UK: Average Earnings (AWE) Amount Calculated Incorrectly (Doc ID 2516249.1)

Last updated on APRIL 04, 2025

Applies to:

Symptoms

Problem Statement:

Average Earnings Amount calculated incorrectly when enough payroll periods
not present to calculate the start of relevant period correctly.

Steps to Reproduce:
The issue can be reproduced at will with the following steps:

1. New Entrant was set up with a start date of 01/07/2017.
2. For example: An Annual Salary of £26000 was applied.
3. Quick Pays were run from July 2017 - December 2017.
4. Maternity record was then set up and Maternity Leave started on 01 JAN 2018.
5. After clicking the Statutory Payments button an Average Earnings figure of £541.67 was displayed.
6. The following overrides were carried out to populate the SMP Entries:

Late absence notification
Insufficient employment

7. Quick Pay for January 2018 run.

8. Expected that the Average Earnings Amount should have been calculated as follows:

Qualifying Week 17th Sept 2017
July 17 and August 17 salary used for Average Earnings calculation.
£2166.67 + £2166.67 = £4333.64 * 6 = £26000.04 / 52 = £500.00

Cause

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