I have completed 4 years of a 6 year IVA and so far so good, until today! I received a letter from my supervisor telling me that my payments have increased this year by £91.85, as you can imagine this amount is a bit of a shock to me. I called the supervisor and asked for the reason. He explained that he had worked out my average wage for the previous 12 months and worked my payments out using this average. My concern regarding this it that during the previous 12 months I worked my backside off doing overtime, this obviously pushed up my average wage. However overtime is not guaranteed. Also, out of that overtime I have followed the 10% 50/50 rule, so the average is not a reflection of my average take home pay.
I have had no problems the first 3 years of the IVA, but now have a new supervisor who seems keen to take more from me regardless of if I can afford to pay it.
Is it normal for overtime pay to be included in working out average pay, even when this overtime is not guaranteed?
I don't agree with using an average of any overtime, the 50/50 rule should be used to pick up any extra payments. Hard to work overtime if you are not going to benefit directly
Go back and argue your case
Im only contracted to do 37.5 hrs every week but always do over 50+ hrs every week for the last 10 years!
Our IVA company takes the average of the last 12 weeks pay before the annual review to see if they can get any more out of us.
Last review time i had worked a lot more hrs to get some extra money but then they increased our payments up another £90 per month!!
We were due a wage increase in October 2013 but its not been agreed yet which will mean a fair bit of back pay, but they will be taking their 50% of that to!!!!!
Next review i will make sure the average will be lower before the review than it wont be so hard to make the higher payments.
Im sorry but I beg to differ. My hubbies overtime was taken in to account when working out our payments. We didn't do the 10% 50/50 but when we did our review every year they took hubbies pay slips and worked out his annual pay. When we first started he had to sign a letter saying that he would get on average 17 hours overtime every 2 weeks.That is how our payments were worked out.
The trouble with signing a form to say your doing overtime is that if you take holidays off work or off sick for a month, then the overtime is not getting done. Would the I.P then reduce the payments or (as in most cases) cap the reduced payments i.e without the overtime - onto the end of the IVA? When its not your basic wage. I can see problems doing it this way.
