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hubert
Posts: 532 Joined: Tue Jul 02, 2013 9:53 pm
Location: United Kingdom
Hi,
When you receive an annual bonus, is the 10% you keep equivalent to 10% of your monthly take-home pay or is it 10% of your annual take-home pay?
Hope that question makes sense!
Reason for asking is my company does quarterly bonuses and I've always calculated the "keep" part as 10% of a month, not 10% of a quarter.
Thanks!
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relieved33
Posts: 1166 Joined: Mon May 18, 2009 7:22 pm
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In our case it was of the month irrespective of what the extra covered. Three months backdated payrise was not based on 3 months but not 1 month.
chrisA
Posts: 68 Joined: Sat Apr 30, 2011 1:52 pm
Location: United Kingdom
It would be 10% of the nett monthly pay for that month only. You would keep more if you received this monthly instead of quarterly.
Foggy
Posts: 33396 Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom
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If your agreed take home was £1000 per month you keep £100 in the month the bonus was paid, regardless of how many months that bonus was for.
If you could get your employer to pay pro-rata monthly you would get to keep a lot more.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Leese
Posts: 91 Joined: Thu May 20, 2010 6:38 pm
Location:
If you're lucky enough to be with Freeman Jones they allow 10% of yearly salary if it's a yearly bonus.
hubert
Posts: 532 Joined: Tue Jul 02, 2013 9:53 pm
Location: United Kingdom
Ok thanks people, it's pretty much as I expected.
It just struck me that I might've been over-paying.
I've already asked my company to pay it monthly instead but they won't because it's a lot of extra admin.
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Adam Davies
Posts: 14596 Joined: Thu Mar 29, 2007 12:21 pm
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Hi
Wouldn't it be nice if all companies had the same idea as FJ with regard to annual bonus, makes sense really
Why be penalised because you have an annual bonus rather than monthly ?
Regards
Andam Davies
Michael Peoples
Industry Expert
Posts: 15189 Joined: Mon Nov 03, 2008 12:36 pm
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I do not believe that our firm has the discretion to use an annual figure for bonus calculation so we cannot do it. However I do know some people have their bonuses paid monthly but in arrears so Hubert this might be an option. Divide the bonus by twelve and ask your firm to up your wages accordingly for the next twelve months and this would work in your favour.
hubert
Posts: 532 Joined: Tue Jul 02, 2013 9:53 pm
Location: United Kingdom
Nice idea I just am reluctant to ask as it sounds odd and I don't want to tell them about the IVA.
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Michael Peoples
Industry Expert
Posts: 15189 Joined: Mon Nov 03, 2008 12:36 pm
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It does sound odd but worth it for you if it can be done.