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Payroll query

52 replies

Catoneverychair · 24/02/2023 08:25

Could anybody advise regarding a payroll matter?
I've started my current public service job on the 28th of a month, on a part-time (3 days a week Mon-Wed, 22.5 hrs per week) contract.
I was expecting a full week's pay for this week as I have worked that week in that month.
Instead, payroll calculated my pay by diving the month by the number of days in that month (30) and timing it by 3, effectively paying me 9.something hours pay for that week.
(Coincidentally, I had the same start date a year ago elsewhere and I had the full week paid at the time, I expected the same.)
Is this legal? I've effectively been paid less than NMW for my hours.

OP posts:
SleepingisanArt · 24/02/2023 08:29

You need to ask them. There may be a cut off date or it's a processing mistake. Only they know.

Cloverforever · 24/02/2023 08:30

Is the payroll period definitely per calendar month? Ie ours cuts off on the 25th and we get paid on the 3rd, to allow time to process it.

VWCVT6 · 24/02/2023 08:33

What month are you talking about?

I'm not with it this morning.

Timeforachangeisitnot · 24/02/2023 08:38

Best to contact the team or your HR person. It may be a cut-off issue, but it seems odd that they would divide by calendar days, rather than working days. They may not have the correct information regarding your contracted hours.

Catoneverychair · 24/02/2023 11:45

VWCVT6 · 24/02/2023 08:33

What month are you talking about?

I'm not with it this morning.

This was for November and they gave me the explanation above for their calculation when I queried it.

OP posts:
Catoneverychair · 24/02/2023 11:45

Not a cut-off issue, we get paid on the 25th but for the whole month. No arrears on subsequent payslips.

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PensionQ22 · 24/02/2023 12:01

It's a fairly common way of calculating pro-rated pay for starters and leavers (and how we do it at my work) but you could make a claim about the NMW issue given you haven't been paid at least NMW for actual hours worked in the reference period 1-30 Nov, which is illegal.

Chances are a junior payroll admin won't know about this and it will need to be escalated.

Hope you can get it sorted.

GCWorkNightmare · 24/02/2023 12:10

Public sector payroll is often set to pay across 7 days a week. So you effectively get paid 3.something hours a day. This is fine when you get a full months pay but not for part month. Under no circs can they pay less than NMW for hours worked so they must do a manual payment for the rest.

VWCVT6 · 24/02/2023 12:22

Catoneverychair · 24/02/2023 11:45

This was for November and they gave me the explanation above for their calculation when I queried it.

I do our payroll and I would have paid you 22.5 hours.

VWCVT6 · 24/02/2023 12:23

Not public sector though.

fuckthisforagameofdarts · 24/02/2023 13:08

You definitely should have been paid for22.5 hours. Don't accept any excuses they have underpaid you!

VWCVT6 · 24/02/2023 13:23

Are you on hourly rate or salary?

Catoneverychair · 24/02/2023 16:15

I'm on salary. And I don't think they should pay under NMW.

I queried it further but not got a reply to my last email other than 'the calculations were correct' by a senior payroll person.
Not sure how to take it further.

OP posts:
VWCVT6 · 24/02/2023 16:21

Catoneverychair · 24/02/2023 16:15

I'm on salary. And I don't think they should pay under NMW.

I queried it further but not got a reply to my last email other than 'the calculations were correct' by a senior payroll person.
Not sure how to take it further.

This is so frustrating for you.

With our full time salaried people who work Monday to Friday we use the 260 (working) day method because the months aren't equal.

You have definitely been underpaid.

VWCVT6 · 24/02/2023 16:27

I would have to check but quickly in my head this is what I think.

260 working days for 5 days a week so for you 156 working days.

So your salary divided by 156 working days.

then

Multiple that by 3 days = your pay for the 28th, 29th & 30th November.

VWCVT6 · 24/02/2023 16:28

Obviously some people will work in hours not days but the outcome should be the same.

VWCVT6 · 24/02/2023 16:53

Salary £30,000 for 22.5 hours a week

22.5 Hours x 52 Weeks = 1170 hours

£30,000 divided by 1170 hours = £25.64 ish

You worked 22.5 hours

22.5 hours x 25.64 = £576.92 (ish)

Catoneverychair · 24/02/2023 16:58

Thank you all, I believe it is illegal and I'm really frustrated. Not sure how to take it further.
It's around £100 I'm trying to fight for.

OP posts:
skilpadde · 24/02/2023 17:01

Contact Acas for advice. You may be able to put in a claim for unlawful deduction of wages.

Americansmoothy · 24/02/2023 17:06

@Catoneverychair This is a well known issue with Civil Service pay. The question will be have you been paid less than NMW. Simple test was your gross pay less than 9 x £9.50 = £85.50.

What you need to do is write to the HR Director (it will be fine) and point out they have only paid you £x for working 22.5 hours when your hourly rate should be (FTE annual salary /1931.4 hours = ? ) and for 22.5 hours should be £

If, you are paid below NMW, then state that you have been paid less than NMW of £9.50 per hour and this is unlawful.

Then say, the method of calculating your pay is discriminatory. Most part time employees are female and part time employees are disproportionately affected by this method of calculating pay. I understand the Cabinet Office pay team are fully aware of this anomaly in the pay methodology when a new member of staff starts in the last week of the month or when an employee leaves in the first week of the month. They are also aware the pay methodology disproportionally impacts employees who work less than 5 days a week including compressed hours and part time employees when calculating a days pay.

I would appreciate you referring this to your payroll manager and possibly the Cabinet Office pay team.

Not sure what grade you are but I would try to talk to both the FDA and PCS reps, say I know I am not a member (unless you are), but this is much wider than me it affects most Civil Servants.

Do not mess about as you want this resolved before the end of the tax year.

Americansmoothy · 24/02/2023 18:09

@Catoneverychair sorry I should have said was your pay less than 22.5 x £9.50 = £213.75

Wittow · 24/02/2023 18:14

Use the grievance procedure to escalate this.

VWCVT6 · 24/02/2023 18:26

I'll stay out of it now as I obviously do it different and others can help you better.

I'm in the private sector.

Good luck in resolving it.

VWCVT6 · 24/02/2023 18:28

I'll stay out of it now as I obviously do it different and others can help you better.

I'm in the private sector.

Good luck in resolving it.

Catoneverychair · 24/02/2023 18:32

Thank you all, @Americansmoothy , I'll use your letter idea, much appreciated.

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