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Topic: Salary Calculations- Can someone check this for me?  (Read 2117 times)

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Salary Calculations- Can someone check this for me?
« on: January 31, 2017, 12:24:29 PM »
Applying under Cat A
Settlement Visa- Marriage

All amounts are pre-tax.

£1248 is the lowest monthly salary over the last 6 months. (Pay rise was 5 months ago but can't be included.)

£1248x6= £14,976

Total of overtime and bonuses over the last 6 months

£2028.56/6= £338.09x12= £4057.08 (Edited to correct mistyped number)

$14,976+£4057.08= £19,033.08

I never expected for him to make the financial minimum on his own so I've had cash savings set up for the past 7 months. But if I understand this correctly, and I've calculated everything correctly, I won't need to apply under cash savings as well.

I'm just looking for verification that I've done this correctly since I'm submitting my application on Thursday.

Thank you.

Tami
« Last Edit: January 31, 2017, 12:44:54 PM by nctami72 »


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Re: Salary Calculations- Can someone check this for me?
« Reply #1 on: January 31, 2017, 12:35:33 PM »
I get:

£1248 x 12= £14,976

£2058.56/6= £343.09 (which is slightly higher)
£343.09  x 12 = £4117.12

£14,976+£4117.12= £19,093.12

I never expected for him to make the financial minimum on his own so I've had cash savings set up for the past 7 months. But if I understand this correctly, and I've calculated everything correctly, I won't need to apply under cash savings as well.

Yes, looks like the previous 6 months of earnings requirement is met without cash savings.

What is his income after the payrise - is it above £18,600?

If it's not above £18,600, is his overtime guaranteed in writing in the employer letter, so that his total future income is at least £18,600?


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Re: Salary Calculations- Can someone check this for me?
« Reply #2 on: January 31, 2017, 12:43:55 PM »
Sorry, should have been £2028.56, not £2058.56. I will edit it to reflect the correct amount.

His employment letter does not mention overtime. It gives his new salary as £16120 (Basic Hourly Rate £7.75) and on the bottom of the letter it is written

Please note that the above is the standard information provided by Company Name for all references and therefore no further information will be provided.



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Re: Salary Calculations- Can someone check this for me?
« Reply #3 on: January 31, 2017, 12:58:57 PM »
The letter is a concern.  To use overtime, the letter (or contract) needs to state the overtime will continue.  Will his manager write the letter instead?


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Re: Salary Calculations- Can someone check this for me?
« Reply #4 on: January 31, 2017, 01:01:26 PM »
His manager doesn't have the authority to write such a letter. Everything has to go through HR. And this is the only letter they can provide. It is a major corporation.

The letter is a concern.  To use overtime, the letter (or contract) needs to state the overtime will continue.  Will his manager write the letter instead?


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Re: Salary Calculations- Can someone check this for me?
« Reply #5 on: January 31, 2017, 02:50:23 PM »
His manager doesn't have the authority to write such a letter. Everything has to go through HR. And this is the only letter they can provide. It is a major corporation.

With the current letter, he does not qualify for the visa, and it will be refused... because they cannot consider future overtime and they will take his future annual salary as only £16,120. The overtime can only be used if it is GUARANTEED in writing to continue.

However, is he salaried at £16,120 or is he non-salaried with an hourly rate of £7.75? i.e. does his contract say a fixed £16,120 per year, or £7.75 per hour?

If he is non-salaried (on an hourly rate), then they calculate the income differently and use the average earnings over the 6 months to work out his annual income, not the lowest payslip... in which case, he might be alright.


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Re: Salary Calculations- Can someone check this for me?
« Reply #6 on: January 31, 2017, 03:00:37 PM »
Ok, the letter says exactly.

Employment Status: Permanent

Weekly Hours: 40

Basic Hourly Rate £7.75 (£16120.00 ANNUAL)

I guess I just need to know what amount we can use and which Cat to file under then. And I have more than enough in the appropriate savings account to meet the cash savings if I need to use it. That was the route I was expecting to go in the first place.

« Last Edit: January 31, 2017, 03:08:19 PM by nctami72 »


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Re: Salary Calculations- Can someone check this for me?
« Reply #7 on: January 31, 2017, 03:50:56 PM »
Ok, I was just reviewing the Financial Requirements again and I'm trying to wrap my head around calculcating his wages. I thought I had a firm grip on what I was doing but I got slighlty confused with the verbiage "salary". (He just refers to his wages as his salary and that got stuck into my mind)

Besides the overtime, he also earns commission based sales bonuses and incentives. So his payslip will list the following:

Salary: Amount
Basic OT: Amount
O/T x2.0: Amount
Bonus: Amount
Incentives: Amount

Then it will give a pre-tax total.

Am I using the pre-tax total of all monies earned during that pay period (monthly) /6*12 or do I calculate it some other way?

Thank you so much.

