www.iva.co.uk

Hi,

When you receive an annual bonus, is the 10% you keep equivalent to 10% of your monthly take-home pay or is it 10% of your annual take-home pay?

Hope that question makes sense!

Reason for asking is my company does quarterly bonuses and I've always calculated the "keep" part as 10% of a month, not 10% of a quarter.

Thanks!

In our case it was of the month irrespective of what the extra covered. Three months backdated payrise was not based on 3 months but not 1 month.

It would be 10% of the nett monthly pay for that month only. You would keep more if you received this monthly instead of quarterly.

If your agreed take home was £1000 per month you keep £100 in the month the bonus was paid, regardless of how many months that bonus was for.

If you could get your employer to pay pro-rata monthly you would get to keep a lot more.

If you're lucky enough to be with Freeman Jones they allow 10% of yearly salary if it's a yearly bonus.

Ok thanks people, it's pretty much as I expected.

It just struck me that I might've been over-paying.

I've already asked my company to pay it monthly instead but they won't because it's a lot of extra admin.

Hi

Wouldn't it be nice if all companies had the same idea as FJ with regard to annual bonus, makes sense really
Why be penalised because you have an annual bonus rather than monthly ?

Regards

I do not believe that our firm has the discretion to use an annual figure for bonus calculation so we cannot do it. However I do know some people have their bonuses paid monthly but in arrears so Hubert this might be an option. Divide the bonus by twelve and ask your firm to up your wages accordingly for the next twelve months and this would work in your favour.

Nice idea I just am reluctant to ask as it sounds odd and I don't want to tell them about the IVA.

It does sound odd but worth it for you if it can be done.