Xmas Bonus

[4kidsnocash]

hi, can some one answer this for me? i am expecting a bonus in march do not know how much yet it depends on companys profit, however my wage this month and last month was less than on my i &e due to overtime being less, do i have to pay 50% over to ip or do they work it out over the last three months average? my wages are never the same from month to month due to overtime but and it is difficult to know how to work this out,

[Michael Peoples]

Check with your IP but if they have used a figure for your wages which includes overtime that is not guaranteed I see no reason why you cannot offset momney from your bonus. It is highly likely that you have fallen behind on some things such as utilities or contingency which will need replaced.

[4kidsnocash]

thanks for quick reply, yes electricity is behind but i have arranged extra in dd to cover this and there is no contingency at all at the moment last couple of months battery on car died rear wiper broke had to replace the arm 2 punctures in tyres and all three kids grown out of thier shoes and at 40 pound a time its not cheap
, ip not really clear but he said to wait for my review in june and they will look at my wages from last 6 months and use an average so just have to wait and see

[MelanieGiles]

Why is your IP including overtime as an element of your basic salary in the first place?

[4kidsnocash]

hi mel yes my overtime was included

[4kidsnocash]

hi mel yes my overtime was included i did quite a lot of o/t before iva and they just worked it out from there guess i would have had to pay a lot more over if they just used my basic?

[Michael Peoples]

Possibly not. You are normally allowed to keep any overtime that does not increase your net take home pay by more than 10%.
It is possible your IVA would have been a lot lower and you could have had a much better standard of living had the IP not chosen to include in their calculations.

[4kidsnocash]

my overtime gave me approx 200 a month extra take home pay so it would have been higher than the 10% by 150 pound

[Michael Peoples]

If that is the case you would only have had to pay over half this excess but perhaps without using this money you would not have had a surplus to fund an IVA. I am only guessing but it does show the dangers of using non guaranteed income in IVAs.