Average Weekly Earnings (AWE) - SSP: change of pay pattern or irregular pay practice during relevant period
Change of pay pattern
Where an employee has a change of pay pattern, for example to both a weekly and a monthly pay day within the relevant period, each is calculated separately and then added together to establish the AWE.
Employee is sick from the start of the PIW - Monday 9 July 2012
Their pay pattern changed from calendar monthly to four weekly
The employee was paid calendar monthly on the last day of the month
From 1 June 2012 they are paid four weekly every fourth Friday
The relevant period is from 1 May to 29 June 2012
This is worked out by:
Four weekly relevant period is from 1 June 2012 (start of four weekly pay pattern) to 29 June (last pay day before start of PIW)
Calendar monthly relevant period from 1 May (day after last monthly payday) to 31 May 2012 (day before start of new pay pattern)
Paid at irregular intervals
Where an employee is usually paid at irregular intervals, for example because they don’t work for the employer every day or they are paid on a commission basis only, calculate the AWE as follows:
Note the first day the employee’s PIW.
- Find the date of the last normal pay day before the first day the employee is sick. This is the last day of the relevant period.
- Count back to the payday at least eight weeks from the date in1 and come forward one day.
- Add together all the earnings paid in between the dates in 2 and 1 (inclusive)
- Work out the number of days between the dates in 2 and 1 (inclusive).
- Divide the figure in 3 by the number of days in 4 (Do not round up or down to whole pence).
- Multiply the figure in 5 by7 (Do not round up or down to whole pence).