How to manage my new pay rise

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Post by snailmail » Mon Apr 16, 2018 10:53 pm
As I've mentioned in my other thread, I'm taking a new job just after my IVA has started. While I was considering the new job I explicitly asked the IP how any pay raise would be calculated. I've never spoken to my IP directly and her minion explained to me that it would be calculated on the 10/50/50 rule. I've read the contract and I know this is incorrect. It is a straight 50/50 on pay rise.

BUT - I have it in 3 emails, in writing. 10/50/50. That is the first problem.

Here is the real kicker. The IP trainee insisted that I inform them straight away of any pay raise so that they could start deducting the share for the IVA, or I will end up owing my creditors a year's worth of extra income. But the contract says, quote:

Annual Reviews
I propose that my income and expenditure will be reviewed annually by my Supervisor who will incorporate this into her annual report to creditors. In order for my Supervisor to carry out the review, I undertake to provide a copy of my income tax return P60 plus copies of my payslips for the three months immediately prior to the review. If my net surplus income does increase, I agree that my contributions will be increased by 50% of the increase in my net surplus after taking into account my costs of living, any such increase to commence in the month following the review. This review will not include any bonuses, overtime or commission payments in respect of which I have already paid a percentage to my Supervisor.

This clearly says that any net surplus income will be calculated at review - not in real time.

I've seen Foggy mention in other threads that 'some will try, incorrectly, to take the increase right away'. So what do I do? I can tell them straight away and tell them that they told me times that it was a 10/50/50 rule. I can tell them, or I can wait and a year and enjoy my salary increase (maybe stash some away in case it comes back to bite me?)

The contract says what the contract says but I'm not a lawyer and english is not even my first language!


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Post by luluj » Tue Apr 17, 2018 4:35 am
I would be insisting on an IP conversation not the caseworker.

I would also follow up all conversations in writing.

It clearly states payrises are dealt with at annual reviews not immediately so I would hold onto that point and insist on it.
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Post by Foggy » Tue Apr 17, 2018 7:01 am
You have to inform them right away -- but the increase, as you rightly say, does not come into effect until the month following the review. In the meantime al of the increase is yours. I would insist on speaking to the real IP and suggest the trainee carries on trainee because he or she isn't quite there yet !
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Post by MerlinL14 » Tue Apr 17, 2018 8:29 am
I had a substantial pay increase in year 2 of my IVA when I started a new job. The increase was over £400 a month so not a small sum. I made the call to GT in the resolute belief that I would loose the lot come my next payment. Seems I was a bit premature in my negative belief, I spoke to a well mannered and well informed case worker who recorded all the increase and basically told me to have a good time with it and get 'stuff' we needed and it will be addressed in the next review, she even emailed me the transcript of the conversation to assure me that the matter would not be an issue. Thing was I was 9 months away from another annual review. I think sometimes we all get to hear the horror stories of some of the issues we have to deal with during the IVA and not too many about the good news stories. I hope mine can settle you a bit to feeling it may not be all bad.
Last Payment made 04/12/14. Completion Certificate 25/7/15. IVA company GT. No Issues
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