How to work out reduction of wages

Kellyh4

Hi,

im wondering if anyone can help me calculate what my salary would go down to should I reduce my working hours.

i am currently on maternity leave and ideally want to reduce my working week by 1 day.

I usually work Monday to Friday 8:45 to 5pm and would be looking just to work Monday to Thursday 8:45 to 5pm.
my current salary is £22,500.

Thanks 

Neil_Jones

Not enough information.  How long is lunch?  How much do you earn an hour?  What deductions come out of your pay - pension?  student loans?  Tax/NI?  Something else?

Savvy_Sue

Well the short answer is to divide £22,500 by 5, then multiply that by 4 - but that only gives your gross pay. 

To get your net pay, you need to answer Neil's questions. But you could get some idea from using a site such as listentotaxman.com

getmore4less

As a very rough guide(as it does not include all deductions) is 68% of the gross reduction  20% tax 12% NI. 
20% drop in hours 13.6% drop in net pay.

UnderOffer

Try the salary calculator, you can put in hours, full time equivalent and even pension contributions. 

https://www.thesalarycalculator.co.uk/prorata.php

Kellyh4

Neil_Jones said:

Not enough information.  How long is lunch?  How much do you earn an hour?  What deductions come out of your pay - pension?  student loans?  Tax/NI?  Something else?

Hi Neil,

apologies first time using a forum like this.

1 hour unpaid lunch.

i don’t earn an hourly wage as succ it’s just a set salary I don’t get paid any more if I was to do over time ect.

deductions - 5% pension and then just standard tax and national insurance.

thanks for your kind help 

Xbigman

Ballpark figures.
Your take home pay will drop by roughly 3000 a year or 250 a month. If you want more accurate figures you should use an online calculator but 250 is a reasonable figure to go by. 

You should realise there is a hit to your pension long term. 20% less paid in for an extended period could be significant.

You will also lose holidays. The holidays will probably pro rata down but bank holidays usually leave an odd fraction of a day so check your employers policy on this so you know how it works. 

I worked 4 days a week for years and now work 3 days a week. I've never regretted it but it does cost money to do it. 


Darren

Kellyh4

Xbigman said:

Ballpark figures.
Your take home pay will drop by roughly 3000 a year or 250 a month. If you want more accurate figures you should use an online calculator but 250 is a reasonable figure to go by. 

You should realise there is a hit to your pension long term. 20% less paid in for an extended period could be significant.

You will also lose holidays. The holidays will probably pro rata down but bank holidays usually leave an odd fraction of a day so check your employers policy on this so you know how it works. 

I worked 4 days a week for years and now work 3 days a week. I've never regretted it but it does cost money to do it. 


Darren

Thanks for your help Darren, trying to figure out if it’s more cost effective to work less than paying nursery fees! 

Savvy_Sue

Bear in mind that if you do reduce your hours, you won't have an automatic right to increase them in the future, should you want to. Also remember that nursery fees are for a season, and childcare costs should reduce once your babies go to school (although school holiday costs won't be cheap).