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Original poster

Please help me understand my payslip

23 replies

Diolchynfawr · 31/10/2023 15:24

I work 37h a week, full time.
My annual salary is £44782, but the numbers seem to show I am being paid less? I work in the public sector for a local authority and I want to check here that I am not missing something before I question this with HR.

My payslip shows my hourly pay (under the ‘rate’ heading) as £23.21

23.21 x 37 (hours per week) = 858.77
858.77 (weekly wage) x 52 = £44656 which surely should be equal to my annual salary… but it’s not? It’s £126 short.

Can anyone suggest why this might not be adding up?

Many thanks

OP posts:
Hedonism · 31/10/2023 15:29

There are slightly more than 52 weeks in a year. It's 52.14
(365/7 = 52.14285)

Original poster
Diolchynfawr · 31/10/2023 15:38

Hedonism · 31/10/2023 15:29

There are slightly more than 52 weeks in a year. It's 52.14
(365/7 = 52.14285)

Edited

That explains it! Thanks so much for preventing me from looking like a plonker :-)

OP posts:
MajorBarbara · 31/10/2023 15:38

Hedonism · 31/10/2023 15:29

There are slightly more than 52 weeks in a year. It's 52.14
(365/7 = 52.14285)

Edited

£23.21 x 37 = £858.77 per week.

365 / 7 = 52.1428 weeks in a year to 4 decimal places

52.1428 x £858.77 = £44,778.67

That seems to be £4 per year, or 33 pence a month possible underpayment? Maybe worth asking payroll? I would, just out of curiosity. Maybe something's got rounded somewhere. Or accounting for leap years or something?

Original poster
Diolchynfawr · 31/10/2023 15:48

MajorBarbara · 31/10/2023 15:38

£23.21 x 37 = £858.77 per week.

365 / 7 = 52.1428 weeks in a year to 4 decimal places

52.1428 x £858.77 = £44,778.67

That seems to be £4 per year, or 33 pence a month possible underpayment? Maybe worth asking payroll? I would, just out of curiosity. Maybe something's got rounded somewhere. Or accounting for leap years or something?

Edited
Show quote history

Thanks, you’re right. I will bring it up the next time I have an opportunity.

OP posts:
Sisterpita · 31/10/2023 19:43

Actually there are 365.25 days in an average year / 7 = 52.178 the CS round up to 52.2.

I suspect your hourly rate is 37 hours x 52.15 (52.142 rounded up) = 1929.55 (rounded up to 1930). £44,782/ 1930 = £23.203 ( rounded up to £23.21). You always round up or you can unintentionally underpay.

Your hourly rate and monthly pay are different because each month can have between 20 and 23 working days but your salary is paid as 1/12th.

Unfortunately our calendar system does not work well with payroll e.g.
Week = 5 working days, 7 calendar days
Month = 20 to 23 working days, 28 to 31 calendar days
Year = 260 to 262 (I think) working days and 365 to 366 calendar days.

FrostieBoabby · 31/10/2023 19:55

Remember there are 366 days this fiscal year so 366/7 = 52.29

Sisterpita · 31/10/2023 20:23

@FrostieBoabby whilst you are correct, contracts and payroll systems in the public sector typically work on a fixed annual salary. Plus it would equate to a lower hourly rate, not favourable if the op works overtime.

37 x 52.29 = 1934.73

£44,782 / 1934.73 = £23.146 or £23.15 per hour.

FrostieBoabby · 31/10/2023 20:28

Sisterpita · 31/10/2023 20:23

@FrostieBoabby whilst you are correct, contracts and payroll systems in the public sector typically work on a fixed annual salary. Plus it would equate to a lower hourly rate, not favourable if the op works overtime.

37 x 52.29 = 1934.73

£44,782 / 1934.73 = £23.146 or £23.15 per hour.

Yeah, would be interesting to see the coding in the payroll system as whatever you work it, the hourly rate isn't bang on to the salary.

As a side note, does that mean that public sector workers on a salary effectively work one day unpaid in each leap year?

