Annualised Wages

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A helpful guide with common questions and answers to your annualised pay.

 

Other names for annualised pay:

Annualised wages can often be referred to as:

• Pro rata pay

• Equated pay

• All have the same meaning and are not to be confused with holiday pay or ‘shut downs’.

What is annualised wages?

Annualised wages are commonly used in schools and universities that have large periods of the year where they are not open and do not need to be cleaned. Having an annualised wage means you are paid in equal instalments every month or week, depending on your pay frequency. This ensures your wages are paid to you all year around including when the school / universty is closed.

 

How is my annualised pay calculated?

Your annualised wages are calculated as below:

 

Hours per week X wage per hour X weeks per year (including holiday entitlement) = yearly salary

 

Yearly salary divided by 12 months in the year will give you your basic contracted monthly wage.

 

Example: Sally works 10 hours per week at £10 per hour at a university open 43 weeks of the year. Her weekly wage would be £91.60 not £100.00.

 

The difference between these two figures is £8.40 and this amount is ‘banked’ during the working weeks and paid as her wages in the remaining 9 non-working weeks of year.

 

Overtime with annualised pay:

Annualised pay will only affect your contracted hours of work, if you work any additional hours as overtime they will be paid to you at the ‘actual’ rate of pay.

 

IE: Sally’s normal annualised pay is £200 per month; she covers 1 hour cleaning at £10 this will give her £210.00. The £10.00 overtime pay is not annualised.

 

Short-term Sickness and unpaid absence with annualised pay:

If you are off through sickness or unpaid absence, this is treated separately from your annualised pay and the absence will be deducted at the ‘actual’ rate of pay.

 

IE: Sally’s normal annualised pay is £200 per month; she is absent 1 hour cleaning at £10 this will give her £190.00. The £10.00 absence pay is not annualised.

 

Long-term sickness with annualised pay:

If you are off on long-term sick, this ‘overrides’ any annualised pay and will be paid as statutory sick pay if you qualify, or you will be sent a SSP1 form to claim statutory sick pay from the job centre (resulting in no pay from Glen Group).

 

If you are off while the school is closed, you will not receive your normal annualised wage. The statutory sick pay will be your only payments while off sick.

 

Holiday pay with annualised pay:

If you work at a school / college / university, you may not take any time off work in term time except in extenuating circumstances.

 

Your ‘holiday pay’ is pro-rated to how many days of the week you work and how many weeks in the year you work, this total is then added to your yearly salary.

 

This is then paid to you within your annualised wages in your equal payments throughout the year.

 

What happens when I leave?

If you leave before you have taken any ‘shut downs’, the banked wages you have paid into the annualisation will be calculated and this money will be paid back in your final pay.

 

HOWEVER:
If you have taken the ‘shut downs’ but not banked enough wages, the shortfall will be calculated and this money will be taken back from you in your final pay.