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How monthly earnings are calculated

If they’ve been employed (or engaged by an employment business in the case of agency workers) for a full year, employers will claim for the higher of either:

The amount you earned in the same month last year

An average of your monthly earnings from the last year

If you’ve been employed for less than a year, employers will claim for an average of your monthly earnings since you started work. The same arrangements apply if your monthly pay varies such as if you are on a zero-hour contract.

If they started work in February 2020, employer will pro-rata your earnings from that month.

Bonuses, commissions and fees are not included as part of your monthly earnings.