Hi,

I'd be grateful if someone could provide some analysis on the following scenario:

If someone earns £30k/year in a role where they receive 32 days leave a year and work a 36 hour week, what would their effective pay rise be if they were promoted to a role that pays £33k/year with 30 days leave and a 37 hour week?

Also what would the new salary have to be in order to make it an effective 10% pay rise?

Thanks in advance,

Snook

36 hours per week = 7.2 hours per day
365 days of which you work 5/7 = 260.714; 260.714 - 32 days leave = 228.714 days you work a year. each day is 7.2 hours, so 228.714 * 7.2 = 1646.74 hours a year. you get 30k pounds for that much, so 30k/1646.74 = 18.23 pounds per hour.

37 hpw = 7.4 hpd. 260.714 - 30 = 230.714 wd. 230.714 * 7.4 = 1707.28 hpy. 33k/1707.28 = 19.33 pounds per hour.

19.33/18.23 = 1.06, so it's a 6% pay rise. 18.23 * 1.1 = 20.05. 20.05 per hour is a ten percent pay rise from 18.23. So working 1707.28 hours per year, the second scenario guy would have to make 1707.28 * 20.05 = 34,236.09 pounds to be making ten percent more per hour than the first scenario.

I probably messed up somewhere, but I'm not spending more than five minutes on this.

Thanks somigosaden, seems logical to me.