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  • FIRST POST
    • JustAnotherSaver
    • By JustAnotherSaver 8th Nov 18, 11:41 PM
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    JustAnotherSaver
    How to calculate what overtime is worth to you?
    • #1
    • 8th Nov 18, 11:41 PM
    How to calculate what overtime is worth to you? 8th Nov 18 at 11:41 PM
    and without getting picky, by worth i mean what exact amount of money will be earned (net) from the hours done.


    I don't get a salary, i don't do a set amount of hours (one week i could do 47, the next i could do 62 & the rest could be anywhere in between in 15 minute increments), my pay varies constantly due to this.


    I've often wondered what a set amount of hours overtime would be worth to me. For example...


    By Friday let's say i've worked 45 hours. Let's also assume i've got the weekend off but i offer to do 5 hours. What that extra 5hrs would get me in the pocket (after tax and Nat Ins) and how to calculate that so i can work it out with any pay rises we may get.




    We get paid an overtime rate for anything after 40.00hrs, so from 40.15hrs we're on a higher rate of pay.


    So in the case above, i'll have done 40 hours at basic pay, 5 hours at overtime rate and then i've offered to do a further 5 hours.


    For example sake, let's say the overtime rate of pay is 10.00.



    So yes it would get me 50 but then tax and NI would need to come off this. I'm a BR tax payer.



    How would i calculate this?

Page 1
    • Ja7188
    • By Ja7188 9th Nov 18, 7:00 AM
    • 215 Posts
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    Ja7188
    • #2
    • 9th Nov 18, 7:00 AM
    • #2
    • 9th Nov 18, 7:00 AM
    Have a look at the tools avaialable at https://www.thesalarycalculator.co.uk/salary.php - they should prove useful. However, bear in mind that since your hours vary week by week, you'll need to take the results as a guide only...
    • engineer amy
    • By engineer amy 9th Nov 18, 9:07 AM
    • 640 Posts
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    engineer amy
    • #3
    • 9th Nov 18, 9:07 AM
    • #3
    • 9th Nov 18, 9:07 AM
    If you have done a full week, its probably best to assume that your tax free allowances and NI threshold have been used up. So any additional earnings will be at the marginal rate.


    Take 20% for tax and 12% for NI off any overtime, you will receive 68% in your hand - for 5 hours overtime at 10 per hour you will receive 34 on top of your normal weekly wage
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    • getmore4less
    • By getmore4less 9th Nov 18, 11:40 AM
    • 33,476 Posts
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    getmore4less
    • #4
    • 9th Nov 18, 11:40 AM
    • #4
    • 9th Nov 18, 11:40 AM
    and without getting picky, by worth i mean what exact amount of money will be earned (net) from the hours done.

    You have to get picky because it depends on a number of variable, including pay periods and rates of pay.


    I don't get a salary, i don't do a set amount of hours (one week i could do 47, the next i could do 62 & the rest could be anywhere in between in 15 minute increments), my pay varies constantly due to this.

    that helps a bit because there is a min per week paid

    I've often wondered what a set amount of hours overtime would be worth to me. For example...


    By Friday let's say i've worked 45 hours. Let's also assume i've got the weekend off but i offer to do 5 hours. What that extra 5hrs would get me in the pocket (after tax and Nat Ins) and how to calculate that so i can work it out with any pay rises we may get.

    still not enough info but now you have only worked 45 house above you said the min was 47.


    We get paid an overtime rate for anything after 40.00hrs, so from 40.15hrs we're on a higher rate of pay.


    So in the case above, i'll have done 40 hours at basic pay, 5 hours at overtime rate and then i've offered to do a further 5 hours.


    For example sake, let's say the overtime rate of pay is 10.00.


    So yes it would get me 50 but then tax and NI would need to come off this. I'm a BR tax payer.



    How would i calculate this?
    Originally posted by JustAnotherSaver
    The base calculation on the example is 20% tax and 12% NI.

