Level 1. Rough Costs for £25k Employee 

EMPLOYEE FINANCES

EMPLOYER COSTS

Level 2. Rough Cost for £50k Employee

EMPLOYEE FINANCES 

EMPLOYER COSTS

Level 3. Rough Costs for £75k Employee

EMPLOYEE FINANCES

EMPLOYER COSTS

Assuming that the worst case scenario is 2 days work per week at £450

Initially this would allow for a single £25k employee In quarter 1.

Depending on the level of work coming in this can increase to level 2 or 3

If 3 days @£450 then Level 2

If 5 days @£450 then level 3

The work levels would be reviewed every 3 months and new contract signed at the appropriate level based on Income.

For each employee, the remainder of the cash-pot would be saved in a separate account, and if appropriate to the contract, travel costs deducted. At the end of each 3 months a bonus would be paid to both employee and company based on the following:

50% kept for Sick/Holiday Leave, travel expenses or other changes i.e. drop in Days to a lower level.

Remaining 50% split between employee and company.

If working at a higher level during the 3 months a larger % given to employee as bonus.

Examples of bonus:

Level 2 PM

Earns £50k pro rata – net £2990.60 per month

Over 3 months with 3 days work savings are approx 250/week (£1350 earned – £1094.33=£255.67)

Total is approx £1000 every 4 weeks

Total over 3 months is £3000

£1500 retained for next 3 months

£1500 split as £750 bonus to employee + £750 to Company

Level 3 PM

Earns £75k pro rata – net £4199.09 per month

Over 3 months with 5 days work savings are approx £600/week (£2250 earned – £1641.44=£608.56)

Total is approx £2400 every 4 weeks

Total over 3 months is £7200

£3600 retained for next 3 months

£3600 split as £2000 bonus to employee + £1600 to Company

The retention of the extra is to allow for changes in working days to the detriment of the company whilst the employee continue to the end of the 3 month contract on full pro-rata PAYE