Statutory Sick Pay: manually calculate your employee’s payments
14 October 2016
14 October 2016
Clarification has been added to SSP guidance on the section 'overpaid/underpaid earnings during the relevant period'.
The revised text reads as follows:
Overpaid/underpaid earnings during the relevant period
AWE are always based on all earnings actually paid to the employee within the relevant period, regardless of any over or underpaid wages in that period. Where over or under payments of wages occur within the relevant period, they are treated in the same way as all other earnings paid in that period for calculating AWE.
If incorrect earnings have been paid, which would produce a situation that worked to the disadvantage of either the employer or employee, and there is documentary evidence of an agreement between both parties as to the actual earnings that should have been paid, you should use the earnings agreed to calculate an employee’s AWE.
Where there is no evidence of an agreement, you should calculate the AWE using the earnings actually paid
Statutory Sick Pay: manually calculate your employee’s payments