    At some point the tax goes upto 40% and the NI comes down to 2% but may not be at the same time

    unlikely with a base on 47hours of around 24k.
    • RPWJ
    • By RPWJ 9th Nov 18, 12:12 PM
    • 19 Posts
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    RPWJ
    • #5
    • 9th Nov 18, 12:12 PM
    • #5
    • 9th Nov 18, 12:12 PM
    Take a 1/3 off and you won't be far away.
    • General Grant
    • By General Grant 9th Nov 18, 2:32 PM
    • 788 Posts
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    General Grant
    • #6
    • 9th Nov 18, 2:32 PM
    • #6
    • 9th Nov 18, 2:32 PM
    a
    I don't get a salary, i don't do a set amount of hours (one week i could do 47, the next i could do 62 & the rest could be anywhere in between in 15 minute increments), my pay varies constantly due to this.
    Originally posted by JustAnotherSaver
    I hope you have signed an opt-out from the 48-hour working week provision of the WTRs.
    • JustAnotherSaver
    • By JustAnotherSaver 9th Nov 18, 8:08 PM
    • 3,363 Posts
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    JustAnotherSaver
    • #7
    • 9th Nov 18, 8:08 PM
    • #7
    • 9th Nov 18, 8:08 PM
    You have to get picky because it depends on a number of variable, including pay periods and rates of pay..
    Originally posted by getmore4less
    The reason i put that in there was for the unfunny people of the board who spend all their time not answering a question straight. I could see it coming a mile off if i didn't put that opening line in....


    "overtime is worth nothing to me because once i've done my time i like to spend time at home with my family". Like yeah nice one, great answer So the reason i put it in there was to try and do away with the comedians.


    still not enough info but now you have only worked 45 house above you said the min was 47. .
    Originally posted by getmore4less
    I really do wish people wouldn't be so finicky.



    It's pretty obvious my whole post with the hours and the rate of pay were just 'for examples sake' to try and get towards a formula that is used.



    I would find it difficult to believe that the method of calculation would be different for someone doing 45 hours to someone doing 47 hours. Sure the amount in the pocket would differ but the method of calculation? I struggle to believe that it would differ so what does the specifics of the example matter? If i had said 10 hours per week then i could understand your point because then i'd probably come under some kind of tax / national insurance allowance so the method of calculation would be different, but at 45 or 47 or 55 or 60 or 70 etc hours i've used up all my allowance i would guess.



    At some point the tax goes upto 40% and the NI comes down to 2% but may not be at the same time

    unlikely with a base on 47hours of around 24k.
    Originally posted by getmore4less
    Which is why i said i'm a BR tax payer - to save people from wasting time talking about higher rate tax payers.

    • JustAnotherSaver
    • By JustAnotherSaver 9th Nov 18, 8:10 PM
    • 3,363 Posts
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    JustAnotherSaver
    • #8
    • 9th Nov 18, 8:10 PM
    • #8
    • 9th Nov 18, 8:10 PM
    I hope you have signed an opt-out from the 48-hour working week provision of the WTRs.
    Originally posted by General Grant
    If we didn't opt out of the 48 hour working week we probably wouldn't be able to afford to feed ourselves

    • theoretica
    • By theoretica 9th Nov 18, 8:45 PM
    • 5,407 Posts
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    theoretica
    • #9
    • 9th Nov 18, 8:45 PM
    • #9
    • 9th Nov 18, 8:45 PM
    As well as tax and NI do you have a percentage going to a pension? That will need to be included in the calculation if you are interested in money in your pocket, rather than financial benefit you are gaining.
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
    • Savvy_Sue
    • By Savvy_Sue 9th Nov 18, 9:04 PM
    • 39,178 Posts
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    Savvy_Sue
    You'll probably think I'm being picky, but ...

    You said you were a BR taxpayer. Does that mean your tax code is BR, or that your earnings are low enough not to go into the higher rate of tax?

