Job change/pay rise

Bustrbroke02

I am applying for a new job which will give me an extra £10k income. I understand that with bonus/overtime etc the IVA company will take 50% but what is the situation if it is a permanent salary increase- do they just take half or all of it.

My annual review is due April 2012

many thanks

Tinks74

Your next annual I&E review would highlight the change anyway, with a change such as a £10k pay rise I would expect an increase in contributions, not necessarily 50% of the 'extra' you would have to pay from bonuses and overtime. Any reasonable Supervisor would look at the new I&E, the new job may involve increases in expenditure i.e. extra fuel / travel costs etc. That should all be taken into consideration and a new contribution amount calculated.

I also think that is it highly likely that there will be a clause in the proposals that states you must inform the Supervisor/IP about any changes in employment and the like, if it does, not doing so may be considered a breach of the agreement.

I would suggest that you are up front about it if you get the job, you will not be able to hide it and you may find yourself in more trouble if, once your Supervisor finds out about it, they backdate an increase in your contributions and you have already spent the money.

Bustrbroke02

thanks for reply- I was not intending to hide this I just need to undertand how it works. The new job involves more hours, working away from home and much more pressure. I am trying to work out before applying if it is really in my best interests to go for it. If I have all my additional money taken off me then it isn't really worth the stress.

FoggyBrain_2

Best thing is to run it by your IP. Don't forget to point out that there will be extra expenses too ... so all of the increase wouldn't be available anyway.

Max_Maxwell

Your court papers should be very clear on the impact of increases to income so it's always best to check those ahead of discussing with your IP so you have an idea of the possible outcomes.

As Tinks and FoggyBrain have already pointed out, you are permitted to deduct sensible increased expenditure although you may have to prove any significant increases. I'm afraid additional pressure through your new role attracts no value!

I believe salary increases are treated differently to bonuses so it's important to get clear guidance on this. It may vary from IP to IP but normally with bonuses you get to keep the first 10%, then the remainder is split 50/50. For salay increasese it's a straight 50/50 of the surplus after increased expenditure.

I'm going through a similar process and in dialogue with my IP about a fair and honest increase to my monthly contribution.

balmk

Hello,

From experience, when I changed jobs and had a substantial salary increase, I notified my IP AND put in a revised I&E form.

This meant that I could offer an increased contribution, but could also ensure that I wasn't then out of pocket as a result of the new job.