DECREASING GROSS SALARY AND CAPPED NET PAY
Discussion
Hi,
On behalf of someone else I am trying to understand how it is possible for your gross salary to get lower every so many months but have the same amount of take home money for so many months, then a slight increase and what is the reason for your employer to do so.
Several queries came up on a friends payslip.
First thing is that they became pensionable age in Feb 2016, therefore as far as I know they do not pay NI anymore and it is not deducted from your wages so you are better off. This person had their NI contribution stopped in october 2015. They were born in 1953 making their retirement age 63. For some reason 1953 is a strange confusing year regards pension age, so it could be to do with this but not sure...any ideas ??
Whilst checking this on payslip, we discovered that her gross monthly salary was lower than previous months , we decided to do some calculations and it appears since october 2015 that they were deducting her NI cont. of 158.00 from her gross salary as it all added up to the same amount. Surely this is wrong and she has a right to have her NI cont in her wages.
Whilst checking this, we went back through 4 years of payslips (total time in employment is 7 years) for around every 6 months or so her gross salary changes and gets lower but she gets the same amount of take home with slight adjustment being made in tax and NI to come to the same take home amount. For example, some gross salary were 2007.00 for 3 months and then 1991.00 and take home was still 1611.00 then the gross salary changes to 1835.00 but the take home stays at 1611.00. The following year gross salary is something like 1820.00 and take home goes up to 1644.00. How does this make sense ? These arnt the exact figures but close (writing from memory)
I rang the accounts dept at work and was told her NI cont may have ended early due to the odd year of 1953. Then I said what about the decreasing gross salary. She said.. she had queried this herself before and spoken to appropriate person about it and that it was to do with the particular employees contract and that she was only person on the staff to be paid like this. I asked the accounts lady if it was legal and she said she didnt know. She will ask the appropriate person to put it in writing explaining why this happens.
Not sure if it is to do with the fact that the employee is a domestic worker and rest of staff are on agricultural based wages or whether it is because she is from the philipines and different rules apply regards wages.
We are hoping to get a copy of the contract she signed over 7 years ago to understand what is going on. It seems rather unfair that she obviously didnt know what she was signing at the time.
I guess she agreed to have some kind of capped wage and they adjust the salary so she doesnt earn more than they want her too and with tax codes changing they make the salary work with it. In four years it seems her take home wage has only risen by £100 per month
.
But where is her NI money which should be hers included in her wages now......
Hope this makes some sense to someone and perhaps they can shed some light on it. We will have to wait now and see what the "bosses" tell us....and hope I don't get told to "keep my nose out"
On behalf of someone else I am trying to understand how it is possible for your gross salary to get lower every so many months but have the same amount of take home money for so many months, then a slight increase and what is the reason for your employer to do so.
Several queries came up on a friends payslip.
First thing is that they became pensionable age in Feb 2016, therefore as far as I know they do not pay NI anymore and it is not deducted from your wages so you are better off. This person had their NI contribution stopped in october 2015. They were born in 1953 making their retirement age 63. For some reason 1953 is a strange confusing year regards pension age, so it could be to do with this but not sure...any ideas ??
Whilst checking this on payslip, we discovered that her gross monthly salary was lower than previous months , we decided to do some calculations and it appears since october 2015 that they were deducting her NI cont. of 158.00 from her gross salary as it all added up to the same amount. Surely this is wrong and she has a right to have her NI cont in her wages.
Whilst checking this, we went back through 4 years of payslips (total time in employment is 7 years) for around every 6 months or so her gross salary changes and gets lower but she gets the same amount of take home with slight adjustment being made in tax and NI to come to the same take home amount. For example, some gross salary were 2007.00 for 3 months and then 1991.00 and take home was still 1611.00 then the gross salary changes to 1835.00 but the take home stays at 1611.00. The following year gross salary is something like 1820.00 and take home goes up to 1644.00. How does this make sense ? These arnt the exact figures but close (writing from memory)
I rang the accounts dept at work and was told her NI cont may have ended early due to the odd year of 1953. Then I said what about the decreasing gross salary. She said.. she had queried this herself before and spoken to appropriate person about it and that it was to do with the particular employees contract and that she was only person on the staff to be paid like this. I asked the accounts lady if it was legal and she said she didnt know. She will ask the appropriate person to put it in writing explaining why this happens.
Not sure if it is to do with the fact that the employee is a domestic worker and rest of staff are on agricultural based wages or whether it is because she is from the philipines and different rules apply regards wages.
We are hoping to get a copy of the contract she signed over 7 years ago to understand what is going on. It seems rather unfair that she obviously didnt know what she was signing at the time.
I guess she agreed to have some kind of capped wage and they adjust the salary so she doesnt earn more than they want her too and with tax codes changing they make the salary work with it. In four years it seems her take home wage has only risen by £100 per month
.
But where is her NI money which should be hers included in her wages now......
Hope this makes some sense to someone and perhaps they can shed some light on it. We will have to wait now and see what the "bosses" tell us....and hope I don't get told to "keep my nose out"
Gassing Station | Jobs & Employment Matters | Top of Page | What's New | My Stuff