How will my last wages be worked out?

[Workthisout]

I gave my one months notice on the 18th January which will take us up to 18th February.

Employer has replied saying my contract will end on the 16th February. This is a Friday, the 18th would fall on a Sunday.

I have an annual salary of £40,000 paid monthly in arrears on the 25th. I started work (years ago) on the 1st June and got paid on the 25th June for the full month of June.

How will they work my last months pay out?

Will they look at the number of working days in the month and give me 12/20th of my monthly wage? Ie. £1524.

Or will they look at number of calendar days of the month and give me 16/28th of my monthly wage? Ie. £1451.

Or will they look at my average daily wage and multiply by the number of days I'm working? Ie. £1407?

Please can somebody shed some light on how it "should be"?

Just to add, it does not say anything in my contract about how this would be worked out.

I would expect them to pay you for 12 working days in Feb. But I don't calculate the same as you. There are 260 working days in a year, £40000/260x12 is £1846 by my calculations.

Thanks flowery. I've deducted tax in my calculations, sorry I didn't make that clear.

So that would mean I won't get a full months wages in February because of the reduced number of days?

So old employer pays me for 12 days = £1407
New employer pays me for 8 days = £938

Total pay for month = £2345

Where a normal February would've been £2540?

I'm not going to do tax calculations, and I'm assuming both employers would calculate it the same as I've usually seen it done, but basically yes. This is why it's always sensible to leave a job at the end of the month rather than in the middle.

I'd have said from your post that they pay on 25th but up to the 28th so they will pay you 12 working days for 1-16. 40000/52 = 769.23
769.23/5 = 153.85 per day x 12 days = 1846.20 gross. That's how I'd work it out for one of my clients

I think it may also depend on annual leave entitlement- if you haven’t used all you’re entitled to it will be paid but if you’ve used more it will be deducted.

I'm being made to take any outstanding annual leave before leaving.

It will depend how your company works out part month pay - where i used to work you would have got 16/28.

Agree it depends. We're paid part in advance, part in arrears - so we get paid on the 15th for the 1st to 31st of the month.