Potential Income and Expenditure sources and estimates for funding the appointment are listed in the table below. Please note these are not an exhaustive list and careful consideration and documenting will need to be completed before the role is formalised.
It is worth remembering that the cost of hiring an employee goes far beyond just paying for their salary to encompass recruiting, training, benefits, and more.
There are also certain expenses to take into account when putting together a recruitment budget. These includes; job boards; advertising; agency fees and the invisible costs i.e. time for shortlisting, interviewing and new employee orientation.
It is therefore essential that the relevant finance committee/ decision maker confirms the budget and affordability of the appointment prior to the post being advertised.
Income Examples
- Church or circuit funds
- Gifts
- Grants
- Funding sources (if applicable) should be indicated. Such information would normally be listed on the offer letter and the contract of employment.
Expenditure Examples
- Salary: More information regarding setting salaries can be found on the Pay and Pensions pages.
- Employer's contributions for National Insurance (13.8% above the prevailing threshold)
- Employer's pensions contributions (The Conference requires employing bodies to offer pension provisions to all employed Lay Workers to whom a new contract of employment is issued under S.O. 438A on the basis of contributions of at least 6% of salary by the employing body and 6% by the Lay Worker. For further information please refer to Pensions Provisions for Lay Employees).
- Living accommodation: Council Tax, water charges, maintenance - if accommodation is provided - and heating and lighting costs if these are included. (These items can vary depending on where the post is based). These provisions must be checked with HM Revenue & Customs local office to establish if regarded as taxable benefits.
- Housing allowance: This is generally taxable.
- Travel: Car mileage allowance or reimbursement of public transport costs. The Connexional Allowances Committee recommends that the maximum rates as prescribed by HMRC’s ‘approved mileage allowance payment scheme’ (AMAP) be observed. The employee cannot claim for travel from home and the place of work where a designated 'Place of Work' (not the home) is specified.
- Office costs: Telephone rental and calls, postage, stationery, photocopying, equipment, premises costs, heating and lighting, costs for use of the Internet and fax facilities should be determined and agreed.
- Training: Course fees, helpful publications or text books, travel expenses, accommodation.
- Termination of employment: You should recognise that the employing body will be responsible for any costs if the post becomes redundant after two years. Statutory redundancy payments are calculated on the basis of an employee's age, years of service and weekly pay, up to a stipulated maximum.
Further information is available on the Direct.gov website at www.direct.gov.uk/en/Employment/Employees/