C1403 Posted February 27, 2019 Share Posted February 27, 2019 Wow. I've just had a play around with figures and the new NMW increase is terrifying! Our setting normally has a very healthy bank balance but a quiet start earlier this year is taking its toll a little. I've just worked out (roughly) that our wages cost is probably going to increase by £3k every four weeks. How is that possible.! Secretly hoping I've fudged up my figures as I'm not great with forumlas and our bookkeeper/treasurer have a different way of seeing it. How are other settings dealing with the increase. We have 10 staff. Our cleaner, 2x unqualified staff and 2x level 2 staff will both need increasing by the statutory amount. The others are above but obviously we need to keep things fair all round. Quote Link to comment Share on other sites More sharing options...
Cait Posted February 27, 2019 Share Posted February 27, 2019 Are you sure you're looking at the increase and not the total wages bill? 1 Quote Link to comment Share on other sites More sharing options...
Stargrower Posted February 27, 2019 Share Posted February 27, 2019 For a long time I have paid percentage increases above the minimum/living wage. So level 2 are 10% above, level 3 are 20% etc etc. This year, the few members of staff who are on the living wage will get their increase but I can't afford to give anyone else a rise. With pensions as well, if the proposed £10/hour for the living wage eventually comes in, that will be the end of us. Having said that, an increase in £3K every four weeks does seem a lot! That's £39000 a year extra you would have to find! Quote Link to comment Share on other sites More sharing options...
finleysmaid Posted February 27, 2019 Share Posted February 27, 2019 7 hours ago, C1403 said: Wow. I've just had a play around with figures and the new NMW increase is terrifying! Our setting normally has a very healthy bank balance but a quiet start earlier this year is taking its toll a little. I've just worked out (roughly) that our wages cost is probably going to increase by £3k every four weeks. How is that possible.! Secretly hoping I've fudged up my figures as I'm not great with forumlas and our bookkeeper/treasurer have a different way of seeing it. How are other settings dealing with the increase. We have 10 staff. Our cleaner, 2x unqualified staff and 2x level 2 staff will both need increasing by the statutory amount. The others are above but obviously we need to keep things fair all round. with a 40p increase (max) for 10 staff on an 8 hour shift I reckon it should be around £640 per month increase...very rough calculation done quickly!!! Quote Link to comment Share on other sites More sharing options...
finleysmaid Posted February 27, 2019 Share Posted February 27, 2019 On your figures the wage increase would be about £1.87 per hour increase? or am I missing something??? Quote Link to comment Share on other sites More sharing options...
Mouseketeer Posted February 27, 2019 Share Posted February 27, 2019 7 minutes ago, finleysmaid said: On your figures the wage increase would be about £1.87 per hour increase? or am I missing something??? I worked out that someone on 30hrs a week currently on NLW (7.83) having to increase to £8.21 would be £11.40 a week increase (+ HP & pension) C1403 I think you’d need to be paying approx 60k a week for a 4.9% increase to be an extra 3k a week ? Quote Link to comment Share on other sites More sharing options...
C1403 Posted February 27, 2019 Author Share Posted February 27, 2019 Ha ha let me have another look or better yet I'll leave it to our treasurer. 1 Quote Link to comment Share on other sites More sharing options...
C1403 Posted February 27, 2019 Author Share Posted February 27, 2019 Oh my. How embarrassing. Totally ignore me! I've just checked and my formulas for the cleaner and administrator had their annual salary not four weekly. PHEW! Admin. Delete this thread if you like. Thanks all for making me realise accounting/figures are not my forte....I'll stick to policies! X 2 1 Quote Link to comment Share on other sites More sharing options...
Mouseketeer Posted February 27, 2019 Share Posted February 27, 2019 That’s a relief though ....you can sleep tonight 😅 Sometimes you just don’t see what’s staring you in the face when number crunching so don’t feel bad :-) 1 Quote Link to comment Share on other sites More sharing options...
finleysmaid Posted February 28, 2019 Share Posted February 28, 2019 10 hours ago, C1403 said: Oh my. How embarrassing. Totally ignore me! I've just checked and my formulas for the cleaner and administrator had their annual salary not four weekly. PHEW! Admin. Delete this thread if you like. Thanks all for making me realise accounting/figures are not my forte....I'll stick to policies! X Believe me we've all done this! ...questioned my treasurer in front of the trustees about something completely absurd and they all just turned and laughed at me! Threads like this make us all go and check so you've done us a favour 2 Quote Link to comment Share on other sites More sharing options...
Stargrower Posted February 28, 2019 Share Posted February 28, 2019 You are not alone! As Finleysmaid says, it's so easy to make mistakes or not be able to see the wood from the trees. Join the club! Quote Link to comment Share on other sites More sharing options...
sunnyday Posted February 28, 2019 Share Posted February 28, 2019 18 hours ago, C1403 said: Oh my. How embarrassing. Totally ignore me! I've just checked and my formulas for the cleaner and administrator had their annual salary not four weekly. PHEW! Admin. Delete this thread if you like. Thanks all for making me realise accounting/figures are not my forte....I'll stick to policies! X Phew! Quote Link to comment Share on other sites More sharing options...
Cait Posted March 1, 2019 Share Posted March 1, 2019 😁😘 Quote Link to comment Share on other sites More sharing options...
Dennie Posted May 12, 2019 Share Posted May 12, 2019 As the minimum wage was being discussed here I wonder if I might ask for some further thoughts. Our committee is considering a pay rise for staff. One staff member has already had their wages increased in line with the new April minimum wage increase, whereas senior level 3s have yet to have any increase and are not far above the minimum wage. The committee is considering whether the increased minimum wage should be seen as sufficient for the individual staff member who is now on the new minimum wage or whether this staff member should have an additional rise as they have only had their legal requirement. In the last financial year this staff member was slightly above the April 2018 minimum wage. Finances are constantly stretched but the committee want to be seen to be fair all round. Any advice or views that I can pass on would be much appreciated. Thanks, Dennie Quote Link to comment Share on other sites More sharing options...
FSFRebecca Posted May 13, 2019 Share Posted May 13, 2019 We were in the same boat - we moved away from hourly rates and looked at putting all permanent staff onto salaries and have introduced a TOIL system to cover overtime / undertime. We looked at the pay scales for staff in neighbouring local authorities and pitched ourselves competitively. Having a clear pay scale made it much easier to justify/discuss why some people were paid one thing and some paid another. We couldn't possibly look at the +10%, +30% differences - we have differences between 1% and 5% (based on qualifications) of NMW as our differentators. We also put into place 'responsibility points' like the teachers pay scale so that staff who took on extra responsibilities could be paid an additional amount in recognition of their work. We had a long period of consultation and so far (2 months in), our staff are happy. We will have to reflect this in our fee increase to parents - we haven't had a fee increase for 2 years. Quote Link to comment Share on other sites More sharing options...
C1403 Posted May 28, 2019 Author Share Posted May 28, 2019 (edited) We tend to include all staff when considering pay rises. Although with the minimum wage constantly going up not sure how long that can happen. We hsve set our annual review date or April (used to be September) to avoid having to increase staff twice because of changes to min wage. Not much gap between our unqualified/training and level 2s at the moment. Once the unqualified have got their Level 3s they'll probably get a pay increase too. Really noticing the pinch this year! Edited May 28, 2019 by C1403 Typo Quote Link to comment Share on other sites More sharing options...
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