Statutory Payment for furloughed employees – Revised guidance published #COVID19 #coronavirus

Z&R by PSP 2020

HMRC have updated statutory payment average earnings calculation

‘The Maternity Allowance, Statutory Maternity Pay, Statutory Paternity Pay, Statutory Adoption Pay, Statutory Shared Parental Pay and Statutory Parental Bereavement Pay (Normal Weekly Earnings etc.) (Coronavirus) (Amendment) Regulations 2020’ amend

  • the Statutory Maternity Pay (General) Regulations 1986 (S.I. 1986/1960),
  • the Social Security (Maternity Allowance) (Earnings) Regulations 2000 (S.I. 2000/688)
  • the Statutory Paternity Pay and Statutory Adoption Pay (General) Regulations 2002 (S.I. 2002/2822)
  • the Statutory Shared Parental Pay (General) Regulations 2014 (S.I. 2014/3051)
  • the Statutory Parental Bereavement Pay (General) Regulations 2020 (S.I. 2020/233).

The amendments apply for calculating a person’s normal weekly earnings for the purposes of determining

entitlement to, and rate of payment of, respectively, statutory maternity pay, statutory paternity pay, statutory adoption pay, statutory shared parental pay and statutory parental bereavement pay. The amendments in regulation 4 apply for calculating the average weekly amount of specified payments made to a woman for the purpose of determining entitlement to, and rate of payment of, a maternity allowance. Regulation 2 provides that these amendments are to apply where the first day of the period in respect of which payment of any of the benefits is to be made is on or after the day on which these Regulations come into force:

  • entitlement
  • rate of payment

It applies to furloughed employees. The claimant’s normal weekly earnings are to be calculated as if the person had not been furloughed and apply where the employee’s period of family-related statutory pay begins on or after 25 April 2020.

Where it’s not clear what the employee would have received, a helpful starting point is the reference salary used to determine how much you can claim through the CJRS, also consider payments the employee was due to receive in the relevant period that would have been classed as earnings.

This could include:

  • bonus payments
  • commission payments

The following buttons link to the revised GOV.UK guidance:

Statutory Maternity Pay
(SMP)
work out payment

SMP
circumstances
that affect payment

Statutory Paternity Pay
(SPP)
calculate payment

SPP
circumstances
that affect payment

Statutory Adoption Pay
(SAP)
calculate payment

SAP
circumstances
that affect payment

ShPP
Employers
Technical guide

Statutory Parental Bereavement Pay
(SPBP)
calculate payment

SPBP
circumstances
that affect payment

PAYadvice.UK 27/4/2020 updated 12/5/2020

One thought on “Statutory Payment for furloughed employees – Revised guidance published #COVID19 #coronavirus

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s