Hello everyone,
I was wondering if anyone would know if in calculating the SMP rate for the first six weeks only contractual overtime payments are taken into account?
Having looked on the DWP-guidance for SMP, I see that "Sick pay, overtime, bonus payments, arrears of pay and even, in most circumstances, holiday pay, must all be included if you actually get them at this time. It is when you get the money that counts, not when it was earned.
Average earnings should include all earnings and contractual benefits on which you pay National Insurance contributions, except Class 1B contributions which arise from a PAYE tax settlement agreement which your employer makes with HM Revenue and Customs."
To me, quite simply, this means any payments for which you pay NI-contributions.
I will be doing quite a lot of overtime within the eight weeks before my maternity leave begins and for this I will receive a payment according to the company overtime policy. But my employer is now saying that these overtime payments will not be taken into account in calculating the SMP rate for the first six weeks, because it is not contractual overtime, but overtime at an "ad hoc"-basis...
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SMP calculation first 6 weeks. What counts as overtime payments
25 replies
Marabou · 04/02/2011 10:31
OP posts:
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