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12 Montyhs Pay


titchy
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We are a 9-12 term time only playgroup open 39 wks a yr. I am currently probably like evryone at the moment looking for ways to cut costs and have just had a thought regarding pay. I'm wondering if I split the 39wks over 12 months whether or not I will avoid employers n.i. Obviously I know this will depend on their rate pf pay etc as to whther or not this is likely to be the case. However I'm wondering how I would pay holiday pay e.g. I understand that you cannot pay it on top of their wages and it has to be paid as they are taking their hol if that makes sense. What are everyones holiday arrangemnts in similar settings e.g. do you all just get paid what you are entitled to over aug. Would love to hear from settings who slit the cost over 12months. How do you do it?

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rolled up pay is so confusing...

 

how do other companies do it open all year was my question.. and they do just pay 12 instalments for salary and holiday taken during that 12 month... that is what happens to my husband so I question why it is not possible for us?

 

So that isd what we did... added holiday pay onto the 39 weeks... then divided it by the 12 months so we had a regular monthly income...

 

For me , I was paying holiday pay when they took it as they were being paid when not working..

 

 

Rolled up pay was to us adding the holiday pay to the 39 weeks and then only paying for 39 weeks... hence no money while on holiday

 

Staff were happier with this arrangement.. and to be honest no one ever checked to see if or what we were doing as regard to wages... if it was legal or not?.. we were happy to argue the fact we were paying while staff were on holiday./ not working..

 

any hours over and above the usual ones staff filled in a timesheet and were paid this as overtime in the relevant month..

 

as to saving us money.. not sure it did really... but we were open longer hours so our wages would have been higher..

 

 

you could always split the 39 weeks over the number of weeks in a year excluding holiday entitlement, and then just pay the remainder during the entitlement weeks.. if doing that my choice would be for the summer break time.. when we looked at doing it that way they would actually get more money during the summer break .

 

 

Inge

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I was going to ask committe if we could get paid like this (would have to ask other staff tho first!).

Can see that if you do over your normal hoursthat it would be paid overtime but what about if you did under eg one half term due to low numbers i had to drop session from 29 hrs per week to 24 hrs. How would that then work?

 

It would mean we all get less wage per month but at least we would be paid regularly.

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I have staff who work term-time only and staff who are 51 weeks, my term timers get paid for thier weeks worked plus four weeks holiday and it is equally divided over 12 months. If they were to work less hours i.e if numbers dropped, the extra hours would be accrued and worked when we were busier, and some may cover extras like parents evenings etc. As for the employers NI - it may work out for you that both you and they will dip in depending on thier salary I suppose? If they are claiming Tax Credits etc then I suppose that might be easier with a single rate over the 12 months :o .

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Hi

 

I do the same as Inge, I add holiday onto yearly salary and then divide by 12!! In fact my accountant does all the payroll and has said there is no reson why we cant do this!

It makes it easier for us, I do still pay NI contributions usualy about £10 per month.

 

Kris

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my term timers get paid for thier weeks worked plus four weeks holiday and it is equally divided over 12 months.

Don't your term timers get 5.6 weeks' holiday the same as everyone else? Or am I being really dense?

 

Maz

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Yes I thought that too Maz!

 

I get 38 weeks pay plus holidays of 5.6 weeks paid monthly.

 

We just make up the time if we're out sick or need time off for whatever reason rather than have to calculate the figures again.

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Holiday entitlement: your rights

All workers have a right to a minimum of 5.6 weeks paid annual leave, but your employer may offer more. Find out the basics of working out your holiday entitlement, including your rights on bank holidays.

 

 

The above statetment was taken from Directgov web site.

 

Redjayne I think you will find you are underpaying holiday entitlement :o

Edited by BrendaS
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we have ours divided by 12 so we are paid the same each month. There is only one problem if your member of staff leave at a certain time they may have been paid more than they are entitled to. we have it writen into our contracts that the money will be checked at the time of leaving to see if you owe any money to the setting, which is ajusted on your last wage.

 

Rosie

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if we dropped hours then we had it deducted from the month , only way we could do it... our committee were good in if this happened they did not insist on the holiday pay being adjusted as well, but if we did regular extra hours they did increase it to cover this..

 

all so complicated with the flexible hours, part time hours, etc etc

 

Inge

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If you work term time only you dont qualify for the full 5.6 weeks holiday. its worked out pro rata . The Directgove site explians it really helpfully. Its unlawful to pay holiday pay rolled in with the salary but our staff want it that way, so as unlawful isnt the same as illegal, we're continuing to do it. We've added a bit to the contract letter that states while they are aware etc, this is ho wthey want their pay.

The directgov site is HERE scroll down to term time only workers.

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I had same problem - I was told I could not roll the holiday into the pay. And as there was a deduction in pay I nearly had a riot.

 

What I have to do from September is to pay them their salary over 10 months (or hours worked) then divide the holiday money over the christmas easter and summer holiday.

 

the outlay is higher each month lower during half term and holidays.

 

We are term time too. IN rened accommadation.

 

If anyone said to me would you like to run your own nursery now knowing what I know I would walk away.

 

The outlay, constantly paying out/ HAVING A MOAN

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i do the same: 38 weeks term time plus 5.6 weeks holiday divided by 12. that's how school teaching assistants get paid as far as I know and they are employed by local government so i reckon it must be OK.

 

i didn't realise until it was too late that the holiday could be pro rata for term time only, a mistake which has damaged my bank balance!!

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i didn't realise until it was too late that the holiday could be pro rata for term time only, a mistake which has damaged my bank balance!!

I inherited this situation from the previous owner - but have never calculated how big the difference is. Not sure I want to find out! :o That said, our staff get paid so little that a little bit extra is very welcome.

 

Maz

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