Accounting Question

2 watchers
Oct 2017
4:56pm, 3 Oct 2017
9,584 posts
  • 0
Torry Quine
I've been left holding the reins until our new accountant arrives next month. Not a problem for most things but I'm to implement a rate increase for one client according to the following formula, as taken from the contract, but I'm just not following it. Any others I've had to deal with have been a straight %. Can anyone help?

The formula to be applied to all elements of the rate shall be:



Where RN = New Element of Day Rate After Due Escalation

RO = Existing Element of Day Rate Prior to Due Escalation

I NEW = New Indices applicable April 2017 and annually thereafter as appropriate
I OLD = Old Indices applicable April 2016 and annually thereafter as appropriate

The index in calculating these revisions will be in the Monthly Digest of Statistics published by the Central Statistical Office:

EARN01 Average Weekly Earnings (Whole Economy)
Oct 2017
6:18pm, 3 Oct 2017
44 posts
  • 0
Hi Torry .. which bit are you asking about?
The EARN01 stats are available at

And I assume the formual should be RN = RO x INEW / IOLD ?
But take care - and maybe check - because my reading of the stats file is that INEW is lower than IOLD and therefore would trigger a rate reduction ....

Is there any clause in the contract to cover a reduction?
There are also multiple index rates to choose from (totaly pay, regular pay, etc) and cuts by sector (whole economy, private, public, financial services, mfg, contruction etc) - is there any better definition of the index to use?

Good luck :-)
Oct 2017
6:34pm, 3 Oct 2017
9,585 posts
  • 0
Torry Quine
Yes the formula is as you say.
I'm reading AWE Regular Pay, Whole Economy from sheet 3 of that download, which shows April 16 at 464 and April 17 at 472.

Whole Economy is what's written in the contract.

The link I was given was as below but anything I search for from there comes up with page not available.
Oct 2017
6:51pm, 3 Oct 2017
9,586 posts
  • 0
Torry Quine
So am correct that now RN=RO x 472 / 464 which equals 1.017

Therefore am I right in thinking that if our old rate is 543 our new rate would be 552.
Oct 2017
8:22pm, 3 Oct 2017
45 posts
  • 0
Given the rates, that's what I come to as well ...
Oct 2017
8:57pm, 3 Oct 2017
9,590 posts
  • 0
Torry Quine
Thank you very much for your help. Here's hoping the client agrees.

Got something to say?

To join the discussion, sign in or join us.

About This Thread

Maintained by Torry Quine
I've been left holding the reins until our new accountant arrives next month. Not a problem for...

Related Threads

  • accounting
  • advice
  • excel
  • finances
  • work

Buy a Fetch buff

Order now for immediate dispatch!

F'Laps 2024

Join us in 2024 for a part-virtual, part-gathering endurance event to celebrate 20 years of Fetcheveryone!

Training Heatmap

See all your training overlaid on one interactive map. A great way to remember everywhere you've been

Race Listings League

Which Fetchies have done the most to make our race listings as awesome as they are?

Back To Top

Free training & racing tools for runners, cyclists, swimmers & walkers.

Fetcheveryone lets you analyse your training, find races, plot routes, chat in our forum, get advice, play games - and more! Nothing is behind a paywall, and it'll stay that way thanks to our awesome community!
Get Started
Click here to join 110,950 Fetchies!
Already a Fetchie? Sign in here