    It does make a difference: someone pointed out that your tax-free allowance would be used up on your non-overtime hours, but if your tax code is BR then you're not being given a tax-free allowance, so ALL your earnings have income tax deducted.
    Still knitting!
    Completed: 1 adult cardigan, 3 baby jumpers, 3 shawls, 1 sweat band, 3 pairs baby bootees,
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    • JustAnotherSaver
    • By JustAnotherSaver 9th Nov 18, 10:33 PM
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    • 539 Thanks
    JustAnotherSaver
    As well as tax and NI do you have a percentage going to a pension? That will need to be included in the calculation if you are interested in money in your pocket, rather than financial benefit you are gaining.
    Originally posted by theoretica
    I forgot about this. Yes i pay the minimum percentage. I would pay more but my employer will only pay the minimum anyway so the 'more' bit that i do pay goes in to my SIPP instead.


    So how would you calculate it now then?


    You'll probably think I'm being picky, but ...

    You said you were a BR taxpayer. Does that mean your tax code is BR, or that your earnings are low enough not to go into the higher rate of tax?

    It does make a difference: someone pointed out that your tax-free allowance would be used up on your non-overtime hours, but if your tax code is BR then you're not being given a tax-free allowance, so ALL your earnings have income tax deducted.
    Originally posted by Savvy_Sue
    No no, actually in this case i don't think you're being picky at all as now you've mentioned it i've realised there is a BR tax code so it's a fair question.


    Thing is i come on here and i see abbreviations all day long and sometimes they baffle me senseless. So i get in to the habit of trying to abbreviate things also.



    I meant Basic Rate tax payer as in i earn about 24k tops. 23 i think it was last year, give or take a little.

    • theoretica
    • By theoretica 9th Nov 18, 10:34 PM
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    theoretica
    Alternatively, find two of your payslips which are close but not identical. What is the difference between them in 1) hours and 2) money?
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
    • JustAnotherSaver
    • By JustAnotherSaver 9th Nov 18, 10:39 PM
    • 3,363 Posts
    • 539 Thanks
    JustAnotherSaver
    Alternatively, find two of your payslips which are close but not identical. What is the difference between them in 1) hours and 2) money?
    Originally posted by theoretica
    Was great when we got paid weekly. No time at all between payslips and you could sort of manipulate to a degree to get one week say 30mins more than the previous.


    Pretty difficult to do it now we're paid monthly.

    • YorkshireBoy
    • By YorkshireBoy 9th Nov 18, 10:42 PM
    • 30,315 Posts
    • 18,223 Thanks
    YorkshireBoy
    So how would you calculate it now then?
    Originally posted by JustAnotherSaver
    Well first of all you'd need to find out if your employer deducts a pension contribution from you from overtime and bonus payments...many employers don't. I'm salaried, with an annual (variable) bonus, and my employer does not automatically take a DC pension contribution from the bonus.
    • JustAnotherSaver
    • By JustAnotherSaver 9th Nov 18, 11:12 PM
    • 3,363 Posts
    • 539 Thanks
    JustAnotherSaver
    Well first of all you'd need to find out if your employer deducts a pension contribution from you from overtime and bonus payments...many employers don't. I'm salaried, with an annual (variable) bonus, and my employer does not automatically take a DC pension contribution from the bonus.
    Originally posted by YorkshireBoy
    Bonus what's one of them?


    But yes our pension contributions are based on the gross pay we earn in the month i would imagine.

    • Savvy_Sue
    • By Savvy_Sue 10th Nov 18, 1:48 AM
    • 39,178 Posts
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    Savvy_Sue
    But yes our pension contributions are based on the gross pay we earn in the month i would imagine.
    Originally posted by JustAnotherSaver
    but if you want anything like an accurate answer, you need to stop imagining and find out ...

