Final Pay

Mildmanneredman

Tizerbelle> That makes sense, got confusing because 15 days pay would 75% of full pay plus that 30 days thing could never be correct to get a day rate when you don't work 30 days. Probably just a mistake yes. In future I will advise to write down exactly how pay periods work as it's not specified in the contract or the payslips I only know they have a cuttoff..

Thanks a lot all.

Savvy_Sue

Mildmanneredman said:

Savvy_Sue said:

I'd use their method: monthly salary / days in month / days to leaving date.

I don't like it, but it's applied consistently. 

Hi Sue,

Unless I'm not getting something, that method has never been used before. If 15 days pay = half of the months pay, then you would need 30 days worked to get a full months pay, but you don't work 30 days do you, so you could never get paid a full months pay if you did it that way..?

Thanks

tizerbelle also notes it as one of the two ways it's done. It gives different results depending on whether there are 28, 29, 30 or 31 days in the month which is why I don't like it. But it's perfectly acceptable in payroll terms.

tizerbelle

Savvy_Sue said:

tizerbelle also notes it as one of the two ways it's done. It gives different results depending on whether there are 28, 29, 30 or 31 days in the month which is why I don't like it. But it's perfectly acceptable in payroll terms.

There is another way... monthly salary / working days in month * days worked in month - but again this changes the value of a day depending on how many working days there are in the month (between 20 and 23). 

It is one of the reasons why many employers utilise the salary/260 to be the value of a day .  There was a court of appeal case in 2015 that confirmed the 1/260 was the most appropriate calculation (in a specific case) but since then you are likely to see salaried contract templates being updated to include terminology that specifies that a days pay will be 1/260 of salary