Wages/commission advice

[honey321]

Hi all
With PAYE employees does anyone pay them 60/40 split ...or minimum wage whatever highest....... was thinking of this way to increase motivation and obviously the ones that work harder get more...

 

[ColourGirly]

Employed staff are entitled to benefits such as paid holiday. If you do commission only I can't see how you could pay someone holiday pay.

Normally it's basic plus commission. So for example you pay NMW plus 30% over their basic.

 

[honey321]

Thank you for your reply I do realise that holidays still would be paid for but those weeks was thinking just minimum wage for holidays etc...but the rest of the time they would be better off knowing that they would receive 40% of what they take and therefore be more motivated

 

[LAPirate]

I'm fairly certain that staff with a variable income are entitled to the average of the last 12 weeks as holiday pay.. You would definitely need to check on that..

 

[ColourGirly]

Thank you for your reply I do realise that holidays still would be paid for but those weeks was thinking just minimum wage for holidays etc...but the rest of the time they would be better off knowing that they would receive 40% of what they take and therefore be more motivated

You would have to look at other areas. Are you dictating hours? Who's paying their tax?

Say you pay £1000 a month on NMW, if they took £4000 in services. You deduct the basic wage ( or higher as a 'target').

So then you could give say 10-30% commission.

Most employers would incentivise in this way plus retail commission.

 

[Cheshire_Gal]

All our therapists are PAYE and we pay NMW + comm. No issues

 

[Lola999]

Hi guys, I would also like to do a basic minimum wage plus commission but I already pay my therapists well over the minimum wage.
I'm expecting the structure will actually make them more money but I guess I can't put wages down can I?

 

[daydreams01]

Hi guys, I would also like to do a basic minimum wage plus commission but I already pay my therapists well over the minimum wage.
I'm expecting the structure will actually make them more money but I guess I can't put wages down can I?

Maybe give them the option to stay as they are or join a commission structure where they can have the potential to earn more and any new staff automatically go on the new pay scheme. Bear in mind NMW goes up again in October so you may want to base their basic on the oct rates