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HMRC internal manual

Statutory Payments Manual

From
HM Revenue & Customs
Updated
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Average Weekly Earnings (AWE) - SAP/SPP: backdated pay awards

If a backdated pay rise is received which includes a sum in respect of earnings paid in the relevant period re-calculation of the AWE is required.

If the employee’s entitlement to SAP/SPP is less than the standard rate, the employer must re-calculate the employee’s AWE and pay the extra SP due.

If the employee was not entitled to SAP/SPP the employer must re-calculate their AWE to check if their employee may now be entitled.

There is no benefit equivalent to SAP/SPP

Regulation 40(7) of the Statutory Paternity Pay and Statutory Adoption Pay (General) Regulations 2002 (SI2002/2822

Regulation 40(7) of the Statutory Paternity Pay and Statutory Adoption Pay (General) Regulations (Northern Ireland) 2002 (SR2002 No.378)