Minimum wage rises

50Twuncle

Whooppee Doo - the government is raising the minimum pay for a few hundered thousand people.

What about those of us on a "bit more" than minimum pay ?

I earn around £8 per hour - working part time - what the government appears to be doing is just increasing the numbers on "minimum pay" - just making the levels slightly higher - I will shortly be a member of the minimum pay club......
Also - my actual take home pay is only about £7 per hour due to the fact that I only work school term time - but am paid 52 weeks - how does that work when looking at minimum pay ?

tomtontom

Always handy to do a search before posting.

https://forums.moneysavingexpert.com/discussion/5282861

The minimum wage is paid according to hours worked - the fact that your payments are spread over a longer period is irrelevant.

TBagpuss

If you are slightly above the minimum wage you won't automatically be entitled to any increase unless the new NMW is higher than your actual pay at the time the change takes effect.

maninthestreet

50Twuncle wrote: »

Whooppee Doo - the government is raising the minimum pay for a few hundered thousand people.

What about those of us on a "bit more" than minimum pay ?

I earn around £8 per hour - working part time - what the government appears to be doing is just increasing the numbers on "minimum pay" - just making the levels slightly higher - I will shortly be a member of the minimum pay club......
Also - my actual take home pay is only about £7 per hour due to the fact that I only work school term time - but am paid 52 weeks - how does that work when looking at minimum pay ?

An increase from £7.20 to £9 an hour in the next five years is not just a 'slight increase'.

HappyMJ

If you work in a school then the MW applies to the hours that you work plus the statutory holidays you get in a year which is 28 days. A school term time only worker could be paid £6.50 an hour for 35 hours a week and work for 40 weeks then gets 28 days holidays..the rest can be unpaid but they can average your pay over the period so it looks like you are paid for the extra holidays so you need to annualize the hours then divide by 52 to get your weekly salary. It would work out at (40 weeks * 5 days + 28 days annual holidays) = 228 days * (35 hours in week / 5 days in week) * £6.50 hourly rate / 52 weeks = £199.50 a week...which if you were to divide by 35 would look like you're only getting £5.70/hour...but you're really getting £6.50/hour with 12 weeks annual holidays 5.6 weeks paid and 6.4 weeks unpaid.

Another way to figure it out is you are paid MW for working and being credited with annual leave for 260 days in a year (5 days a week for 52 weeks) at £6.50 an hour. If you buy an extra 6.4 weeks leave (to make 12 weeks in total) i.e an extra 32 working days on top of the 28 that you are already entitled to then the employer can sell you annual leave at a cost of 1/260 of your hourly rate per extra day you want. An extra 32 days would reduce your hourly rate by 32/260 or 80p/hour @ £6.50/hour to £5.70/hour.

Confusing? I think so....but you are still paid £6.50 for the hours you work. If you're getting £8/hour on your payslip then you're doing OK.

50Twuncle

maninthestreet wrote: »

An increase from £7.20 to £9 an hour in the next five years is not just a 'slight increase'.

The £9,per hour quoted is not a legallly binding minimum wage - it is a recommendation only !!!

[Deleted User]

Yes I was told "it's only a guide"! even in an interview on Wednesday so knew not to get excited


Over the head. Though I hope I've a job that pays holiday pay, it's all I really do care about now