Salary

1
Salary

• Monthly Pay
• Vs.
• Bi-weekly Pay
• Is there a difference?

2
Salaried Employees

• Most Locals specify a monthly salary for a first
  class fire fighter.
• All other ranks are indexed from this rate.

3
Determining Pay

• The monthly salary is used to determine
• First
• The bi weekly pay
• Then
• The hourly rate

Monthly Salary 12 26.089
Bi-weekly pay Number of hours worked
4
Why 26.089 ?

• 365 days per year.
• 366 days each leap year.
• Leap year every 4 years.

365 365 365 366 1461 1461 / 4 365.25
5
Why 26.089 ?

• 365.25 average days per year.
• 14 days per bi-weekly pay period.

365.25 14
26.089285714
26.089
6
26.089

• So we then have 26.089, 14 day pay periods per
  year on average.
• 14 days 26 pays 364 days paid in 26 pays.
• On average then, 1.25 days each year missing.

7
1.25 days missing?

• These days arent really missing
• they are just unaccounted for until the next
  pay.
• Each non-leap year we are short 1/4 days pay.

8
Basis for Comparison

• We are paid monthly
• Days / nights worked do not matter.
• Number of days, including days off, count towards
  bi-weekly and monthly salary calculations.

9
Paid days per Month

• 365.25 days per year.
• 365.25 / 12 30.4375 days / mo.
• 28, 29, 30, or 31 days / month.

10
Days, Months, Year
11
Days, Months, Year
Aggregate
Plus / Minus
12
Days, Months, Year- 1.625
13
Non-Leap Year

• Short .25 of a day at end of year.

14
Days, Months, Year
15
Days, Months, Year- 0.625
16
Leap Year

• Plus .75 of a day at the end of the year.

17
Average Works

• .75 leap year
• - .25 non leap year 3
• Net 0.

18
Math Comparison

• Monthly
• (X 12) 12 X

• Bi-Weekly
• (X12 / 26.089)/14)365.25
• X 12 365.25
• 26.089 14
• X 12 26.089285
• 26.089
• X 12 12 X

19
Are they equal?

• It depends
• Must be paid for each day employed whether
  working or not.
• Must retire December 31 of a leap year.

20
Why?

• Formulas are based on 365.25 days in a year
  which there are not.
• As shown previously, the early months of the year
  skew the salary so that you are short until
  December, taking a hire date of January.

21
How do we calculate how short we are?

• First, we need to agree that a daily rate is
  appropriate.
• Next, we must calculate the daily rate for the
  first (normally partial) month worked.

22
How do we calculate how short we are?

• Take the daily rate times the number of days in
  the first month after, and including, the start
  date .
• Next, determine the number of whole months worked
  up to the retirement date the retirement date
  should be the last day of the month.

23
How do we calculate how short we are?

• Calculate the total number of days from the start
  date to the retirement date. Use this figure for
  determining the bi-weekly amount paid - X.
• Use the number of whole months worked in the
  period for determining the monthly amount to be
  paid - Y.

24
How do we calculate how short we are?

• Use your current salary for the
  calculation.
• Rate 12 / 14 X Amount Paid
• 26.089
• ( Rate Y ) Rate 12 days in
  Amount
• 365.25 first
  month Paid