Reduction in hours - correct pay (3 days)?

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Plek Trum

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Hi all,
following from my last thread, I have been reduced to a three day week.

I get paid weekly by cheque so do not see my PRSI etc breakdown but believe my daily rate is 120euro per day.

My wages on a five day week were 524.42 NET.

Today my cheque was left for me for a three day week. I was paid 305euro.

I was hoping for a little more, does this seem correct? All help appreciated, thanks.
 
I appreciate that - working for relative, family business, accountant informs us all of our wages or any amendments. My employer is ill at the moment hence reduction in hours, they rang accountant for my total wage for 3 days and was given this figure. I don't want to go bringing it up just now with my employer (illness) but would you have any idea if it seems correct? Another colleague is on 330e for a three day week, I was hoping for around the same.
 
Just on dividing your current take home pay by 5 and multiplying by 3, that does look too low. Added to that, on €360 per week you would be below the Health Levy threshold.
If your previous gross pay was €120 per day, and you worked 5 days, to take home €524.42 your tax credits must have been 99.35.
Using the same tax credits, and a weekly gross of €360, I calculate your take home pay would be €343.38 ( more if tax refunds are permitted).
In one of those little twists, you would take home slightly more if your gross weekly pay was only €352, as no employee Prsi would be payable.
You should check your tax credits, and ask the accountant for pay slips (previous and current).
 
Thanks a mill Gervan - I will check my tax credits this evening (don't have my revenue PIN with me) and will post same back here in order to have it clarified. Every euro at the moment is important to me and while I appreciate the situation, the bills are still coming in! Thanks for your help.

By the way, whats the health levy threshold?
 
On an income up to €500 per week no health levy is payable.
Above this it is 4% on all income, (which can lead to a drop in take-home pay on incomes just above the 500 per week) then 5% on portion above €1443 per week.
 
Thanks Gervan. I have my tax cert for 2010:

Personal tax credit 1830
PAYE tax credit 1830
Rent tax credit 400
Gross tax credit: 4060
Net tax credit: 4060

Rate Band 1: 36400
taxable at 20%

Allocation of tax credits to employer:
Yearly 4060
Monthly 338.34
Weekly: 78.08
Rate band 20%

Tax rate bands:
Yearl 36400
Monthly 3033.34
Weekly 700

I really appreciate this before ringing the accountant in the morning. As before, 120 gross per day, 3 day week, but got paid 305euro.. correct?
 
Workings for 3 day week @ €120 per day:

Gross €360
income tax @ 20%: 72
less tax credits (78.08) refund €6.08
Health levy nil
Income levy 360 @2% -€7.20
Prsi (360-127) @4% -€9.32
take home pay €349.56

However, if you were paid €600 per week for the first 15 weeks, with tax credits of 78.08 per week your take home pay would have been €503.16, and you said you used to receive €524.42.
Perhaps your tax credits have changed since the start of the year? There may have been some overpayment which is now being corrected? That is why you should ask for payslips from the previous periods. You are entitled to a payslip which shows all deductions.
 
Garvan thanks so much, I have noted all the above and will show it clearly to my employer. Really appreciate your help!
 
Hhhmmm.. accountant informed me because I am in receipt of jobseekers benefit for 3 days a week, my weekly (3 day wage) will decrease. Reduction in tax credits = reduction in take home pay. Rang Revenue and apparently true! Gosh, in one hand and penalised with the other!

Do the figures seem accurate to you Gervan?
 
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