Understanding your pay
Payday is the last banking day of the month for all Lancashire County Council employees.
Payslips are produced monthly and can generally be viewed 2 or 3 days before pay date via Oracle Fusion.
We calculate your pay based on the number of hours your work per week or the number of weeks you work per year.
Full Time
If your annual salary is £24,000 then your full monthly salary before tax etc, would be £2,000.
Part Time
If you work 22.50 hours per week we would work out your annual salary the following way:
22.50/37(full time hours) x full time annual salary £24,000 = £14,594.59 divide by the number of months in the year (12) = £1216.22 gross monthly pay before any deductions i.e. tax.
Less than 52 weeks worked, e.g. term time only
If you work the above hours for 38 weeks (term time), multiply by 43.89* and divide by 52.143 = £1,023.72
*Please note that the number of weeks payable is determined by weeks worked and annual leave entitlement and a simple calculation is shown below.
A x C = Holiday pay entitlement in weeks + A = Weeks payable
B
A | = | Working weeks e.g. 38 |
B | = | 52.143 (weeks in a year) – 7 or 8.2 (comes from C) = 45.143 or 43.94 |
C | = | 25 days + 10 days Bank Holiday entitlement = 35 days divided by 5 (no. of days in a working week) = 7 or 31 days + 10 days Bank Holiday entitlement = 41 days divided by 5 (no. of days in a working week) =8. |
You may also have an annualised hours contract.
You started (or left) part way through a month
We calculate your pay based on the date you started work and the number of days in the month.
For example, if your annual salary is £24,000 then your full monthly salary before tax etc. would be £2,000.
If you started work on 15th of January then you would only be due seventeen days pay for the period 15th -31st January.
£2,000 divided by 31 days in January multiplied by 17 days in employment = £1,096.77.
The same applies if you leave part way through a month, i.e. the date you finished divided by the number of days in the month.
Please note that your salary is NOT calculated on the number of hours you work multiplied by your hourly rate.
Absence without pay (LWOP)
There are several reasons why a deduction of leave without pay may be made from your salary.
Deductions are made based on the number of days in the month for the following (in the same way that part months are paid shown above)
Occupational maternity/paternity/adoption pay has ended
Sickness entitlement to full and half pay has ended
Deductions for absences associated with leave are deducted in hours
Leave for personal reasons e.g. extended holiday that is granted without pay.
If you have more than one role
You will see two entries when you work in a different role and there is a different rate of pay attached to it, for example 10 hours at £15.00 an hour and your normal rate is 12.00 you would see 10 @15.00 = £150.00, less 10 @12 = -£120.00".
These entries and subsequent appearance on payslips are based on what is entered against employees' pay record. This can be employee/manager self service or in some cases loaded from a submitted spreadsheet.
There is a personal responsibility for an employee to know what they would expect to be paid for work, particularly when it is duties other than their normal one.
Retro – appears often and simply means retroactive. It refers to pay processed in the current month that has elements that are earned in a previous period. For example, if I worked overtime at the end of a month and it was only claimed/processed in the following month because the deadline had passed it appears on the payslip as shown below. Sickness absences are often shown this way as well as they are not always closed in a timely fashion by managers.
Pay As You Earn (PAYE)
If you don't provide a P45 or a completed HMRC Starter checklist when you start work, you will pay tax at 20% on all of your taxable earnings (and 40% or 45% on higher earnings).
Tax codes
Your tax code, which provides details of your tax free allowance for the year, is calculated by HM Revenue & Customs (HMRC) and electronically notified to Payroll. You will also receive a copy of the notice by post. In the event of a query, you should ring HMRC on 0300 200 3300, quoting your National Insurance number and LCC PAYE reference which is 083/LCC.
HMRC will not discuss your tax code with your employer
More information about tax codes.
National Insurance (NI)
If your earnings exceed the Primary Earnings Threshold, you'll pay National Insurance Contributions (NICs) at a rate of 12%, from the age of 16 until you reach State Pension age. Deductions are made at 2% of earnings above the Upper Earnings Limit
Calculate your state pension age
If you stay in employment after State Pension age you will cease to pay NI contributions although your employer will continue to do so on your behalf. You may need to provide proof of age for example passport or birth certificate.
More information about National Insurance.
If an increment is due it is usually paid in April. (Lancashire Pay Spine)
If your start date/promotion is between October and March then the increment is 6 months after that date.
You will not receive an increment if:
you are at the top of your grade
there is a bar on your grade
you have not been in that post for six months
AskHR will be able to tell you if an increment is due.
P45
You will be only issued with your P45 when we have paid your final salary, which you should then use for any future employer or claim for benefits. Your P45 will be posted to you at the home address held within Oracle. Leavers do not receive a P60.
P60
If you are in employment with Lancashire County Council on 5th April, your P60 will be available on Oracle Self Service by no later than 31st May. You can download a copy from Oracle (as well as payslips) for up to 2 months after leaving employment.
P11D
You will only get a P11D if you have received taxable expenses and benefits and you have earned over £8500.
Your P11D will be available on Oracle Self Service no later than 6 July.
Contributions
The information below refers to the Local Government Pension Scheme. For other schemes please see the links below.
You pay pensions contributions on all your pensionable pay at a rate determined by your contractual pensionable pay.
You pay contributions at the applicable rate on all pensionable pay received in respect of that job (or at half that rate if you are in the 50/50 section).
If you are a casual employee your contribution rate will be based on the pensionable pay you receive in a particular month multiplied by 12. Your pension contribution could change each month.
For further information, for example additional voluntary contributions, retirement benefits etc. see the link below.
Local Pensions Partnership Administration (LPPA) - online accounts can be accessed on PensionPoint