Automatic AWE Calculation for New Hires’ SSP Absences

For sickness absences on or after 6 April 2026, SSP is the lower of 80% of AWE and the statutory weekly SSP rate. The payroll date basis used to calculate AWE can therefore affect the payment.

For new hires with some processed payroll data but less than the full eight-week relevant period, the application can use your selected payroll date basis to calculate AWE automatically. Previously, it used the date paid as the end date whenever payroll data was available.

Choosing the payroll date basis helps payroll teams apply a consistent AWE calculation for new hires and determine SSP using the intended date basis.

Steps to enable and configure

1.  Create an Oracle Payroll fast formula named UK_CUSTOM_NEW_HIRE_DATE_AWE_CALC.

2.  Set the formula’s effective start date to the date from which you want the selected payroll date basis to apply.

3.  Return one of these supported values as use_date: PERIOD_END_DATE, CUT_OFF_DATE, EARN_DATE, or DATE_PAID.

For example: 

use_date = 'PERIOD_END_DATE'

RETURN use_date

Tips and considerations

  • Creating the formula is optional. Create it only if you want the application to calculate AWE automatically for new hires’ sickness absences.
  • The formula applies only to sickness absences.
  • Automatic calculation requires at least one payroll process for the new hire. If no earnings have been processed when sick leave starts, set Override Average Weekly Earnings on the absence case.
  • If no formula is effective for the absence date, the application sets AWE to 0 and creates an AWE Calculation Basis Not Configured certificate.
  • An unsupported formula return value creates an Invalid AWE Calculation Date Option certificate.
  • You can calculate AWE manually and enter it in Override Average Weekly Earnings on the absence case. An override takes precedence over the formula-based calculation.

Key resources

See https://support.oracle.com/support/?documentId=KB931841 on My Oracle Support for more details.