Salary and day rate

814man

I'm currently on a full time salary of £68525.  I want to drop one day a week with employers agreement but they are suggesting reduction in salary to £48000.  This does not sound right, is there a calculation here I can do?

Voyager2002

Assuming you currently work five days per week, your request is for a 20 per cent reduction in the time you give them. I would expect that your salary would also fall by 20 per cent so that the payment per hour remains the same. 

As you say, there is a mistake here: the new salary they suggest is rather too high.

Tucosalamanca

Assuming a five day week.

£68,525 / 5 = £13,705 

£13,705 x 4 = £54,820

£54,820 would be equivalent for a four day week...

Voyager2002 said:

Assuming you currently work five days per week, your request is for a 20 per cent reduction in the time you give them. I would expect that your salary would also fall by 20 per cent so that the payment per hour remains the same. 

As you say, there is a mistake here: the new salary they suggest is rather too high.

Looking at it this way, £68,525 x 0.8 = £54,820. Salary they suggest is too low?

DullGreyGuy

Voyager2002 said:

Assuming you currently work five days per week, your request is for a 20 per cent reduction in the time you give them. I would expect that your salary would also fall by 20 per cent so that the payment per hour remains the same. 

As you say, there is a mistake here: the new salary they suggest is rather too high.

Think you want to recheck your maths @voyager2002 as you are saying they should be paying 80% of the current salary whereas the current offer is 70% of the current rate. 

To the OP - do you currently work 5 days a week? Do you have any fixed cost benefits like a company car or private medical?

In principle the proposed reduction looks excessive however they may argue that the nature of your job isn't suited to reduced hours and they'll have to pay overtime rates etc to others to cover your shortfall hence are proposing a solution that is cost neutral to them given its you that want to move the goal posts.

lincroft1710

814man said:

I'm currently on a full time salary of £68525.  I want to drop one day a week with employers agreement but they are suggesting reduction in salary to £48000.  This does not sound right, is there a calculation here I can do?

It may not sound right, but the alternative to your employer making a rather obvious mistake in their calculations is that they are not prepared to pay you at the same rate for a 4 day week.

814man

Thank you for the comments, having gone back and discussed it further with employer we have agreed on the £54800 figure as suggested above.

Grumpy_chap

Glad this has been sorted for the OP.
One thing that might still need resolving is annual leave and Bank Holidays.
Assume the normal 5-days were Monday - Friday with 4 or 5 weeks annual leave plus Bank Holidays
If the new 4-days are Monday - Thursday with the same 4 or 4 weeks annual leave plus Bank Holidays, the dominance of Bank Holidays falling on Monday would be disproportionate.  I was going to suggest this discrepancy as a reason why the employer may have suggested less than 80%.  That is no longer a concern, but the treatment of Bank Holidays might well be something better fixed sooner rather than later.

(The same would apply in reverse if the new 4-days were Tuesday - Friday as the OP would then lose out proportionately.)

FIREDreamer

Grumpy_chap said:

Glad this has been sorted for the OP.
One thing that might still need resolving is annual leave and Bank Holidays.
Assume the normal 5-days were Monday - Friday with 4 or 5 weeks annual leave plus Bank Holidays
If the new 4-days are Monday - Thursday with the same 4 or 4 weeks annual leave plus Bank Holidays, the dominance of Bank Holidays falling on Monday would be disproportionate.  I was going to suggest this discrepancy as a reason why the employer may have suggested less than 80%.  That is no longer a concern, but the treatment of Bank Holidays might well be something better fixed sooner rather than later.

(The same would apply in reverse if the new 4-days were Tuesday - Friday as the OP would then lose out proportionately.)

The way our company works it out is

(Number of full time days holiday PLUS Number of Bank Holidays in year) * Actual Hours Worked in week / Number of full time hours

This is the annual holiday entitlement in days, converted to hours so if it is not a whole number of days you can take a partial day’s holiday if needed.

If a bank holiday falls on a working day, it counts as, and uses up, a day’s holiday. Otherwise itbdoes not come from your entitlementbas you don’t work that day.

FIREmenow

At my employer, bank holidays entitlement is pro rata, so if you work 0.8 FTE then you get 0.8 of every bank holiday. If one falls on your working day and you get a whole day off then you owe 0.2 back.  If it falls on your day off, they owe you 0.8. All kept track of with your manager as the HR system can't cope with the idea that anyone could work less than full time.