I have a new client, Ltd Co with a new employee-they have asked me to calculate what pay would be based on:
Starting April 2012-when business started:
Works 3 working days per week,7.5 paid hours @ £7.50 per hour = £675 per month but they calculated monthly salary as 3 x 7.5 x 52 x £7.50/12 = £731.25
which is right??
also,from July, she is working 2 Saturdays per month for 6 paid hours @ £7.50 per hour = £90 but again they have calculated monthly salary as 12/4 x 52 x £7.50/12 = £97.5??
They're right. The problem here is that £675 is counting a month as having 4 weeks. That can't be right, can it because as you know most months have more than 28 days. They are multiplying by 52 and dividing by 12 to get an average month.
Working "2 saturdays a month" could be an imprecise instruction for someones pay as that would mean 24 Saturdays per year.
Their formula "12/4 x 52 x £7.50/12 = £97.5" indicates it is 26 saturdays per year.
