Before Christmas break last year, a colleague and I were just talking about how careful should we be on our extra hours as earning £50,000 per tax year in the UK would qualify one to be taxed on a higher rate at 40%. Confidently, I mentioned that I wouldn't reach that earning for the tax year as my annual salary is only £24,214 and even if I max out 20 hours of extra work every week, my total annual salary would still be under £50,000 before tax. She agreed but was astound to know that my annual pay is only £24,214 when it should have been £26,220. Yup, a difference of £2,006 since the start of the tax year, April 2019. She quipped that I should have my pay reviewed the soonest as it would take several months to be rectified as this happened to her and another colleague.
When I heard the news, I genuinely felt that I have let myself down for not noticing the err on my payslip. I budget down to the last penny, yet, ironically, I failed to notice that I was on the wrong pay scale. Although I was disappointed of myself, I knew, there was no point in crying over spoilt milk and should just focus my energy on what I could control moving forward.
So, what exactly I could control?
My employer's payroll is a third party company and since that time was a holiday, there was no way I could call them to explain my dispute. I could, however, create an escalation ticket via our intranet portal; then compose a draft email to be sent immediately to my line manager after the New Year. That's exactly what I did.
The timeline - I created the ticket on December 24, received a reply on the 30th. I sent my drafted email when I got back to work on the 2nd of January, received a reply from payroll on the 6th (also apologising for the delayed correspondence as the latter have just returned from Leave.) On the 24th, shockingly, my payslip has been updated with the correct pay and arrears for the 9 months I paid wrongly. Issue resolved. Happy days!
What a way to earn a little under £4000 for a month (Php265000). I may never get this again so pardon me for my unmatched elation (although, I have plans on how to boost my income in the next 1-3 years).
What happened to the extra income?
My frugal mentality whispered that I should put 55% of that to my Vanguard and Trading212 accounts; and I delivered. I didn't treat myself to a nice meal from a fancy restaurant nor bought new things because #IDeserveIt. No, not on my watch. I was happy to invest that extra money, that is all that matter.
I am thankful for that colleague of mine for challenging me to correct my pay and for my employer for the quick, hassle-free rectification of my dispute.
Now, I have to live off on the remaining 45% of that income for the month of February. My heart is full.
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