Help with term time pay?

[familyissues12345]

Hi

I wondered if anyone could help me to understand my wages please? DH and I have been trying to work it out, and think I've always been underpaid...

Wages have gone up from this month to acknowledge the increase in minimum wage.

Hours I work - 16 hours a week
weeks I work - 39
Holiday - 5.6 weeks

Up until this month, I've been getting £458 a month, every month (if no overtime) This month I've received £501.

Last year I was on £9ph (not including holiday)

This year we've been given an amount that includes holiday - £10.68.

We are not convinced the amount I've been paid this month is correct, or actually any month...

I only get a basic payslip, doesn't give hourly rate - just says basic wage is... overtime etc... No P60 either yet. Very small family run business.

I am planning to approach if there's an issue, but don't want to say anything in case I'm wrong.

Thanks in advance!

Minimium wage has gone up.
2021 it was 8.91 (assuming you are over 23).
2022 its 9.50. So you've had a pay rise.

2021, £9/hr x 16 hr/week x 44.6 weeks per year = £6422.40. £535.20 a month if no deductions.

IF, no holiday pay, it would be 9x16x39 = 5616. Which is £468 a month.

New salary, if on min wage and not wrapped up with holiday should be
9.5x16x44.6 = 6779.2. £564.93 a month.

Holiday pay wrapped in is
10.68x16x39= 6664.32. £ 555.36 a month.

So, I'd say you've been under paid on the previous system, but the new one looks ok.

I'm an HR/Payroll Manager and term time salary should be calculated as follows (based upon statutory entitlement):-

Hourly rate x no. Hours per week

Multiply total by (no. Actual working weeks plus 5.6 week's holiday)

Divide by 12 for monthly pay.

Unless there's a big piece of the puzzle missing somewhere, I agree that your pay is incorrect for last year.

Without knowing the pay period, I can't comment upon your uplift, but it does seem low.

@Jurrasicperks as a school chief finance officer I endorse your reply 😀

Surely the 5.6 weeks holiday is based on someone working 52 weeks a year? If you’re working 39 it should be a bit less. Otherwise what about someone contracted to - say - 12 weeks a year, they’d be paid leave for almost half their working time.

Do you have your contract you can use as a template to base your calculations on?

I've found my contract and it says I get 5.6 weeks holiday, pro rated with a full time person classed as 30 hours a week

TTO workers still get 5.6 weeks.

I guess it is up to employers not to employ someone for 10 weeks!

@familyissues I assumed the same as you before I started working in education last year

TTO workers get paid across 12 months so when you’re on summer holidays you’ll still get a wage in August. Rather than not getting paid for the 12 weeks you don’t work.

I don’t get holiday entitlement because I do TTO 40 weeks in total. Not others in HR work all year round so get holiday entitlement

your wage slip will state No. hours and it’ll be less than you actually work

if you worked 29.5 hours a week you wage slip would say something like hours 22.

But after a year youll see on your p60 that did get paid £10000 for the year

Hi

You've definitely been paid wrong. This may be quite long so bear with!

I also work term time only in a nursery although more hours however the way the pay is worked out is still the same.

Term time only employees who are paid the same amount over 12 months have holiday pay included as part of the salary so it wouldn't be documented separately on your wage slip.

As there is a question around wether holiday pay is included in your rates or not and assuming you are 23 or over I am going to do the calculations using the nmw rates of £8.91 for last year

(These amounts are spot on give or take the pence depending on how many decimal point places they use and wether they round up or not)

Normal pay
16 hours a week x £8.91 an hour = £142.56
£142.56 x 39 weeks of the year = £5559.84

(To work out holiday pay you need to know the average number of hours worked per week when split over 52 weeks not 39)

16 hours x 39 weeks = 624 hours
624 ÷ 46.4 weeks (52 weeks - 5.6 hol)
Average hours a week = 13.44

Holiday pay
13.44 x 5.6 weeks = 75.26 hours
75.26 hours x £8.91 an hour = £670.56

Overall pay
£5559.84 (normal) + £670.56 (holiday) = £6230.40
£6230.40 ÷ 12 months = £519.20

Same calculations again using this years nmw of £9.50

Overall pay
£5928 + £714.97 = £6642.97
£6642.97 ÷ 12 months = £553.58

This is before any deductions but amount of earnings mean no tax and ni are taken off so the only deduction you would have would be a pension but as you say you don't pay that then yes as stated there are zero deductions to be made.

So basically whichever way round you look at it yes you've been underpaid! Even more so if your rates are actually more than nwm.

You should have been receiving at least £519.20 per month last year and you should currently be receiving at least £553.58 per month this year

Hope that helps and hopefully you can get it sorted 👍