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SMP relevant earnings

Does bonus paid during relevant period qualify as earnings for calculating SMP

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Employee is on annual salary of £40000.  Once targets are met additional amonuts are paid for bonus.  This is normally paid November, December and January each year.  Other months just basic pay.  Employee had baby on 01/04/2019.  Thus SMP payable from 02/04/2019 as she had not started her leave at this date.  The SMP calculator refers to the November and December payslip for the calculation.  Should I include the bonus paid as part of earnings for relevant income for the calculation purpose or just the regular wages.


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23rd Apr 2019 08:03

Include the bonus. SMP is based on all earnings paid in the relevant period which are subject to NI. It's the employee's good fortune that this includes the bonus.

Thanks (3)
to neiltonks
24th Apr 2019 14:27

Agreed - this is what our (expensive) payroll software used to do for SMP.

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