Help re a salary calculation

N3il

Not sure this is the right place but perhaps someone can move if not.

I was earning around 20900 and my monthly basic pay was 1741.66.

I had a pay increase of 900 with effect from mid october, making my salary 21800 and my basic pay 1816.66.

I realised that i wouldn't be paid 1816.66 basic for October since the first part would be on lower salary and second on the higher, however my basic was calculated by the finance dept as 1740.00 which is less than the previous month.

I queried this and was told that they pro-rata it as follows:

260 working days a year so

6 days * (20900/260) = 482.30
15 days * (21800/260) = 1257.69 = total 1740

I tried to argue that this makes no sense mathematically since 260 days / 21 days is 12.38, so this doesnt represent a month, but honestly its like trying to argue with a rock. I was told its the way its done and sometimes it works out better for employees...

I calculated my basic pay should be around 1795, and honestly £55 to me right now is quite a lot of money so I really want to do something about it, does anyone have any information or advice please?

Thanks

maisie_cat

There are 260 working days a year for an employee working 5 days a week. The problem is that there are 21 working days in October because there are 5 weekends. There is always difficulty with any mid month change, starter & leavers are the same.
You worked 21 days in October and that's what you were paid for, your 1741.66 is based on each month having the same working days as that's the way annual salaries are treated but the number of working days in a month varies.
November has 22 working days despite being a shorter month because it has 4 weekends so the it really is swings & roundabouts. When you started the job the same thing will have happened unless you started on 1st of the month. If you really want to argue you could use the following:
Normal month 1741.66 +(15/260*900=51.92)=1793.58 You may want some goodwill from payroll/finance/HR in the future and you need to decide if it's worth it.

marliepanda

Edit as MaisieCats explanation makes way more sense than mine!

N3il

Thanks Maisie Cat, that makes sense. Not sure what to do now, who knows how much the good will of the finance dept is worth