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Annual salary calculation after min wage rise

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Tahir78
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Annual salary calculation after min wage rise

Post by Tahir78 » Sun Nov 02, 2014 3:32 pm

In October the min wage was raised to 6.50 and the old rate was 6.31.

So for example if i was working at the old rate @ 6.31 * 16 hrs = 100.96 x 52 wks = 5,249.92 Annually.

So lets say for 28 weeks i received 100.96 which equals to 2,826.88
And then in the month of october i got paid at the new rate for the reminder of the year.

Now if i was to get my employer to write me a letter confirming my annual salary, would he/she need to calculate it at the old rate of 6.31ph or 6.50ph. Or would they need to calculate the annual salary for the current year using half the old rate and half the new rate.

The reason i ask is because the payslips will not add up for the year at just one rate.

I know its a bit confusing as i am too.

Its for the purpose of spouse visa

Rayking
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Re: Annual salary calculation after min wage rise

Post by Rayking » Sun Nov 02, 2014 8:12 pm

For spouse's visa purpose,your annual income will simply be calculated by adding your income in the last six months then multiply by 2. Or in the last 12 months for cat B.
* Employer is expected to state the actual figure,not the estimated salary usually given in employment letter or b4 starting a job. Read more about cat A & cat B
So it really doesn't matter if your wage is raised or not,as long as you meet the financial requirement.
You can just explain this in additional information and add evidence of the increment.

Tahir78
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Re: Annual salary calculation after min wage rise

Post by Tahir78 » Mon Nov 03, 2014 1:29 am

Rayking wrote:For spouse's visa purpose,your annual income will simply be calculated by adding your income in the last six months then multiply by 2. Or in the last 12 months for cat B.
* Employer is expected to state the actual figure,not the estimated salary usually given in employment letter or b4 starting a job. Read more about cat A & cat B
So it really doesn't matter if your wage is raised or not,as long as you meet the financial requirement.
You can just explain this in additional information and add evidence of the increment.
Thank you for the info. I had a read of Apendix 2 section 5.

I think i fall under Cat A

My basic pay for my full time job is 1130.00 pm gross (salaried) which is 13,560 annually.

My part time job is non salaried and get paid 100.96 pw gross for 16hrs pw @ 6.31phr. (this is before the min wage increase)
5.1.7. Case studies – Category A: With current employer for 6 months or more – person residing in the UK Example (a) In an application for entry clearance the applicant’s partner is in salaried employment at the date of application and has been working for the same employer for 7 months prior to the date of application. For the first three months of the 6 months prior to the date of application his gross annual salary was £15,500. Then he was promoted by his employer so that for the next three months (those being the three months immediately prior to the date of application) his gross annual salary was £18,700. The applicant’s partner is relying on Category A and so must have earned a level of gross annual salary which equals or exceeds the level relied upon in the 6 months prior to the date of application. Therefore the figure that can be used towards the requirement will be the lowest level of annual salary received during this 6 month period prior to the date of application which is £15,500. The couple have no other source of income or savings and so the financial requirement is not met.
5.1.4. The only difference in Category A between salaried and non-salaried employment is how gross annual salary or employment income is calculated: Where the person is in salaried employment – they must have been paid throughout the period of 6 months prior to the date of application at a level of gross annual salary which equals or exceeds the level relied upon in the application. Therefore the figure used towards the requirement will be the lowest level of annual salary received during the 6 month period. Where the person is in non-salaried employment – the level of gross annual employment income relied upon in the application will be the annual equivalent of the person’s average gross monthly income from non-salaried employment in the 6 months prior to the date of application (where that employment was held throughout that period). To calculate this annualised average for non-salaried employment in Category A the following calculation should be used: (Total gross income from employment held throughout the 6 month period, divided by 6) multiplied by 12 = Income from non-salaried employment that can be counted towards the financial requirement.
Now with the min pay rise the decision maker will count the lowest figure prior to the pay rise. This i guess means 100.96 x 52wks = 5249.92 + my basic annual pay 13,560 =18,809.92

So if im correct do i do both jobs under Cat A?

Thank you.

Rayking
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Re: Annual salary calculation after min wage rise

Post by Rayking » Mon Nov 03, 2014 4:33 am

You need to be careful if your job is salaried employment because the lowest of the income will be used to calculate your income in six month. How sure are you it's salaried employment? Do you get paid hourly or get paid the same amount irrespective of the hour done?
You might need to be very sure of that.

Tahir78
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Re: Annual salary calculation after min wage rise

Post by Tahir78 » Mon Nov 03, 2014 10:03 am

Rayking wrote:You need to be careful if your job is salaried employment because the lowest of the income will be used to calculate your income in six month. How sure are you it's salaried employment? Do you get paid hourly or get paid the same amount irrespective of the hour done?
You might need to be very sure of that.
I get a basic pay for my full time job. Fixed monthly rate.

For my part time job i get paid hourly. Non salaried

Your confusing me. ☺

SoHopeful
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Re: Annual salary calculation after min wage rise

Post by SoHopeful » Mon Nov 03, 2014 10:22 am

To answer your initial query, this question has been raised a few times but i have not seen any clear cut answers... As it is non salaried employment I would suggest your employer works out what your earnings were at both rates and add them together for the total annual earnings.

Rayking
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Re: Annual salary calculation after min wage rise

Post by Rayking » Tue Nov 04, 2014 2:10 am

Tahir78 wrote:
Rayking wrote:You need to be careful if your job is salaried employment because the lowest of the income will be used to calculate your income in six month. How sure are you it's salaried employment? Do you get paid hourly or get paid the same amount irrespective of the hour done?
You might need to be very sure of that.
I get a basic pay for my full time job. Fixed monthly rate.

