HMRC have updated statutory payment average earnings calculation
- 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
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