Feel like I'm being ripped off with wages

[Cremeegg456]

I work through an agency, and I'm paid £11.50 per hour, but via an umbrella company. My pay is also inclusive of 12.07% holiday pay as standard.

However for 34 hours of work (not including my unpaid breaks) i come out with £290 net per week.

I calculated and this is the same net pay that somebody on £9.50 an hour gross (the new minimum wage) gets for that amount of hours.

So I'm being paid minimum wage despite the advertised salary.

I've asked my agency if I can change to PAYE, which I've been told is possible. However PAYE is a lower hourly rate than via the umbrella, so I doubt I'll be better off each month.

As my 'holiday pay" is also included in my hourly rate, I recently took 4 days off work for the first time since last July, and so was £200 out of pocket.

I like the role but I've come to realise I'm being paid peanuts, and that it isn't stable. Does this sound like too low a salary for you ?

Far too low. I’d start looking for something else ASAP.

Rolled up holiday pay is illegal.

It's in childcare which is notoriously low paid I know. I do enjoy the work but I have qualifications and I'm 31, I need to look elsewhere

How are the figures laid out in your payslip?

It would be around £336 net if on PAYE at £11.50, but with the umbrella company we pay employers NI costs as well as an apprenticeship levy

So I'm losing approx £36 per week

Are you a nanny? That is incredibly underpaid and if you are plenty of better paid positions out there!

I’ve just left my job in a private nursery. I’m 42, have an early years degree and 20 years experience. I was managing a busy baby room for £10 an hour.

As PP have said, rolled up holiday pay is illegal.

I would change jobs if you possibly can, they are taking the piss.

It's a preschool, you are right though!

I'm surprised about the rolled up holiday pay. I know of several supply agencies that openly use it

Agree years of experience and qualifications seem to not count for much sometimes :/ i found out I'm on the same wage as a 19 year old the other day

Rolled up holiday pay is allowed if on a zero hours contract though.

It isn't illegal if your an agency worker or on a zero hour contract. Hope you get your pay sorted op x

I've looked an the uk pay calculator you should get around £330 per week

Are you doing the same job as the 19 year old? I can’t see why you’re bringing age into it as it’s irrelevant.

If you feel you are being underpaid, you need to look for something new or renegotiate.

Is this the same place that never has enough staff?

I’d double check with the umbrella company what your PAYE rate is and Umbrella rate. When I’ve done temp work they told me 2 different rates one is the umbrella rate which was higher but what was charged to the company for using them and then there was my PAYE rate which was lower. Maybe the rate they’ve told you incorrectly is the umbrella rate and not the PAYE rate. By any chance it’s not a umbrella company with the initials PS

It's very sneaky to say the pay is £11.50 per hour without telling you that the figure includes holiday pay and the other stuff.

Can you find something else? I'm sure there must be lots of other childcare jobs about.

I always say don't even bother to challenge it. Vote with your feet.

That's why I won't work umbrella, all the disadvantage of being employed with all the disadvantage of being self employed but I can prove I am outside IR 35, so earlier

I brought up her age as she doesn't have the same qualifications as I have nor the same experience, that's why it's relevant.

The figure I gave is the umbrella rate including holiday pay as far as I know but will have to double check

Did you used to work in care?

There will be a deduction from your weekly money to pay your payroll company probably, that's where the discrepancy will come from.

@BernadetteRostankowskiWolowitz

Rolled up holiday pay is allowed if on a zero hours contract though.

Not necessarily, am pretty sure it depends whether you'd be classed as a worker or employee.