The Average Weekly Earnings (AWE) section of the Statutory Maternity Pay (SMP): manually calculate your employee's payments guidance has been updated.
AWE must include all earnings on which Class 1 NICs are due, or would be due if they were high enough. SMP entitlement depends on the employee’s AWE in the relevant period – usually the eight week period before the qualifying week, which is the 15th week (Sunday to Saturday) before the week the baby is due. The AWE in the relevant period must not be less than the Lower Earnings Limit (LEL) for NICs which applies at the end of the QW:
- LEL for 2017 to 2018 is £113
- LEL for 2018 to 2019 is £116
Divide all earnings paid in that relevant period by the number of days, weeks or months in that period.