    There are various ways in which SA pension contributions can be calculated. We use a fixed % of the monthly gross salary, but when we were setting up our scheme (small employer so one of the last to do so) there were other options: we could have opted for a slightly different % of the regular monthly salary ignoring any additional payments.

    So our pensions work a bit like student loans: if someone gets an additional payment or overtime, then they pay more into their pension and - if they have one - also into their student loan. If we'd set the scheme up slightly differently, their pension payments would always be the same, but if they earned more in one month then they'd pay more into their SL.
    Still knitting!
    Completed: 1 adult cardigan, 3 baby jumpers, 3 shawls, 1 sweat band, 3 pairs baby bootees,
    1 Wise Man Knitivity figure + 1 sheep, 2 pairs socks, 2 hats, 2 balaclavas for seamen, 1 balaclava for myself, multiple poppies, 3 peony flowers, 4 butterflies ...
    Current projects: ready to decrease / decreasing on all parts of the mohair cardigan pattern!
    • JustAnotherSaver
    • By JustAnotherSaver 10th Nov 18, 10:59 AM
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    JustAnotherSaver
    Sorry - I posted last night with actual figures for getmore4less benefit but in doing so I noticed something which didn't make sense so I had to remove it and leave my last post as it is because I know some of the 'higher up' people use this website and I didn't want to add suspicion as to who I am, just in case, so removed it before it got quoted until I can try and figure out what's going on (regards pension contributions).

    • theoretica
    • By theoretica 10th Nov 18, 12:31 PM
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    theoretica
    If you don't want to give any specific numbers I suggest you take your pay slips since April (if your pay and tax haven't changed since then) and plot on a graph hours and pay in pocket. If they lie on a straight line (it will not go through zero) your calculation is fairly easy to do - pick two and divide their difference in money by the difference in hours. Any months where you had weeks in which you did not work 40 hours - such as holidays - may not be on the line.
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
    • JustAnotherSaver
    • By JustAnotherSaver 11th Nov 18, 11:01 PM
    • 3,363 Posts
    • 539 Thanks
    JustAnotherSaver
    Long shot since i guess most will want things on the open forum but is there any of you reading this who's confident in knowing how pension contributions are calculated and think they could maybe shed light on the situation if i gave them real figures (via private message)?


    Story short when i've worked X hours (a lot) i've contributed a certain amount but when i worked Y hours in another month (less) i contributed less than in the X-hours month for some reason.

    • Savvy_Sue
    • By Savvy_Sue 11th Nov 18, 11:42 PM
    • 39,178 Posts
    • 36,086 Thanks
    Savvy_Sue
    Long shot since i guess most will want things on the open forum but is there any of you reading this who's confident in knowing how pension contributions are calculated and think they could maybe shed light on the situation if i gave them real figures (via private message)?
    Originally posted by JustAnotherSaver
    Not confident, but who's your pension with? That's the first step. Next step, where's your enrolment letter? That should have some information in it.

    Story short when i've worked X hours (a lot) i've contributed a certain amount but when i worked Y hours in another month (less) i contributed less than in the X-hours month for some reason.
    Originally posted by JustAnotherSaver
    That suggests to me that your pension contributions are based on your gross salary for the month. You're paid more gross, you make higher pension contributions. Does your employer also make higher pension contributions? That's another indication.

    It ought to be possible to work out what % contributions you're making and see if that's consistent. I'm not great at calculating %es, I know you divide one by the other and multiply by 100 or something like that, but I never know which way round it is. I'm sure google would tell you how to do this ...
    Still knitting!
    Completed: 1 adult cardigan, 3 baby jumpers, 3 shawls, 1 sweat band, 3 pairs baby bootees,
    1 Wise Man Knitivity figure + 1 sheep, 2 pairs socks, 2 hats, 2 balaclavas for seamen, 1 balaclava for myself, multiple poppies, 3 peony flowers, 4 butterflies ...
    Current projects: ready to decrease / decreasing on all parts of the mohair cardigan pattern!
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