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Advice on change to Daily Rate

adysam
Posts: 5 Forumite
Hi
I currently work abroad and our company is changing our current salary arrangement which is an annual salary paid monthly, they are changing us to a day rate, which means we only get paid when we are working, this is not a problem, but i have concerns of how it has been worked out.
I believe the second equation is correct, but would like your thoughts if possible
I have put below 2 equations of how it has been worked out
Equation 1 - by the company
Equation 2 - by 2 professional finance persons i know
I have not put my actual salary amount in the equations below, you can put any amount into the equations, as i do not wish to disclose my salary
Equation 1
This is how the company has worked it out
New salary calculations based on our annual salary
Scheduled Rotation 9 weeks on : 3 weeks off
9 weeks + 2 x travel days = 65 days x 4 = 260
21 days leave x 4 = 84
21 additional working days in the year = 21
Total =365 days
Current salary: $xxxxx x 12 months = $xxxxxx per annum
65 days x 4 times per year + 21 additional days = 281
$xxxxx (annual salary) divided by 281 = $xxxx per day
Equation 2
The new pay is based on my annual salary (365 days) $XXXXXX this is what I would get per year regardless of how many days I worked in that year, we are on 9 and 3 rotations plus paid travel days in that year which is 86 days per rotation
63 days on travel days (9 weeks) = 63 days
21 days time off + 2 days travel (3 weeks) = 21 days
total rotation = 86 days
The 365 days is then divided by 86 days which equals 4.244 rotations per year
Rotation(time off) and travel 21 + 2 = 23 times by 4.244 equals 97.61 rotation days in that 365 day period
365 days – 97.61 rotation days in that year = 267.388 working days per year
Annual salary $xxxxx divided by the 267.388 working days in that year equals a daily rate of $xxxxx
I currently work abroad and our company is changing our current salary arrangement which is an annual salary paid monthly, they are changing us to a day rate, which means we only get paid when we are working, this is not a problem, but i have concerns of how it has been worked out.
I believe the second equation is correct, but would like your thoughts if possible
I have put below 2 equations of how it has been worked out
Equation 1 - by the company
Equation 2 - by 2 professional finance persons i know
I have not put my actual salary amount in the equations below, you can put any amount into the equations, as i do not wish to disclose my salary
Equation 1
This is how the company has worked it out
New salary calculations based on our annual salary
Scheduled Rotation 9 weeks on : 3 weeks off
9 weeks + 2 x travel days = 65 days x 4 = 260
21 days leave x 4 = 84
21 additional working days in the year = 21
Total =365 days
Current salary: $xxxxx x 12 months = $xxxxxx per annum
65 days x 4 times per year + 21 additional days = 281
$xxxxx (annual salary) divided by 281 = $xxxx per day
Equation 2
The new pay is based on my annual salary (365 days) $XXXXXX this is what I would get per year regardless of how many days I worked in that year, we are on 9 and 3 rotations plus paid travel days in that year which is 86 days per rotation
63 days on travel days (9 weeks) = 63 days
21 days time off + 2 days travel (3 weeks) = 21 days
total rotation = 86 days
The 365 days is then divided by 86 days which equals 4.244 rotations per year
Rotation(time off) and travel 21 + 2 = 23 times by 4.244 equals 97.61 rotation days in that 365 day period
365 days – 97.61 rotation days in that year = 267.388 working days per year
Annual salary $xxxxx divided by the 267.388 working days in that year equals a daily rate of $xxxxx
0
Comments
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I would agree the company calculation is wrong. They have simply taken the leftover 21 days per year as working days.
I worked it out as
1 rotation is 63+2+21=86
365/86=4.244 rotations per year
63 working days per rotation
63x4.244=267.372.0 -
Another way of getting the same result is one rotation is 86 days, of this 63 days are working days. So 63/86 days are working ones.
63/86 x 365 = 267 - to get the bits after the decimal point you would need to average in leap years.But a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll0 -
Thanks for the advice, I am still waiting on the company's decision on this0
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Chances are they are doing this to reduce their wages bill, hence the calculation they have come up with.
What does your Union have to say about this?Don't put it DOWN; put it AWAY"I would like more sisters, that the taking out of one, might not leave such stillness" Emily DickinsonJanice 1964-2016
Thank you Honey Bear0 -
They are both wrong.
a full rotation is 9*7 + 2 + 3*7 = 86days. 65 of them paid
The 365 days is then divided by 86 days which equals 4.244 rotations per year
4.244 * 65 = 275.86 paid days a year(this includes rolled up holiday pay)
if they want to drop travel days as paid then 267.3720
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