Payroll Legislation

Is Maternity / Paternity Pay Affected if You've Been Furloughed?

Legislation

Is Maternity / Paternity Pay Affected if You've Been Furloughed?

Due Date

25 April 2020

Summary

Average weekly earnings calculations have changed for furloughed employees taking maternity or paternity pay.

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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