Left mid month calculating final pay

houseboatdream

Hi

I hope that you helpful folk will be able to help here. Can you advise how pro-rata last salary is/ should be calculated when leaving job half-way through the month.

I left my job today :j however I am not sure that the final salary payment has been calculated correctly. It was only a small firm and the wages person has only been in the job a month, she was told how to work out the figures by the main director but I can't get my head round their figures.

It was a monthly paid job, working one month in arrears. £39k per annum; usually get monthly gross pay of £3250. I was last paid on 31 March so was expecting to be paid pro-rata for the days I have worked from 1 April to today, which I calculate to be 11 days. Also they have paid me 5 days for holiday not taken.

How should the amount for the 11 days be calculated? Is there an "official" formula?

Thanks in anticipation.

HBD

KiKi

3250/21 = 154.76 (per day)

154.76 x 16 = £2476.19

That's what I'd expect you to get, according to the law of common sense. I'm not aware of any official formula, but then I've never worked in payroll.

However, make sure it is one month in arrears exactly on your payslip. My last company paid us on Wednesdays, but the date on the slip was the Sunday, so we were effectively paid 25 days in arrears and 5 days in advance. And 13 times a year, just to complicate things.

ETA - Have they given you a figure of £2383? Or £2400?

KiKi

hcb42

13 times a year is 4 weekly pay, which is slightly more straightforward to calculate.

I would get £2400 based on £39000/260 (days per year worked) x 16, assuming the five days holiday is correct.

But does depend on how much is in advance and arrears. I left my employment recently and got a week more than I expected, nice bonus

houseboatdream

Hi Kiki

Thanks for the quick reply. That is exactly what I had worked out.....however the note that came with my payslip said:
"Just to let you know how this months wages were calculated , as per ****'s instructions:

20days x £39k = £2136.98
365

holiday 5 days £534.25
salary £1602.73 "

On the payslip the gross figures are salary £1602.73 and holiday pay £534.25

I can't work out how they have arrived at these figures. Overall gross I got £2136.98, so about £339.10 gross short???

Do you guys agree? I really didn't need this as the ex-boss was the most unpleasant person I have ever worked for.

KiKi

hcb42 wrote: »

13 times a year is 4 weekly pay, which is slightly more straightforward to calculate.

Oh I know - MUCH easier to calculate. But slightly more difficult to budget when you pay bills on a monthly basis and pay day gets earlier and earlier in the month!

KiKi

KiKi

houseboatdream wrote: »

20days x £39k = £2136.98
365

holiday 5 days £534.25
salary £1602.73 "

Okay, I see what they've done.

They're going by day, INCLUDING weekends. But they've ignored the weekend in between you leaving (15th) and the five days holiday (which would take you to 22nd). So really it should be 22 divided by 365, multiplied by 39K.
Which would give you £2350.68. Because otherwise the 'day rate' for the holiday is well below what it should be.


At the end of the day if that's how they calculate it I'm not sure there's anything you can do. However, I would contest the holiday part. If they're going to include weekends, they need to add the extra two days. OR, they should calculate the whole thing based on work days per year and ignore weekends completely.

ETA - Having thought about it, this is fairer than the way I first calculated it (as did you). In April, there are only 21 working days, whereas in August there are 23, for example. So if they did it as I did firstly, then you might be penalised / better off depending upon which month you quit. So I think their calculation is fair.

However, as I said, they should either include all weekends, or not include them at all, not use both in one calculation.

HTH
KiKi

houseboatdream

Hi Kiki

Thanks again. I just don't understand why they have included weekends. This was a 35 hour a week 9 -5 monday to friday job. I am sure they have calculated it wrongly.

I'm not questioning your opinion but do you think it would be worth my calling up ACAS for a view?

thanks, HBD

KiKi

houseboatdream wrote: »

Hi Kiki

Thanks again. I just don't understand why they have included weekends. This was a 35 hour a week 9 -5 monday to friday job. I am sure they have calculated it wrongly.

I'm not questioning your opinion but do you think it would be worth my calling up ACAS for a view?

thanks, HBD

I've just added an ETA which might help in the previous post.

Please DO question my opinion, I'm not a payroll expert at all! Looking at it, I think it's fair that they're paying you according to how many days total you had there in April, but it should go up to 22nd to account for your leave, not up to 20th.

Either that, or they should only include working days per year (260), to take you up to to £2400. But my first calculation is definitely wrong as it would be unfair to penalise someone for more working days in August.

Eg, your day rate for April is 3250/21 = 154.76. In August it would be 3250/23 = £141.30. So if you'd quit in August you'd be much worse off. That's why it seems unfair to you, but I can see why they don't work it out like that, and I actually agree it would be wrong to.

By all means call ACAS - they undoubtedly know more than I do!

KiKi

Any

Hi, payroll person here.
They cannot legally divide your wage by 365 days if you work Mon-Fri!! It doesn't even make sense.
Generally there is 52 weeks in a year. That is the number payroll works with.
So £39000/52 weeks on a year/5 days a week =£150 daily rate.
Divide by 35 to get hourly pay if you need that (some companies work short Fridays for example so leaving on Wedn would mean you worked more then 3/5 of weekly hours...)

Any

Kiki,
It doesn't make any sense to calculate pay on the number of days in each month..
Either your hourly pay would change every month or your gross pay would change every month.
Which wouldn't be good for anyone.

OP-if your emloyer does give you brush off I would defo call ACAS. What they've done is not right at all...you don't work 365 days a year so why would your pay be based on 365 days a year??
Either they haven't got a clue or they are trying to play you and save some money.

KiKi

Any wrote: »

Kiki,
It doesn't make any sense to calculate pay on the number of days in each month..
Either your hourly pay would change every month or your gross pay would change every month.
Which wouldn't be good for anyone.

That's exactly the conclusion I came to in my last two posts where I said I was wrong in my first post.

KiKi