Hi there,
Is it normal for your net pay to be different each month despite having the same gross wage?
I was working in one company until the end of May 2024 and now work in a different company. I have the same gross amount each month but each month I've a different net pay amount. In all my previous jobs, I've always received the same net pay each pay period so I'm just confused. I've 2 tax credits (the single tax credit and employee tax credit - there's been no change to my tax credits).
I queried it with my payroll department who said, "TAX & USC are cumulative hence why the difference - This means that each pay day, all earnings and all tax credits from 1 January of that year are accumulated and deducted accordingly. Because of your previous employment figures and wage changes monthly – Your deductions will fluctuate hence why they are calculated on a cumulative basis."
Not sure why she said, "wage changes monthly" as my gross wage is the same each month. I still don't really get from her explanation why my net pay is different. Does that mean I can expect all future payments to have a different net pay? If so, can I change this as I would prefer to know how much income I have a month.
Thanks.
Is it normal for your net pay to be different each month despite having the same gross wage?
I was working in one company until the end of May 2024 and now work in a different company. I have the same gross amount each month but each month I've a different net pay amount. In all my previous jobs, I've always received the same net pay each pay period so I'm just confused. I've 2 tax credits (the single tax credit and employee tax credit - there's been no change to my tax credits).
I queried it with my payroll department who said, "TAX & USC are cumulative hence why the difference - This means that each pay day, all earnings and all tax credits from 1 January of that year are accumulated and deducted accordingly. Because of your previous employment figures and wage changes monthly – Your deductions will fluctuate hence why they are calculated on a cumulative basis."
Not sure why she said, "wage changes monthly" as my gross wage is the same each month. I still don't really get from her explanation why my net pay is different. Does that mean I can expect all future payments to have a different net pay? If so, can I change this as I would prefer to know how much income I have a month.
Thanks.