Do tips/service charge qualify for SMP calculations

Hello, My employer said I do not qualify for SMP, as SMP calculations are based on hours paid/worked, not including tips/service charge (in a restaurant). Is this correct? The tips fall under the gross income, so I believe should be included? Please note that this is a part-time job. Also, is this based on average calculations over the period, or on the minimum £123 earned EACH week in the qualifying period? Thank you.

You may wish to speak to ACAS on this as it will depend on exactly how the tips are paid (via your employer and subject to tax and NI, or if they are through a 3rd party) and your contract as well as the legislation. The calculation is on the overall average of the qualifying weeks, it may be that you have not hit the threshold in that period. You can check the calculations yourself https://www.gov.uk/maternity-paternity-pay-leave

Hi lucy_lu,
Tips and/or service charges may not be included if they are paid to you through a TRONC scheme.
This is because only earning subject to National Insurance are counted.
Tips paid through a TRONC scheme are not subject to National Insurance as per:-
 Guidance on tips, gratuities, service charges and troncs Updated 5 May 2022
Thank you.