

To work out AWE you must:

  • convert monthly pay into an average weekly amount
  • always use the relevant period – worked out using the checksheet
  • only include earnings from the relevant period.

To work out AWE for employees paid monthly

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. Work out how many whole months there are between the dates in 4 and 3 (inclusive). If there is not a whole number of months see ‘Rounding to the nearest whole month when there is not a whole number of months in the relevant period’ below.
7. Divide the figure in 5 by the number of whole months in 6.
8. Multiply the figure in 7 by 12.
9. Divide the figure in 8 by 52.

(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 9:

  • 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.

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

Rounding to the nearest whole number of months when there is not a whole number of months in the relevant period

When you get to Step 6 work out the number of rounded months as follows:

  • count the number of whole months
  • count the number of odd days
  • round the number of odd days up or down in line with these rounding rules.

If the date at 3 is in:

  • February round 14 days or less down and 15 days or more up
  • any month except February round 15 days or less down and 16 days or more up.

Then use the number of rounded months at Step 6 and follow the rest of the steps above.

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