Tami


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Re: Salary Calculations- Can someone check this for me?
« Reply #8 on: January 31, 2017, 06:06:03 PM »
A salaried employee will have a fixed annual salary which will be paid each year regardless of number of hours worked. They are not paid by the hour.

A non-salaried employee will be on an hourly wage but won't have a fixed annual salary. They may work different hours each week and will be paid according to number of hours worked.

If he is salaried (fixed annual salary), he can't meet the requirements unless his employer can guarantee minimum annual overtime earnings of £2,480 every single year (to make it up to £18,600 per year).

If he is non-salaried (paid by the hour), then they will take the average total amount earned over the last 6 months and use it to work out his annual salary.

In this case, you add up ALL his earnings over the 6 months (including overtime), divide by 6 and multiply by 12. If this amount is at least £18,600, you meet the requirements.

If he is non-salaried, the employer letter should state this and only give the hourly wage (plus maybe also the total amount earned over the last 6 months), not an annual salary.


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Re: Salary Calculations- Can someone check this for me?
« Reply #9 on: January 31, 2017, 06:17:12 PM »
Ok, his payslips will give some more evidence that he is paid hourly.

On the salary line, it lists the amount he was paid (£1343.33) and then his hourly rate (£7.75).

If he misses work, and can't take paid leave, his missed time is deducted from his pay. He is definitely paid hourly.

Nothing can be done to change how his employment letter is worded. It is a standard form and they will not alter it.



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Re: Salary Calculations- Can someone check this for me?
« Reply #10 on: January 31, 2017, 06:29:45 PM »
Nothing can be done to change how his employment letter is worded. It is a standard form and they will not alter it.

Does the employer letter contain ALL of the following:
- length of employment
- current salary/wage
- length of time earning current salary/wage
- type of employment (salaried/non-salaried, full/part-time, permanent/temporary etc.)

If it doesn't address all of these points, the visa may be refused.

I've seen some people here on the forum draft the employer letter themselves and then have their employer sign it, so that they can make sure it meets all the visa requirements


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Re: Salary Calculations- Can someone check this for me?
« Reply #11 on: January 31, 2017, 06:54:45 PM »
This is what the employment letter contains.

Job Title
Site
Dates of Employment
Employment Status: Permanent
Weekly Hours: 40
Basic Hourly Rate: £7.75 (£16120.00 Annual)

Looking at his payslip from his old pay rate, it definitely shows it was the hourly rate that was increased.

I don't know why pay in the UK has to be so confusing.

I think we will be OK filing under Cat A, and calculate it under non salaried worker. There is more than enough evidence on his payslips to support that he is an hourly worker. I will make sure to include this in a brief statement on how we calculated his financial requirements. Or it is a $3000 gamble. I'm going to go have my nervous breakdown now.


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Re: Salary Calculations- Can someone check this for me?
« Reply #12 on: January 31, 2017, 07:09:28 PM »
I think we will be OK filing under Cat A, and calculate it under non salaried worker. There is more than enough evidence on his payslips to support that he is an hourly worker. I will make sure to include this in a brief statement on how we calculated his financial requirements. Or it is a $3000 gamble. I'm going to go have my nervous breakdown now.

I would have him state in his sponsor letter that he is using non-salaried income, and also include a calculation showing he meets the requirement.

Just be aware that the Appendix 2 form only actually mentions salaried employment, and not non-salaried... no idea why not, but it implies that non-salaried employment can't be used - which isn't true.

So, when you're filling out the form, even though it says 'salaried', you should assume it means non-salaried too... and I would also emphasise that it's NON-salaried on the form as well, and clearly state the total earnings and how you calculated the annual income.


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Re: Salary Calculations- Can someone check this for me?
« Reply #13 on: January 31, 2017, 07:31:31 PM »
He is trying to get some clarification from work on if they classify him as salaried or non-salaried. He's just on holiday now so he has to try and get his manager on the phone tomorrow. I told him as long as he has an answer for me by the time I get home on Thursday then I will know how to proceed.

I have major surgery planned on the following Thursday so I'm trying to get my application turned in the moment I get home so I have enough time to book my biometrics appointment before my surgery, plus get all of my bank statements stamped, if I end up needing them.

We will be OK either way as I do have more than enough cash savings but I also don't want to make this more complicated than it has to be.

I am trying to wrap my head around the meaning of salaried employee here because there seems to be some huge differences than in the US, same thing for hourly employee.

He did say if he goes over his 8 hours a day, by more than 15 minutes, then he is paid an additional amount at the hourly rate. That doesn't seem to be how a salaried employee would be paid, in my mind anyway.


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Re: Salary Calculations- Can someone check this for me?
« Reply #14 on: January 31, 2017, 07:41:14 PM »
Or maybe not...

I just found this on the Uk.gov website.

https://www.gov.uk/minimum-wage-different-types-work/paid-an-annual-salary

This sounds more like how he gets paid.

So then, if he is salaried, we definitely can't use any of the overtime and bonuses because the employment letter doesn't state he is entitled to work overtime and earn bonuses?


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