HELP! - With working out salary please!!

General information or questions about working in Crete.
Jim-aki & Cat
Posts: 11
Joined: Tue Feb 17, 2009 1:06 pm

HELP! - With working out salary please!!

Postby Jim-aki & Cat » Wed May 05, 2010 7:32 am

Ok I've got a part time job who are paying me 600E per month for 30hrs work a week Plus IKA. they need to reduce my hours, they have suggested to 20hrs per week for 400E per month. I am sure that they mentioned it was 5e per hour. I When I worked it out I worked it out as 4.60 e per hour, so my questions are:

1. do they work it out over 13 months rather than 12, ( as I did have an easter bonus) (if thats the case it does work out at 5 e per hour)

2. How much IKA would they be paying on top of the 600e and the 400e, so how much are they paying in total for me

3. their rate is 7.50e per hour for freelance, but how do I work this out as a monthly figure? is it still over 13 months or just 12?

I am still registered as self employed in UK, and still do design work from the UK, so I am looking at the option of going on a freelance basis. I am trying to work out they best deal for both of us if they don't pay the IKA a and just pay me the freelance basis, and I pay my own tax through the UK, is this possible?

Unfortunately being a bit of a 'creative', sums go over my head a bit!! help! :D

Kilkis
Posts: 8773
Joined: Sat Apr 21, 2007 3:58 pm
Location: Near Chania

Postby Kilkis » Wed May 05, 2010 1:08 pm

1 Obviously, unless you somehow manage to work 13 months in each year, then you need to take the extra payment into account when calculating the hourly rate. Multiply monthly net pay by 13 to get annual net pay. Divide result by 52 to get weekly net pay. Divide result by weekly hours to get effective hourly rate.

2 Employee's IKA contribution is near enough 16 % of annual gross pay. Multiply net monthly pay by 13 to get net annual pay. Multiply result by .19 to get your IKA contribution, i.e. for 600 Euro per month your IKA contribution would be 1,482 Euro per year. For 400 Euro per month it would be 988 Euro.

I think the employer's contribution is 25 % of gross annual pay. Multiply net monthly pay by 13 to get net annual pay. Multiply result by .3 to get your employer's IKA contribution, i.e. for 600 Euro per month your employer's IKA contribution would be 2,340 Euro per year. For 400 Euro per month it would be 1,560 Euro per year.

Add the two sums together to get total IKA contribution.

3 I would have thought that for freelance you would issue an invoice for actual hours worked in each month?

I am not sure if you could get away with doing it as freelance work from the UK. I think you need professional advice on the legality and consequences of that.

Warwick

PS If you are wondering why the multipliers above are .19 and .30 when the rates are 16 % and 25 % it is because the percentage rates apply to gross pay while you are calculating from net pay.


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