ChatterBank0 min ago
converting from weekly to monthly salary
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My boss wants us to change to monthly salary.For the conversion he multiplies our weekly salary by 52 and then divides by 12 to give a monthly amount.
we say that this is wrong as there are 365� days on average in a year including the leap years. His calculation assumes 364 day per year.Can we insist he uses the correct figures ??
Surely we are all losing idays pay per year??
Is he breaking our contract asthis originally clearly stated that we were paid weekly??
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Well I suppose he should multiply by 52.17 and divide by 12 but I do think you're splitting hairs.
I doubt there is any way to "insist", it is effecively a pay cut but he can probably do that.
You are losing 1 days pay, yes.
The contract also probably says that he can change it as and when.
Why don't you negotiate a 0.00327% rise!
Ask that he divides your weekly salary by 7 and then multiplies by 365 (or if you're really picky 365.25). I think he/she will tell you where to go despite losing 1.25 days salary per year.
This doesn't sound like much at all but of someone told me that I was losing 1.25 days paid holiday per year I'd want to go on strike! LOL
This doesn't sound like much at all but of someone told me that I was losing 1.25 days paid holiday per year I'd want to go on strike! LOL
You shouldn't loose any money, as the number of weeks in a year is not an exact figure. The day you appear to be loosing dosent exist as the day/date changes by one day every year.
ie one week (Mon/Fri) pay will run over into a new year, and you will be paid partly in one year and partly in the next.
Your annual salary is the same whether he divides it by 52 or 12 so multiplying your weekly figure by 52 to get an annual amount then dividing it by 12 is fair.
You could try arguing the point about the extra day in the leap year but don't hold your breath.
two very good answers, but i think Phillew needs to go back to school for some basic maths lessons if he can't work out that all the staff are ineffect receiving a wage cut. nice little earner for the boss!!!! He is using the current state of the manufacturing industry to shaft his own staff.This is only the lastest in along line of events,that is why everybody is so annoyed.
The company I used to work for pays salaries in 4 week periods, ie 13 paydays per year. This would get over your paycut problem! However, although sometimes there were 2 paydays in one calendar month, you do have to watch out for your outgoing direct debits/standing orders, which tend to be set up for the same date each month. Sometimes you may have more month than money
As far as I know he can't make this change without your consent because he is changing the terms of your contract so I think you have some bargaining position there; I would certainly suggest you use it so as not to lose out in the change to monthly pay. Weekly pay divided by 7, then multiplied by 365.25, then divided by 12 sounds right to me.
It may be esier to explain with an example.
Imagine a couple of folk, Andrew paid weekly and Brenda paid monthly. Andrew gets �100 a week and Brenda gets �433. 33 each month.
If February had started on a Monday this year, Andrew would get �400 at the end of the month but Brenda will get �433.33 (�33.33 MORE) because she gets the same amount each month.
Over the 52 weeks though, Andrew gets 52 x �100 or �5200 and Brenda gets 12 x �433.33 which is �5200.
So you see, no-one loses out changing from weekly to monthly........
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For a person to qualify for Statutory Sick Pay (SSP) a person has to earn above a certain weekly rate and fto work out the weekly rate for folk paid monthly, the Inland Revenue multiplies the monthly rate by 12 and divides by 52 so they assume a year is 52 weeks.
If you were paid on a daily basis you may have a case but you aren't .
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