Salary calculation

H_e_a_dache

Hi, 

My employer has recently changed our wages from 4 weekly to monthly. 

The calculation they are using to work out our annual wage is: hourly rate x worked hours x 52 weeks. 

Does this sound correct. ?  Should it not be 52.14 weeks as a full year is 52 weeks and a day ? 

I've found lots of discussions on forums like this saying it should be the 52.14 formula but I'm struggling to find any information on an official website. 

Any help with this matter would be much appreciated. 

Thanks in advance,

H. 

Marcon

H_e_a_dache said:

Hi, 

My employer has recently changed our wages from 4 weekly to monthly. 

The calculation they are using to work out our annual wage is: hourly rate x worked hours x 52 weeks. 

Does this sound correct. ?  Should it not be 52.14 weeks as a full year is 52 weeks and a day ? 

I've found lots of discussions on forums like this saying it should be the 52.14 formula but I'm struggling to find any information on an official website. 

Any help with this matter would be much appreciated. 

Thanks in advance,

H. 

If you are currently being paid every 4 weeks, then surely the easiest calculation is 13 x 4 (52 weeks) and then divide that answer by 12 (gives you the monthly figure).

Are you getting the same annual pay that you were getting before?  If not, then time to have a chat with your employer. 

Hoenir

There's 365 days in a year. 

Assuming the normal working week is Mon - Fri.  Deduct 104 days for weekends

Leaving 261days

Assuming 8 hours a day worked

261 * 8 *  normal hourly rate = annual salary

Divide annual salary by 12 to pay monthly

H_e_a_dache

Marcon said:

H_e_a_dache said:

Hi, 

My employer has recently changed our wages from 4 weekly to monthly. 

The calculation they are using to work out our annual wage is: hourly rate x worked hours x 52 weeks. 

Does this sound correct. ?  Should it not be 52.14 weeks as a full year is 52 weeks and a day ? 

I've found lots of discussions on forums like this saying it should be the 52.14 formula but I'm struggling to find any information on an official website. 

Any help with this matter would be much appreciated. 

Thanks in advance,

H. 

If you are currently being paid every 4 weeks, then surely the easiest calculation is 13 x 4 (52 weeks) and then divide that answer by 12 (gives you the monthly figure).

Are you getting the same annual pay that you were getting before?  If not, then time to have a chat with your employer. 

Hi, 

No, we now get 12 equal payments per year ( previously 4 weekly). This is where all the confusion is coming from. I've mentioned it to my employer but they are unsure as to what the answer is... Like I've said, I've read lots of people saying it should be over a 52.14 weeks per year but my employer isn't interested in forum discussions. 

H. 

H_e_a_dache

Hoenir said:

There's 365 days in a year. 

Assuming the normal working week is Mon - Fri.  Deduct 104 days for weekends

Leaving 261days

Assuming 8 hours a day worked

261 * 8 *  normal hourly rate = annual salary

Divide annual salary by 12 to pay monthly

Hi,

Using your formula I am being underpaid each month as I thought. 
Now to find this info on an official website that my employers will take notice of... 

H.

Hoenir

H_e_a_dache said:

Hoenir said:

There's 365 days in a year. 

Assuming the normal working week is Mon - Fri.  Deduct 104 days for weekends

Leaving 261days

Assuming 8 hours a day worked

261 * 8 *  normal hourly rate = annual salary

Divide annual salary by 12 to pay monthly

Hi,

Using your formula I am being underpaid each month as I thought. 
Now to find this info on an official website that my employers will take notice of... 

H.

The forumula I used is one that's accepted in the finance world and with auditors. I'd raise the query directly with your company. My assumption would be that someone hasn't though it through properly. As you would end up being underpaid. 

H_e_a_dache

Hoenir said:

H_e_a_dache said:

Hoenir said:

There's 365 days in a year. 

Assuming the normal working week is Mon - Fri.  Deduct 104 days for weekends

Leaving 261days

Assuming 8 hours a day worked

261 * 8 *  normal hourly rate = annual salary

Divide annual salary by 12 to pay monthly

Hi,

Using your formula I am being underpaid each month as I thought. 
Now to find this info on an official website that my employers will take notice of... 

H.

The forumula I used is one that's accepted in the finance world and with auditors. I'd raise the query directly with your company. My assumption would be that someone hasn't though it through properly. As you would end up being underpaid. 

This is the problem, I've had several discussions with them but they're not budging...

H. 

Dazed_and_C0nfused

H_e_a_dache said:

Hoenir said:

H_e_a_dache said:

Hoenir said:

There's 365 days in a year. 

Assuming the normal working week is Mon - Fri.  Deduct 104 days for weekends

Leaving 261days

Assuming 8 hours a day worked

261 * 8 *  normal hourly rate = annual salary

Divide annual salary by 12 to pay monthly

Hi,

Using your formula I am being underpaid each month as I thought. 
Now to find this info on an official website that my employers will take notice of... 

H.

The forumula I used is one that's accepted in the finance world and with auditors. I'd raise the query directly with your company. My assumption would be that someone hasn't though it through properly. As you would end up being underpaid. 

This is the problem, I've had several discussions with them but they're not budging...

H. 

I'm not convinced you will find what you're after.

NMW is highly likely to be the legislation which ultimately counts.

Even though you feel it's less than you should be getting are you being paid NMW?

H_e_a_dache

Yes, I'm above the NMW...

H.

Hoenir

H_e_a_dache said:

Hoenir said:

H_e_a_dache said:

Hoenir said:

There's 365 days in a year. 

Assuming the normal working week is Mon - Fri.  Deduct 104 days for weekends

Leaving 261days

Assuming 8 hours a day worked

261 * 8 *  normal hourly rate = annual salary

Divide annual salary by 12 to pay monthly

Hi,

Using your formula I am being underpaid each month as I thought. 
Now to find this info on an official website that my employers will take notice of... 

H.

The forumula I used is one that's accepted in the finance world and with auditors. I'd raise the query directly with your company. My assumption would be that someone hasn't though it through properly. As you would end up being underpaid. 

This is the problem, I've had several discussions with them but they're not budging...

H. 

Consider consulting ACAS on the matter. Contractual changes have to be agreed by both parties not unilaterally imposed. Be open with your employer that it's your intention. Might spark a more positive discussion. 

elmer

It may just be tough, Im paid monthly and of course this year I worked 29 February for free, as my monthly pay is not increased to take into account the extra day in a leap year