A payroll differs from a payroll because salaried employees are paid per hour worked or piecework on the basis of the work result, while salaried employees receive a fixed monthly salary. Since the monthly salary, in contrast to the salary is subject to regular fluctuations, borrowing is more difficult for salaried employees than for salaried employees.
How does the bank rate the wage amount?
For the assessment of the credit rating, the bank needs verifiable information about the amount of the regular monthly income. While salaried employees can submit their employment contract as evidence, wage earners have to apply for their loan with a pay slip.
Usually, the bank does not have a single pay slip, but asks for the submission of payslips in the last three months. Since the income of the wage earner is also subject to fluctuations, the bank determines the theoretically lowest income and bases this on its creditworthiness calculation.
The theoretically lowest income is calculated by considering a month with the least theoretically conceivable paid days. Public holidays are valued in this calculation as working days, because the applicant gets these also paid.
In most cases, the bank only calculates income on the basis of the agreed minimum working hours and does not take into account overtime, although exceptions depending on the negotiation skills of the applicant are possible.
If the billing of the work performance as a piecework wage, the bank takes into account only the minimum wage and not the chord surcharges, since these are not necessarily secured for the future.
How are overtime valued?
If borrowers apply for a payroll loan, the most common way of dealing with overtime earnings is not to treat them as regular income. The basic idea of the bank is quite comprehensible, it sees only the income from the contractually agreed working hours as assured.
In many cases, the loan is applied for with payroll accounting that does not directly indicate overtime, as some companies only pay overtime pay after a larger amount of work over and above the minimum working time.
In this case, a lender will usually submit the employment contract, which results in the contractual minimum working hours, if there are major fluctuations in the number of hours.
Anyone who regularly works more than the number of hours stipulated therein and can present this fact to the bank, achieves, with some bargaining skill, the recognition of his actual monthly working hours as a basis for calculating the loan applied for, which results in an increase in the possible credit line as well as a reduction in the payable Interest on the loan with a payroll results. However, the prerequisite is that the borrower can credibly continue to work to a greater extent than required by law.