Salary underpay

Maggi22

I earn £17000 per year and work 37.5 hours per week. What is my hourly rate and am i below the minimum wage. Im 50 years old. Not had pay increase in over ten years.

Penguin_

£17000/52 = £336.54
£336.54/37.5 = £8.97

Minimum wage for the tax year 2021/22 for over 23s is £8.91.

Minimum wages for the tax year 2022/23 for over 23s will be £9.50 so your salary should go to  £18525.

Maggi22

But have i been underpaid since 2019?

Exodi

Maggi22 said:

But have i been underpaid since 2019?

Depends what your pay was in 2019?

As Penguin_ has shown, you've haven't been underpaid for this tax year.

Penguin_

If as you suggest you haven't had a pay rise in 10 years & you have constantly been on £17500 then no you won't have been underpaid as the NMW goes up not down, so you will have always had an hourly rate above the NMW.

You need to ensure your salary is increased to at least £18525 from April.

Maggi22

yes ive been on the same monthly payment for over 10 years with no rise, even the minimum wage hasnt increased my pay and yet that has risen, but ive stayed on the same figure each month.

Exodi

Penguin_ said:

If as you suggest you haven't had a pay rise in 10 years & you have constantly been on £17500 then no you won't have been underpaid as the NMW goes up not down, so you will have always had an hourly rate above the NMW.

You need to ensure your salary is increased to at least £18525 from April.

And if it really is the case you have been paid £17,500 for the last 10 years (where NMW would have earned you £12,070.50, putting you 45% above NMW at the time), you have had a really bad deal. To be paid at the same relative rate to then, you should be on about £26,858 now.

Perhaps time to look elsewhere?

Penguin_

Ok so in 2011 the NMW was £6.08, which means that you were paid £2.89 per hour above the NMW, over time as the NMW has increased the £2.89 has reduced to what you have now which is 6p. So although the NMW has increased, there is no requirement for your salary to do so as you have always been above the NMW.

I would query though why you don't get a pay increase to cover inflation a the very least.

Maggi22

Salary was the same in 2019. Same as today. No change

comeandgo

Why would you stay with a company that has not given you a pay rise in 10 years?  Are they reimbursing you in non financial ways?

Exodi

Maggi22 said:

Salary was the same in 2019. Same as today. No change

You said in your first post that you "Not had pay increase in over ten years"? Not even in line with inflation. It seems crazy that you would go from a well paid job (at the time) to national minimum wage over 10 years without an increase (or challenging it).