4 weekly pay - how is it calculated?

jem16

StuC75 wrote: »

One question for the OP, when you were paid Monthly - Did you ever dispute that you were paid too much in February? because that month had less working days so should not have been 1/12th every month? or that didnt vary for 30/31 days in the month?.

When I was paid monthly I knew that my annual salary was simply divided by 12 each month - none of this daily rate nonsense. We were paid on the Thursday before the last Friday so most times it was 4 weeks apart and sometimes it would be 5 weeks.

I really didn't bother thinking about the number of days in a month as sometimes it was more and sometimes less. What I was bothered about was that each month I received the same amount and that my P60 agreed with my annual salary so easy to check if there was anything wrong.

Being paid monthly makes budgeting easy to work as most, if not all, direct debits tend to be taken monthly. For some this change to 4 weekly pay has caused a lot of problems.

Technically the council are correct in that I do receive my annual salary over the course of a calendar year although I may dispute their figures slightly.

Morally I don't think they are correct and their cost-cutting exercise has angered a lot of their previously paid monthly employees. if they had to choose one pay run, why not monthly as it fits in with most budgets and how bills are paid.

Anyway thank you all for your help. I do understand what is happening even if I don't like it. I shall leave the union to fight our corner. As far as I'm aware our council is the only one to do this.

jimmo

Just one other thought, have you considered asking on the employment forum?

I think there are some experts there who may be able to advise you whether what your employer has done is just morally reprehensible or has broken Employment Law.

In my personal experience unions are red hot on some matters and rubbish in others and where they are rubbish you really have to push hard to hope to achieve anything.

xylophone

fait-a-complit

http://www.phrases.org.uk/meanings/fait-accompli.html

chrisbur

jem16 wrote: »

I shall tell my colleagues they can look forward to a windfall in 22.5 years.

There will not be a windfall in 22.5 years I am afraid, the 14 payday year will only correct the alignment of your payments with the tax year. Apart from the small underpayment that I feel they have done due to the way they worked it out they are I believe paying you the same as when you were paid monthly. The problem lies in your pay year no longer exactly fitting your tax year, but your average earnings are almost exactly the same or would be if they had done the maths correctly.
In order to compare earnings with P60s you would have to look at both over a longer period.

From what you have said your yearly salary is £34199 so if we assumed that you received that for the next 45 years you would have 45 P60s which added up to £1538955.
Now take the £34199 and divide by 260.8875 and multiply by 20 to get a four weekly figure and you have £2621.74.
During the 45 years on average you would now get 43 P60s with 13 payments on and 2 P60s with 14 payments on.
So 43*13*2621.74 = 1465552.66
2*14*2621.74 = 73408.72
1465552.66 + 73408.72 = 1538961.38
A difference of £6.38 or about 1 penny a month.

jem16

jimmo wrote: »

Just one other thought, have you considered asking on the employment forum?

I think there are some experts there who may be able to advise you whether what your employer has done is just morally reprehensible or has broken Employment Law.

I will ask but I think the fact that it's been running now for 2 years will mean that we have accepted the changes to our contract.

jem16

chrisbur wrote: »

There will not be a windfall in 22.5 years I am afraid, the 14 payday year will only correct the alignment of your payments with the tax year.

Sorry - didn't make myself clear. I knew it wouldn't but to some it would seem that they had had an extra pay as we've always been used to thinking from 1st April to end of March as that was our working year financially.

From what you have said your yearly salary is £34199

It's £34,200 but I get your meaning.