New job - salary calculation

eaglesse25

Hi,

Have just started a new job and my salary is being worked out on the 1/260 method rather than the salary divided by 12 method - which is new to me.

Am I worse off or do they work out the same over the year?

Thanks!

getmore4less

Depends why.

Is it for pro-rata or variable working or to cover extra/under days.

52*5=260 so if they then pay for worked days you can come out ahead as there can be more than 260 work days in a year.

More details might help.

eaglesse25

Thanks - being honest not sure what you mean but it’s just a straight up salary and curious as to why they might have chosen this method.

Thanks

[Deleted User]

Knowing your contracted salary would help.

General_Grant

eaglesse25 wrote: »

Hi,

Have just started a new job and my salary is being worked out on the 1/260 method rather than the salary divided by 12 method - which is new to me.

Am I worse off or do they work out the same over the year?

Thanks!

Will it just be for the first (and last) months of your employment that they will use this method or every pay period?

It would be helpful to know all the wording on this point in your contract.

eaglesse25

Hi,

It is for every month - it says “your basic salary of X shall accrue from a day to day rate of 1/260 of your annual salary and be payable monthly in arrears.....”

[Deleted User]

Still need contracted salary amount.

JReacher1

MarkN88 wrote: »

Still need contracted salary amount.

Why?

It’s irrelevant.

JReacher1

The main difference OP is your monthly salary will change depending on days in the month.

Over the year your salary will be the same as if it was paid 1/12

eaglesse25

Thank you I was a little uneasy as I didn’t know how it worked. Still would love to know why they would adopt this approach?

Thanks

getmore4less

JReacher1 wrote: »

Over the year your salary will be the same as if it was paid 1/12

2019 a Monday to Friday worker will work 261 days

they get an extra 1/260th