For my part time job i get paid hourly. Non salaried

Your confusing me. ☺
Confusing you? Sorry about that,hope senior members can help out then.

julian1972
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Re: Annual salary calculation after min wage rise

Post by julian1972 » Tue Nov 04, 2014 3:14 am

Rayking wrote:
Tahir78 wrote:
Rayking wrote:You need to be careful if your job is salaried employment because the lowest of the income will be used to calculate your income in six month. How sure are you it's salaried employment? Do you get paid hourly or get paid the same amount irrespective of the hour done?
You might need to be very sure of that.
I get a basic pay for my full time job. Fixed monthly rate.

For my part time job i get paid hourly. Non salaried

Your confusing me. ☺
Confusing you? Sorry about that,hope senior members can help out then.
For the non-salaried employment, forget the fact of whether you were paid at the old or new rate, what's important is that you are expected to have earned a certain amount during a six month period. Your earnings for the whole six months would simply be added together and then multiplied by two, in order to give you an annual income.

Assuming in the six months prior to submitting your application you earned 2,500 pounds, add that to your salaried employment gross earnings of 13,000 pounds. That's would be 15,500. You would not meet the financial requirement.

Tahir78
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Re: Annual salary calculation after min wage rise

Post by Tahir78 » Tue Nov 04, 2014 7:42 pm

Ok thanks. My both jobs (salaried and non salaried) combined gives me an annual salary of £18,809.00

I have been with both employers for over 6 months.

So would I fall under Category A? Also in the application theres only space for one job. Would it be ok to print the same page again and using it for my second job?

SoHopeful
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Re: Annual salary calculation after min wage rise

Post by SoHopeful » Wed Nov 05, 2014 12:07 pm

You can only rely on Cat A if you earned £9300+ in 6 months prior to applying.
The calculations you are relying on seem to be for over a period of 12 months so may be better to apply using Cat B.

Yes, you can photocopy the page to add details of the 2nd job or put the info in the additional info box at the end of the form.

Obie
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Re: Annual salary calculation after min wage rise

Post by Obie » Wed Nov 05, 2014 12:13 pm

If both the salaried and non-salaried income aggregated , is up to 9300 over a six months them he can rely on Cat A.

Remember the Non-Salaried Pay, will be worked out as the sum of your 26 weeks wages, divided by 6, and multiply by 12 months, to attain how much you will get as a gross annual wage from it. Then that amount will be added to you gross earning from your salaried employment.
Smooth seas do not make skilful sailors

Tahir78
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Re: Annual salary calculation after min wage rise

Post by Tahir78 » Wed Nov 05, 2014 12:39 pm

SoHopeful wrote:You can only rely on Cat A if you earned £9300+ in 6 months prior to applying.
The calculations you are relying on seem to be for over a period of 12 months so may be better to apply using Cat B.
obie wrote:If both the salaried and non-salaried income aggregated , is up to 9300 over a six months them he can rely on Cat B.


I have earned £9,404.96 both jobs combined in the last 6 months, so that means im relying on Cat A

I will only be providing 6 months payslip and bank statements.

If i was to make a mistake choosing either Category would they refuse my application?

Obie
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Re: Annual salary calculation after min wage rise

Post by Obie » Wed Nov 05, 2014 1:55 pm

Yes entry clearance officer will refuse if you are unable to demonstrate you meet the requirement of the category you selected.
Smooth seas do not make skilful sailors

Tahir78
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Re: Annual salary calculation after min wage rise

Post by Tahir78 » Wed Nov 05, 2014 2:56 pm

Category A applies to those who have worked with their current employer for more than six months. Category B applies to those who have worked with their current employer for less than six months and those with a variable income.
Category A applications

Salaried employment in the UK

The applicant’s partner must demonstrate that, as at the date of application, they have been working for the same employer for the last six months. The applicant’s partner may then count their gross annual salary towards meeting the financial requirement.
Category B applications

This category applies where the applicant’s partner (and/or the applicant if they are in the UK with the right to work) has worked for their current employer for a period of less than six months OR those who earn a variable income.

Salaried employment in the UK

Under category B the financial requirement must be evidenced in two parts.

First, the applicant’s partner will need to show that as at the date of application, they receive a gross annual income which meets or exceeds the financial requirement. Again, any shortfall may be supplemented by specified non-employment income, cash savings or pensions, as described above.

Second, the applicant’s partner must, in addition, have received a salary which meets or exceeds the required level in the 12 months prior to the date of application. Income received from non-employment income and/or a pension may be added to meet the required level. However, cash savings cannot be relied upon to meet the second part of the test.

To provide an example, the applicant’s partner starts a new job four months before the date of application. The new job has a salary of £20,000. The applicant’s partner meets the financial requirement and therefore satisfies the first part of Category B.
From the above it seems I dont fall into Category B....

SoHopeful
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Re: Annual salary calculation after min wage rise

Post by SoHopeful » Thu Nov 06, 2014 1:03 pm

Tahir78 wrote: I have earned £9,404.96 both jobs combined in the last 6 months, so that means im relying on Cat A

I will only be providing 6 months payslip and bank statements.

If i was to make a mistake choosing either Category would they refuse my application?
If you got that sum by working it all out as Obie stated then yes it would be Cat A. I'd suggest a spreadsheet with the weekly payments to show how you came to that amount.
I don't know if ECOs are willing to look at an alternative category if you don't meet the one you applied with.

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