Hi, my boss has just given me a 5% pay rise which equates to an extra £50 per month after tax. I'll notify my IVA Supervisor once this comes into effect but was wondering are they likely to increase my IVA payments to include the 50% (£25)? Doesn't seem worth having a pay rise!
Hi Debbie.w - it is always best to keep you IP informed but normally pay rises are dealt with at your next annual review. Most companies would then look at increasing your payments by 50% of your net increase however you may find that some of your living expenses have also increased so you might not have to pay over any additional amounts.
IVA started Jan 2012
Last payment made June 2014 @100p
Completion certificate received Sept 2014
I just got a new job which came with a pay increase. I informed my IP (Payplan) who have in the past said they would deal with increases at review time in August. This time round they decided to change the rules and have gone and nabbed 50% extra off me each month from my next payment to them. I know my payments go up with pay increases, but fedup they they keep changing the rules to suit themselves. I am in desperate need of another cheap car and those extra £££ for a few months would have helped so much
Check your proposal carefully. They can only do what is detailed in there. Mine, for instance, stated that permanent pay rises would be considered at the annual review and a 50% net increase applied from the month following.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
As Foggy states it is important to study the wording of your own IVA. It is important to fill out a fresh income and expenditure form following a pay rise if extra payment is requested by your IP outside of the annual review
Don't declare anything until your next review is due, however tuck away the extra money in savings. If at review time they ask you to retrospectively pay the extra 50% then so be it.... if they don't, then it is yours!
Yes Payplan changed the rules for me too. To start with they were happy to wait for the annual review but then they decided they wanted 50% straight away.
You cannot change the terms in the middle of an IVA and cost of living payrises are caught at review time. If there was a substantial increase during the year you should keep your IP notified and in these circumstances a full review may need done but otherwise pay increases are dealt with at the annual review and not under the 10% 50/50 rule.
My IVA proposal mentions the 10% 50/50 rule but i'm not really sure what it means. My pay rise was 5% (£50 extra a month after tax). Do i take 10% off that then the balance would be split 50/50 or does it mean any increase in my wages needs to be over 10% to make a difference to my IVA payments?
If the 10% 50/50 rule applies you have nothing to pay if your standard net take up is £500 or more as the extra is less than 10%. However this should be dealt with at the annual review stage to cover increased costs of living but either way there should be no uplift.
The 10% 50/50 rule normally relates to extra income such as bonus payments or overtime. Permanent pay rises will be referred to separately and should be dealt with at review.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks for clarifications, should I tell my IVA supervisors now (pay rise not in effect until next month) or wait until my review which should be around July/Aug i think?
It does no harm to advise your IP of the payrise especially if you do overtime. This would ensure that the payrise is excluded from the overtime calculation and not addressed until the review time.
