Daughter's first full time job pay

Marcon

WinMeSomeStuff said:

She picks up just over £965 a month. She works full time 36hrs and 25mins a week with 45min unpaid break each day. She so far has no tax or NI coming out of this wage since she is not hitting the threshold. Altough the Salary on her contract is £16965.

I myself just cannot get my head round if she is being underpaid or not. It mentions on the contract,  "your first year of employment your salary will be proportionate to the amount of time left in the year". 

I thought this may be why the pay seems low? Although if I do the simple calculation £16965 ÷ 12, it comes out way more than £965.

I have told her to go back and discuss it a number of times but she comes back them explaining how it is correct stating the proportionate amount of time left in year.

Somebody at the employer's end of things is hopelessly out of their depth! Maybe your daughter could raise it (either in person or by email) in the simplest of terms: 'If I started with just one month of the year left, and I'm working full time, and my annual salary is as show - £16,965 per annum - surely the salary for that one month would be 1/12 of the annual rate: £1,413.75 per month. I don't quite follow why I'm not being paid at that monthly rate?'

WinMeSomeStuff

Thank you all for the advice. It was finally discovered she was still on part time pay 3 days a week. 

They have passed her a letter that she's owed over 3grand and will get it back split over the next two pay dates.

So glad it's sorted now, I was going nuts double checking my maths was right and I had not missed some kind of loophole being the reason she was paid so low ha!
 
Thanks again people!

kimwp

That's great news, thank you for coming back with an update, it's always nice to know things have been sorted.

Essex123

WinMeSomeStuff said:

Thank you all for the advice. It was finally discovered she was still on part time pay 3 days a week. 

They have passed her a letter that she's owed over 3grand and will get it back split over the next two pay dates.

So glad it's sorted now, I was going nuts double checking my maths was right and I had not missed some kind of loophole being the reason she was paid so low ha!
 
Thanks again people!

I’d be wanting to make sure they are reporting the £3k owed correctly to HMRC as earned in the last tax year as it looks likely your daughter would still be under her personal allowance and thus have no income tax to pay.

If they report it as current tax year earnings and assuming your daughter continues to work in the role all year then she will be over the personal allowance and therefore will be charged 20% tax on the £3k - I.e £600!