HMRC has made a change to Average Weekly Earnings (AWE) for tax year 2018 to 2019 in its guidance on working out your employee’s Statutory Sick Pay (SSP) entitlement.
This guidance helps employers to calculate employees’ payments if their payroll software or GOV.UK calculator does not.
Calculating AWE is critical for working out an individual’s SSP entitlement. AWE must include all earnings on which Class 1 National Insurance contributions are due, or would be due if they were high enough. SSP entitlement depends on your employee’s AWE in a relevant period.
For the tax year 2018 to 2019 the AWE must be £116 or more. All earnings paid in that relevant period are divided by the number of days, weeks or months in that relevant period.
