www.iva.co.uk

Hi everyone. Next month I am expecting to get a cost of living salary increase. It will probably be 1% of my annual salary but definitely not more that 2%. My question is, do I get to keep all of this rise (it would really help towards my outgoings as everything has got so expensive this year) or does it follow the same rule as bonuses where I can keep the first 10% of my additional pay then 50% of the balance and hand the other 50% over into my IVA payments?

Hi Sally,

Best thing to do is run it past your IP. Some companies don't want to know until the annual review, others immediately.

They know how much stuff has gone up recently, and if your expenditure is more I'm sure you will be able to keep some, if not all of it.

I am quite sure that your expenditure has risen by at least 2% and therefore your pay rise probably wont be wanted by your IVA. Let your IP know just to keep them "in the loop".

Paul

I'm looking forward to a payrise but doubt it will be anything good. Hubby hasn't had one in two years, too many competitiors now for his job...or so his boss keeps telling him x

As far as my agreement with DFD goes, they do not seek an increase in contributions to my IVA where my salary has risen by less than the rate of inflation - estimated at 3% quite recently - best to ask your IP.

I think it depends on IP to IP, mine wipped my 2.3% payrise away, stating that my food expenditure etc was set for the life of the IVA, its only about £24 a month the payrise that is, would of been nice to of kept some of it.

Mine is left to the annual review, they didn't take any of it as things had gone up and I even got to keep back pay.

Thanks for the fab responses guys. I think I will send a copy of my payslip through along with an email to my IVA account manager next month and ask them the question. I suppose even if it follows the 10% & 50/50 rule, being able to keep something will be a massive help.

I would anticipate that you may be required to increase your monthly payments by 50% of any increase in your disposable income - ie after taking account of increased expenditure as well as increased income - but check with your own IP to be sure.

This should be covered within your IVA proposal - so that may be worth digging out to check as well.