SMP Average Weekly Earnings Calculator
Determine your eligibility and payment rates for Statutory Maternity Pay
| Metric | Value | Notes |
|---|---|---|
| Qualifying Week (QW) | – | 15th week before due date |
| Lower Earnings Limit | £123.00 | Minimum AWE required (2024/25) |
| Calculation Logic | – | Based on frequency |
Payment Projection Chart
Comparison of your Regular Weekly Pay vs. SMP Phases.
What is Average Weekly Earnings for Statutory Maternity Pay?
The average weekly earnings rules used for calculating statutory maternity pay are a specific set of guidelines established by HMRC in the UK to determine how much maternity pay an employee is entitled to. Unlike standard salary calculations, this figure is derived from a specific “Relevant Period” of employment leading up to the baby’s due date.
This calculation is critical because it dictates the value of the first 6 weeks of your Statutory Maternity Pay (SMP), which is paid at 90% of your Average Weekly Earnings (AWE). Furthermore, to qualify for SMP at all, your AWE must exceed the Lower Earnings Limit (LEL), which is currently £123.00 per week for the 2024/25 tax year.
Employees often misconceive that their AWE is simply their annual salary divided by 52. However, the calculation is strictly based on what was actually paid during the roughly 8-week period prior to the Qualifying Week.
Average Weekly Earnings Formula and Explanation
To calculate your AWE accurately, you must first identify the “Relevant Period”. This period ends on the last normal payday on or before the Saturday of the Qualifying Week (the 15th week before the expected week of childbirth). It starts immediately after the payday that falls at least 8 weeks prior to that end date.
The mathematical formula varies slightly depending on your pay frequency:
| Variable / Term | Meaning | Formula Logic |
|---|---|---|
| Total Gross Pay | Sum of all pre-tax earnings in the relevant period. | Include salary, overtime, bonuses. |
| Weekly Paid | Paid every week. | (Total Pay ÷ Number of Weeks) |
| Monthly Paid | Paid once per calendar month. | (Total Pay ÷ Number of Months) × 12 ÷ 52 |
| Relevant Period | The snapshot of time used for averages. | Approx. 8 weeks ending in the Qualifying Week. |
The Monthly Formula Step-by-Step:
- Sum the gross pay from the pay slips falling in the relevant period (usually 2 months).
- Divide by the number of months (usually 2).
- Multiply by 12 to get an annual figure.
- Divide by 52 to get the weekly average.
Practical Examples of AWE Calculation
Example 1: Monthly Paid Employee
Sarah is expecting her baby in October. Her “Qualifying Week” is in late June. The relevant period includes her payslips from April and May.
- April Pay: £2,500 (Base) + £500 (Bonus) = £3,000
- May Pay: £2,500 (Base)
- Total Gross Pay: £5,500
- Calculation: (£5,500 ÷ 2) × 12 ÷ 52 = £634.61
Sarah’s Average Weekly Earnings are £634.61. Her first 6 weeks of SMP will be 90% of this amount (£571.15).
Example 2: Weekly Paid Employee with Overtime
Jen is paid weekly. Her relevant period spans 8 weeks. She worked significant overtime in 3 of those weeks.
- Total Pay over 8 weeks: £4,200 (including £600 overtime).
- Calculation: £4,200 ÷ 8 = £525.00
Even though her base contract is lower, the overtime boosts her AWE to £525.00, increasing her maternity pay entitlement.
How to Use This SMP Calculator
- Enter the Due Date: Input the expected date of delivery from your MATB1 form. This automatically calculates the “Qualifying Week”.
- Select Pay Frequency: Choose whether you are paid Weekly, Monthly, etc.
- Input Earnings: Enter the sum of the gross pay found on the payslips that fall within the relevant period.
- Set Period Count: Enter how many payslips (weeks or months) you summed up (e.g., 2 for monthly paid employees).
- Review Results: The tool will display your AWE, check if you meet the £123.00 threshold, and project your weekly payments.
Use the “Copy Results” button to save these figures for your discussions with HR or for your own financial planning records.
Key Factors That Affect Average Weekly Earnings
Several financial and timing factors can significantly alter the result of your average weekly earnings rules used for calculating statutory maternity pay.
- Timing of Bonuses: If an annual bonus is paid within your relevant period, it can artificially inflate your AWE, significantly increasing your SMP for the first 6 weeks.
- Salary Sacrifice Schemes: Pension contributions or childcare vouchers taken via salary sacrifice reduce your gross pay subject to NI. This lowers your AWE and subsequently your maternity pay.
- Pay Rises: If you receive a pay rise effective anytime between the start of the relevant period and the end of your maternity leave, your SMP must be recalculated as if the rise happened at the start.
- Unpaid Leave: Taking unpaid leave during the relevant period will lower the average. In some cases, you may be able to exclude these weeks if they don’t count as “normal” paydays, though rules are strict.
- Irregular Payments: If you are paid irregularly, the calculation generally averages the earnings over the period regardless of when the work was done, provided the money was paid in that window.
- The Lower Earnings Limit (LEL): If your calculated AWE falls below £123.00, you are not eligible for SMP and must apply for Maternity Allowance instead.
Frequently Asked Questions (FAQ)
What if my baby is born early?
If your baby is born before the Qualifying Week, the relevant period is calculated based on the 8 weeks ending the Saturday before the birth week. You are still entitled to SMP if you meet the employment conditions.
Do “Average Weekly Earnings” include overtime?
Yes. All gross earnings subject to Class 1 National Insurance contributions, including overtime, commission, and bonuses, are included in the calculation.
Can I choose a different period to calculate my average?
No. The rules for the “relevant period” are statutory. You cannot choose your highest earning months from the year; it must be the specific period ending in the Qualifying Week.
How does a pay rise affect my SMP?
If you get a pay rise that is effective from the start of the relevant period up to the end of your statutory maternity leave, your employer must recalculate your SMP. Your AWE will be adjusted to reflect the higher pay rate.
Does Statutory Sick Pay (SSP) affect my average?
Yes. If you received SSP during the relevant period, you use the amount actually paid. This might lower your average. However, if you have very low earnings, you might miss the LEL threshold.
Is AWE calculated on Gross or Net pay?
AWE is always calculated on Gross pay (before tax and National Insurance are deducted).
What is the current SMP rate cap?
For the first 6 weeks, there is no cap; it is 90% of your AWE. For the remaining 33 weeks, it is capped at £184.03 (2024/25 rate) or 90% of AWE, whichever is lower.
What if I have two jobs?
If you have two jobs, SMP is calculated separately for each employer. You can claim SMP from both if you qualify for both, effectively doubling your entitlement.
Related Tools and Internal Resources
Ensure you are fully prepared for your leave by exploring our other resources:
- Maternity Pay Schedule Generator – Map out your exact payment dates.
- Shared Parental Leave Calculator – Check if sharing leave is financially beneficial.
- SMP vs Maternity Allowance Guide – Understand the differences if you don’t qualify for SMP.
- Tax Credits & Child Benefit Calculator – Estimate your household income changes.
- Pension During Maternity Leave – How your contributions are affected.
- Return to Work Planner – Calculate childcare costs vs income.