Employment Legislation

Maternity & Parental Leave Pay: How to Calculate Average Weekly Earnings for Furloughed Employees?

Legislation

Maternity & Parental Leave Pay: How to Calculate Average Weekly Earnings for Furloughed Employees?

Due Date

25 April 2020

Summary

Where an employee was on furlough and paid with the help of the Coronavirus Job Retention Scheme (CJRS), and they started a period of family-related statutory pay on or after 25 April 2020, new rules apply to the calculation of their average weekly earnings (AWE). The earnings used to calculate AWE for that period will be the higher of:

a. What they actually receive from their employer; or

b. What they would have received from their employer had they not been on furlough

This is to ensure the statutory rates of pay are not affected if employee’s earnings are lower than normal as a result of being furloughed.

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