Reducing my pay/hours by 20 %-Advice

teambathmat

Hi there,

I currently work 16 hours per week and the company has announced 'due to the current economic climate blah, blah'..........we are to suffer a 20% pay cut and reduced working hours.

Now for the full timers that means going down to a 4 day week.

For me, I guess it means my hours reduced by 20% (16 hours - 20% = 3 1/2 hours ish)....

What will be affected by me working less less than 16 hours?.........Am i better off saying to my manager that I will still work 16 hours per work for 20% less?

What would you do?

Additional info about my circumstances- hubby works full time, we have 1 child aged 18 months and a baby on the way due in july next year

Many thanks for reading

tclci

if you drop below 16hrs, then your tax credits will be affected

also, the drop in income will affect your SMP

teambathmat

thanks for your reply, so the short answer is to still work 16 hours for 20% less pay.

Thanks

flea72

so will your employer let you keep your hours, but just take the 20% paycut paycut or will you work 16hrs for 12.5hrs pay, less your 20%. if so, then your employer is getting a very good deal, whilst you loose out

one thing to consider though, is if working 16hrs for 12.5hrs pay (less 20%), will mean you earn less than min wage

F

teambathmat

Hi flea,

Yes, my company will be getting a good deal as they will be paying me less but I will still be working my 16 hours.

In answer to your questions, i should still be earing approx £100 per week with the pay cut.

teambathmat

tclci wrote: »

if you drop below 16hrs, then your tax credits will be affected

also, the drop in income will affect your SMP

will the drop in INCOME or drop in HOURS affect my SMP?

flea72

teambathmat wrote: »

will the drop in INCOME or drop in HOURS affect my SMP?

income - as obviously the 6wks at 90% will be less, and if you earn under £100/wk, then you get SMP at a reduced rate too

sorry if you earn too little, you dont get SMP, you get MA, which is reduced to 90% of your pay

teambathmat

what do you suggst I do flea?

teambathmat

anyone else?

teambathmat

just bumping this up..Anyone been in a similar situation or can offer any advice?

Roobarb73

I would suggest working the 16 hrs with the pay cut, provided that it is still going to meet the national minimum wage/SMP lower earnings limit