CR001 wrote:ILR1980 wrote:Its clearly error from ECO if he/she wrote non salaried in introductory letter . Dont know what his employer wrote in employer letter but if he also wrote non salaried which is apparent if we look at variable income each month then it simply prove the ignorance of ECO about different calculation formula used for non salaried and bonuses/overtime
This is an FLR(M) application, not an entry clearance (ECO) application. Bear in mind that bonuses and overtime are also not 'guaranteed' income. It also depends what the contract of employment says vs the letter from employer.
It does not matter because rule about financial requirements are same for initial application or FLR(M) and
Guideline clearly tell that bonuses and overtime count and how to calculate them
Read 5.1.4 and 5.5.7 from guideline
https://www.gov.uk/government/uploads/s ... rement.pdf
5.1.4The 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.
5.5.7. Overtime, commission-based pay and bonuses (which can include tips and gratuities
paid via a tronc scheme registered with HMRC) will be counted as income from
employment where they have been received in the 6 or 12 months prior to the date of
application as applicable. Sometimes the person will receive the same amount of
income from overtime each month; sometimes overtime payments will vary, with
different amounts (if any) each month. All overtime in salaried employment will be
calculated based on the approach to income from non-salaried employment. This will be
an annualised 6-month average for the overtime which will be added to the level of the
gross annual salary.
