I have an employee who has started maternity leave this month. I understand that under Auto Enrolment, the employer must contribute an amount based on the normal amount of pay received rather than the SMP.
The concern I have is that this employee receives a basic monthly pay and a variable bonus. I have telephoned the pension regulator who cannot answer my query. They say that if contributions are based on Qualifying earnings, being a closed list, bonuses have to be included when paid normally. But suggested I speak to an employment law specialist for a definitive answer regarding this when an employee is on SMP.
Has anyone looked into this, as my line of thought is to look at the last 3 months bonus and average them out and combine with the normal basic pay to achieve a figure to base the employers contributions on whilst the employee is on SMP. I really feel TPR should have a definitive answer to legislation they bring in but could not give me one.
Many thanks in advance.