To ask you how you would work out my first month pay?

[DoloresKeane]

I am on £20k pa pro rata. I work 2 days per week. I started last month and I worked 8 out of the 9 available days.
I don't agree with the method used to compute my first month's pay.
How would you work this out?

[Psychobabble123]

20k divied by 12, divided by fill time hours eg 148. Times this amount by number of hours worked.

[Psychobabble123]

Probably not earnt enough for tax but deduct national insurance and pension contribution.

[Heratnumber7]

Do you have an hourly rate?

[DoloresKeane]

I work 15 hours per week.

[Justthejist]

As you are salaried, I wouldn't be calculating by hours. Just 20k/12=£1666.67

Then divide by 5 and x by 2, so £666.67.

I.e. You work two fifths of full time (5days) so get paid two fifths.

[lljkk]

Probably what Psychobabble said, so
20k/12 = 1667 for full time
2 days/week = 2/5 of 1667 = 667

Tax and NI out, and then whatever is left to OP.

[DoloresKeane]

£615.38?

[DoloresKeane]

£616.66 for a full month but I only worked 8 out of the 9

[DoloresKeane]

Doh.
£666.67 for a full month.

[Nikephorus]

£20,000 / 260 x 8
260 = number of weekdays in year (i.e. 52 weeks x 5)
Usual method for calculating pay where not you've worked your standard period.

[Nikephorus]

20000/260*8 = £615.38

[MissBax]

I would always divide by 52 as I thought this was how monthly earnings were calculated?? I could be wrong though... So 20,000 / 52 = 384.62 / 5 = £77 per day x 2 = £154 per week x 4 = £615 per month.

[kaytee87]

I’d take your day rate as £20k divided by 260 (number of week days in most years) so that’s approx £77 x that by 8 days works which is approx £616 ?

Must say except signing off expenses and time sheets payroll isn’t something I’ve ever done though.

[Heratnumber7]

OP.** Are you paid monthly, or 4 weekly?

Different employers pay people differently.* EG at my previous (American) employer our annual pay was divided up into 54. We were paid 4 weekly and in June and December we got 5 weeks pay.* And we were paid 3 weeks in arrears, one week in advance.

It’s probably worth checking with your employer what their pay schedule is.* It might not be a simple calculation.*

[Heratnumber7]

Sorry for the bold

[kaytee87]

@MissBax there aren’t exactly 4 weeks in a month so to work out someone’s monthly payment you just divide the salary by 12.

The reason op is confused (I think) is that she worked one less day in her first month than she usually would so would be receiving a days less wage

[kaytee87]

Your usual monthly salary would be approx £667

[lljkk]

Right, I forgot the 8/9 possible days. so that's 8/9 of 667, or 592.89 for the first month.

I also get £77 per day, so 8 x 77 = 615.

Both seem logical... oh dear, what did they want to pay you for gross, OP?

[cornflakegirl]

260 is the standard way, which always struck me as a bit odd given that you don't get paid a different monthly salary depending on the number of working days...

Depending on the number of working days in the month you start / leave it can work for you or against you. If there were 9 available days last month, then it worked in your favour - as lljkk calculated, you would have been paid less if they had worked out a 8/9 pro rata.

[Moanyoldcow]

For first month I'd work it out based on the day rate (20,000 / 260) and multiply by days worked = 615.38.

However there are other methods such as working out the proportion of the month you've worked (so 8/9) x usual monthly rate = 592 which is also a valid calculation.

Following months gross:

20,000 x 0.4 / 12 = £666.67

What have they paid you? What's to disagree with?

[DoloresKeane]

Thanks guys. I know my monthly pay but the manager is working out my first month as (8/9 )x (8000/12 ) = £592.59.

[Moanyoldcow]

That seems about right.

666.67 is usual monthly. Less 76.92 (1 day's salary) = 589.75.

As working days per month vary it's probably fairer to pay proportionally as your payroll department have done.

[PersianCatLady]

Thanks guys. I know my monthly pay but the manager is working out my first month as (8/9 )x (8000/12 ) = £592.59

It makes sense if you work it out like this -

£8,000 is your annual salary as it is 2/5 of £20,000.

£8,000/12 = £666 is your monthly salary.

If there are 9 available days then your daily rate is £74

If you worked 8 days then you should get £592

[DoloresKeane]

My daily rate is £76.92. I worked 8 days. I thought it should be £615.38.
Each month thereafter 1/12 of £8000.
Thanks everyone.

[kaytee87]

I suppose if they pay you by the daily rate method then by the end of the year they will have paid you £7,948.71 which is only £51.29 less than if you’d worked the full 9 days so technically an overpayment... although everywhere I’ve worked has worked it out like that.

Whereas by their way they will have paid you
£7,925.96 meaning they’ve taken off £74.04 which is closer really.

I’d want to know how they work it out for full time employees though to make sure you’re being treated the same.