Lose overtime for fixed salary.

[TillyD]

Hi,

My sister has worked for a company for 6 years and earned 20k gross on overtime every year. Now the company want to put her on a salary and no overtime paid. They said they would give her a pay rise to make up for the overtime but didn’t say how much of one they’d give. She will still be expected to work the same amount of hours but just not paid overtime for it.

She earns 50k and 20k on OT. How much of a pay rise should she expect?

Thanks in advance.

Tilly.

 

[Mpsox]

If she is working a standard 9-5, this is a 7 hour working day, = 1820 hours a year which means her hourly rate is €27.47 and at a standard one and a half times rate for overtime, this means her OT rate is €41.2
Therefore is she earns €20k per annum OT, she is working approx 9-10 hours overtime per week
OT should not be compulsary in any job, and I have known people who became financially dependent on it and struggled when it was stopped. Therefore by increasing her salary she gets more certainty for the future, it may improve what her employers pay into her pension(if anything) and may help in terms of mortgage applications etc going forward. I'd suggest a minimum of €10k to split the difference and show willing.
However if she is at her desk until 7pm every night, I'd also suggest it's time to get the CV out. Life is too short

 

[TillyD]

Thanks Mpsox,

She does a lot of her OT from home. Her boss told her this is what they were looking at but never said what kind of payrise it would be. She does depend on her overtime now as she's been getting it for the last 5 years and she knows the company will always want her to do the extra hours. She was hoping to get a least 15k. I don't think she thought about the pension. I must mention that to her.

Thanks again... Tilly.