Any wages experts on here, or anyone who can help with this calculation?

[TeapotCollection]

I’m considering requesting a reduction in my working hours from 40 to 37 hours. I’ve worked out my reduction in pay like this:

Multiply monthly take home pay by 12, divide that by 52 then divide that by 40 to get my take home hourly rate

I then multiplied that by 37 to get my new weekly take home

Is that right? Is it as simple as that or am I missing something?

I'm no expert but I would calculate it like this:

37 hours is 92.5% of your full time role.

Multiply your annual salary (before tax etc) by 0.925. This will give you your new annual salary.

Then find an online salary calculator to work out take-home.

You don't need to divide by 52 once you've worked out the monthy pay, did you not get a ridiculously low answer?

You need to speak to your employer to find out how they calculate it, different ways will give you slightly different answers but @Madickenxx method will give you a good approximation if not the exact figure

Thank you both 🙂

Dividing by 52 after multiplying by 12 would I think have given me my weekly pay? It said £346 which I’m sure is about right

The above method looks much easier than mine though, I will try that

listentotaxman.com is a good website

You need to do the calculation on your gross pay, before any deductions for tax etc.

Then you can just take monthly gross pay, divide by 40 and multiple by 37. Job done.

Then as PP said use an online salary calculator to get your take home pay.

www.thesalarycalculator.co.uk/salary.php

Yes you're correct. Gross monthly pay x 12 /52/40 gives you your current hourly rate. X 37 gives you your new weekly pay. X 52/12 gives you your new monthly gross pay. I run payrolls.

Thanks very much everyone 🙂

I’ve worked it out to a reduction of just over £100 a month. Going to speak to my husband later and hopefully get my request in tomorrow

Just be aware some payroll systems work on 52.2 weeks in a year I.e 365.25/7 = 52.178 rounded up to 52.2.

It's not what you asked but I'd suggest looking at the implications to your pension in reducing hours. We (ie out of family pot) overpay my pension to the equivalent value of me being FT.

You will also receive less holiday entitlement.

You need to do it on gross pay, then use a calculator to work out net. Tax isn't linear. But your method will get you close.

@TeapotCollection

I’m considering requesting a reduction in my working hours from 40 to 37 hours. I’ve worked out my reduction in pay like this:

Multiply monthly take home pay by 12, divide that by 52 then divide that by 40 to get my take home hourly rate

I then multiplied that by 37 to get my new weekly take home

Is that right? Is it as simple as that or am I missing something?

If you do it on take home pay it won’t be right - do it on pay before tax etc.