I think I've been underpaid for months!

[Scarlett555]

My full time salary is £46,100 for 37 hours a week.

At the beginning of the year I reduced my hours to 32 per week making my pro rata salary around £39,800

I pay 7% into my pension and £90 to add my partner to the private health insurance.

Latest payslip was £1,990 per month.

Until this month I was claiming £243 p/m in childcare vouchers and my pay was around £1,850 p/m

Mentioned this to a good friend and she thought I should be bringing home at least £2,300 p/m even with the deductions.

Tried an online calculator thing and she seems to be right!

Is this definitely right before I go into work all guns blazing tomorrow? Any payroll people?

I have never seen a pension contribution detailed as salary sacrifice before, its usually a benefit like paying for a company car/bike/travel loan.

Your pension contributions in the bottom right is also showing as zero, however the employer contribution matches the salary sacrifice amount?! Very strange...

Basic 12 x 2673 = 32000

Yep 28 rather than 32 I think.

Provided there were no other contractual changes for paid/unpaid time it’s 4 hours out a week.

Yes I am working 8 hours over 4 days with half an hour unpaid lunch so 9.00 - 17.30

First thing I noticed was your basic pay. Even without a calculator you can see you are earning less than £35k . These your problem.

By my calculations your basic pay should be £3,322 per month.

I don't understand why Taxable Pay (2,763.79) is higher than Gross Pay (2,673.16). The difference is £90.53 which, possibly coincidentally, is the same amount you pay for medical. But that's not deducted until after Gross Pay is calculated.

I also don't understand Pension showing as zero. Are you sure SAL EXCHANGE is actually a pension scheme and not a share purchase scheme or something?

It looks a straightforward error, take your contract change paperwork showing you should be on 32 hours and what you calculate your basic to be. You need them to correct this tax year, last tax year and your bonus if that was based on % of prorated salary.

@melissasummerfield - my company does that for pension contributions, it reduces the tax liability.

@plexie medical cover is a taxable benefit so OP pays tax on it, same would apply to company car benefit if an employee took extra money in lieu of a company car

I've just Googled Salary Exchange (aka salary sacrifice). It's a method by which employers deduct your pension contribution and pay it all themselves, thereby reducing both your and their NI contributions. So that will be why it's not showing as 'Pension'.

medical cover is a taxable benefit so OP pays tax on it, same would apply to company car benefit if an employee took extra money in lieu of a company car

OP’s tax code takes care of that.

I can't see childcare vouchers in here either - looks like the salary sacrifice deduction is pension only.

Thanks @DropZoneOne. So in effect is OP being taxed twice on that £90? First as PAYE as part of her salary, then again when it's used to purchase the medical cover?

I understand taxing benefits in kind like a car or phone if they're used for personal use, because the employee is receiving a benefit in addition to their salary, but in this case they're not actually giving the employee anything, other than the opportunity to get medical cover. Or is the cover cheaper than it would be on the open market, which means it's an employee benefit and therefore taxable?

So in effect is OP being taxed twice on that £90? First as PAYE as part of her salary, then again when it's used to purchase the medical cover?

The £90 is additional cover for her partner. Presumably the company covers the cost of hers and that’s what she is taxed on.

The £90 for her partner comes from taxed income. That bit is right.

I can't see childcare vouchers in here either

The first post says she’s stopped childcare vouchers.

Thanks for the replies, I found the letter confirming my change of hours and pay (relevant bit attached) so it seems there has definitely been a mistake and I haven't been paid right since my hours changed at the beginning of the year.

I am hoping my work will be able to refund the difference I am owed asap. Might even pay for a little summer holiday!

£200 will be your childcare.

I would check your tax code with HMRC too. It might be the private healthcare affecting it but check anyway.

The 201.21 is salary sacrifice for pension. It says this right at the very bottom of the payslip under the second box ( Employer Contributions: Pension 201.21)

Did you get it sorted @Scarlett555 ? 🤞🏻

I did thanks @ChangesAt30! I don't know how much I will get back yet but HR said there has definitely been a cock up.

They offered to pay me in August. I said I could only wait that long if they pay interest so they are sorting it this week.

Payroll got back to me. Assume their calculations are now right?! Definitely an improvement anyway.

Corrected annual salary: £39883.24
Correct monthly salary: £3323.60
Salary sacrifice pension @ 7% £232.65
Taxable pay: £3090.67

Tax code 1166L gives you annual personal allowance (tax free earnings) of 11665 so monthly £972
Amount you are taxed on therefore is £2118.67 @ 20% = tax of approximately £425

National insurance: £290
Private medical upgrade £90.53

Net pay therefore approximately £2280

Plug the numbers into listentotaxman.com

Did they recalculate your bonus?

Will they back pay the money owed op good job you noticed

I think you need to check every payslip since your salary changed. And check your bonus calculation.

If it’s the same wrong gross pay on each one and you’ve had 7 monthly salary payments you are about 3150 short on salary and your bonus could be wrong too.