Full time employment for one year

[jafersadeq]

Dear Members,

I employeed one employer this year, I signed a contract 40 hours a week and the total salaries are 18,000 GBP a year, I am paying 1500 GBP a month with NI and tax (net salary 1277.64 GBP +222.36 GBP for HMRC).
I want to know if I paid the minimum wages or not. Does the minimum wage include NI and tax?

40 hr X 52 week = 2080 hrs/year
2080 / 12 month = 173.33 hr/ month
18,000 GBP / year including NI and Tax
2,668 GBP to HMRC as NI and Tax + 15,332 GBP net paid to the employee
net 15,332 GBP /year --- 15,332/12= 1277.64 GBP/month---1277.64/173.33 hrs = 7.37 GBP net / hr

So I paid 8.65 GBP as gross and 7.37 GBP as net

Please Answer
Thanks
Jafer

[buntyz]

you are paying more than national minimum wage which is 6.70.

[zimba]

Dear Members,

I employeed one employer this year, I signed a contract 40 hours a week and the total salaries are 18,000 GBP a year, I am paying 1500 GBP a month with NI and tax (net salary 1277.64 GBP +222.36 GBP for HMRC).
I want to know if I paid the minimum wages or not. Does the minimum wage include NI and tax?

40 hr X 52 week = 2080 hrs/year
2080 / 12 month = 173.33 hr/ month
18,000 GBP / year including NI and Tax
2,668 GBP to HMRC as NI and Tax + 15,332 GBP net paid to the employee
net 15,332 GBP /year --- 15,332/12= 1277.64 GBP/month---1277.64/173.33 hrs = 7.37 GBP net / hr

So I paid 8.65 GBP as gross and 7.37 GBP as net

Please Answer
Thanks
Jafer

National min wage is £6.70 per hour gross income. The formula to calculate the hourly rate is this:

1. Find the basic annual hours in the worker’s contract for a year
2. Divide this by the number of times they get paid each year (eg 12 if they get paid monthly) - this gives you the average number of hours covered by each pay packet.
3.Divide the amount they get in each pay packet by this number (average hours). This gives you the worker’s hourly rate.

For a person paid annual gross income of £18000 (£1500 a month) on a full-time contact working 40 hours a week you get:

2080 hours in a year for 40 hours a week
2080 / 12 = 173.33 monthly hours worked
£1500 per month salary / 173.33 = £8.65 > min wage

[jafersadeq]

Thanks a lot buddy