Access Payroll uses the Average NICable pay calculation to establish if an employee earns enough to meet the statutory payment requirements for sickness and parental pay. Below is the calculation used.
Average NICable calculation
For the employee to qualify for statutory payments, their average pay needs to be equal to or higher than the lower earnings limit for the tax year.
Sickness
Weekly
The sum of the previous eight weeks divided by eight.
Monthly
The sum of the previous two months multiplied by six and divided by 52.
Parental Pay
The qualifying period for parental pay is the 8th week before the expected date of birth.
Weekly
The sum of the previous eight weeks, before the qualifying period, divided by eight.
Monthly
The sum of the previous two months, before the qualifying period, multiplied by six and divided by 52.