Sisterpita · 31/10/2023 20:51

@FrostieBoabby in my experience a lot use either FTE salary /52.2 or 52 / 37 to get hourly rate.

mynumber · 31/10/2023 20:58

Very interested to see the answer to @FrostieBoabby leap year question!

Sisterpita · 31/10/2023 20:59

@FrostieBoabby As a side note, does that mean that public sector workers on a salary effectively work one day unpaid in each leap year?
Theoretically all employees paid an annual salary are overpaid 1/4 of a day in 3 years and underpaid 3/4 of a day in the 4th so it evens out. So in a 4 year period you get 4 x annual salary.

However, it’s more complicated than that as different calculations are used in different circumstances.

Sisterpita · 31/10/2023 21:04

@mynumber I have to be very careful what I say but the hourly rate calculation FTE annual salary / 52.2 or 52 / 37 is not a calculation I would be too concerned about as a CS.

The 365 method of calculating a day’s pay is a different issue.

shardash · 31/10/2023 21:08

If you're on an annual salary, why aren't they just dividing it by 12 and paying you that amount each month instead of showing it as an hourly rate?

Sisterpita · 31/10/2023 21:17

shardash · 31/10/2023 21:08

If you're on an annual salary, why aren't they just dividing it by 12 and paying you that amount each month instead of showing it as an hourly rate?

If you read the OPs post they are being paid 1/12th but an hourly rate is quoted for information. The op was trying to reconcile the two.

FrostieBoabby · 31/10/2023 21:54

I get a salary as well but any overtime/enhancements is an hourly rate e.g for working Xmas day etc

Original poster
Diolchynfawr · 31/10/2023 22:22

Sisterpita · 31/10/2023 19:43

Actually there are 365.25 days in an average year / 7 = 52.178 the CS round up to 52.2.

I suspect your hourly rate is 37 hours x 52.15 (52.142 rounded up) = 1929.55 (rounded up to 1930). £44,782/ 1930 = £23.203 ( rounded up to £23.21). You always round up or you can unintentionally underpay.

Your hourly rate and monthly pay are different because each month can have between 20 and 23 working days but your salary is paid as 1/12th.

Unfortunately our calendar system does not work well with payroll e.g.
Week = 5 working days, 7 calendar days
Month = 20 to 23 working days, 28 to 31 calendar days
Year = 260 to 262 (I think) working days and 365 to 366 calendar days.

Thank you! This is so much more complicated than I had assumed.

OP posts:
Sisterpita · 31/10/2023 22:27

@Diolchynfawr 😂 I know, thankfully I’m now retired.

shardash · 01/11/2023 13:59

Sisterpita · 31/10/2023 21:17

If you read the OPs post they are being paid 1/12th but an hourly rate is quoted for information. The op was trying to reconcile the two.

Show quote history

I did read the OP's posts. I tend to do that before commenting. I've had monthly payslips since 1979 and have never had an hourly rate shown on any of them.

Sisterpita · 01/11/2023 15:18

@shardash it will very from sector to sector, employer to employer.

Just because you haven’t experienced it doesn’t mean payslips for salaried staff with an hourly rate quoted don’t exist.

The op was trying to reconcile the two figures, a perfectly reasonable question.

shardash · 01/11/2023 22:15

Sisterpita · 01/11/2023 15:18

@shardash it will very from sector to sector, employer to employer.

Just because you haven’t experienced it doesn’t mean payslips for salaried staff with an hourly rate quoted don’t exist.

The op was trying to reconcile the two figures, a perfectly reasonable question.

Really. So my experience of umpteen employments over the last 43 years, all in the finance sector and some of them managing entire accounts departments counts for nothing. Great.

Sisterpita · 01/11/2023 23:39

@shardash where exactly have I dismissed your experience? I acknowledged it can vary from sector to sector. My background is public sector pay, which is why I have seen payslips that include hourly rate for salaried staff.

VanGoghsDog · 02/11/2023 00:42

Well, I've worked all over the place, and I've seen some payslips with the hourly rate, and and without!
Both are perfectly valid.

Sisterpita · 02/11/2023 07:38

@VanGoghsDog exactly.

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