Calculating Gross Income

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    I’m trying to figure out how my gross income will be calculated. When I got this job, my offer letter stated that my pay was based on a 45 hour work week. This includes 40 hours at my base pay and then 5 hours of OT. This is a base salary of $45,473.68 or $1,748.99 biweekly. With the OT, this brings my annual salary to $54,000.

    However, I was recently up for a promotion. Because of covid they could not do an actual promotion. So, my manager decided to guarantee me 3 hours of OT moving forward. So, now my paychecks have a minimum of $2,273.44 gross. This would give me a salary of $59,109.44 if I multiply that pay by 26 since I am paid biweekly. This started recently like the past 3 or 4 months and will continue.

    How will NACA calculate my salary? I want to know this since I know my monthly mortgage payment can’t exceed 31% of my gross income.


    Base pay only. Overtime is not included unless you can get a letter from your employer guaranteeing it. That first letter you have works.


    To determine gross monthly income from salary, individuals can divide their salary by 12 for the months in the year.
    Gross income per month = Annual salary / 12.
    Gross income per month = Hourly pay x (Hours per week x 52) / 12.
    Gross income = Gross revenue – Cost of goods sold.


    Hello maybeNACA,

    Your original offer letter is the key here.

    Since the letter specifically states you are guaranteed the five hours of overtime, it can be included in your income calculations as long as your paystubs back it up.

    If the additional three hours you are getting in lieu of a promotion was also promised to your in writing, it can be included as well. Just make sure the letter is very specific as to why you are getting the extra three hours, since it is technically temporary until your promotion can actually be formalized, based on what you have written. Once again, your paystubs will have to back it up.

    Tim Trumble
    Online Operations, NACA


    I would like to piggyback on this question. I am in a similar situation, but it would be difficult for me to get a letter from my employer (I’ve been trying for over a month now). My extra pay isn’t overtime though, it’s night differential(I work 12 hour shifts) and other forms of payment I’m receiving on top of my salary through longevity and other union obligations because of my title. All of this is guaranteed and on all of my checks. Will NACA take that pay into consideration if I can show them that I received these payments over multiple years even though I might not be able to get a letter?


    Here’s my thought. While your shift differential is indeed guaranteed it’s essentially an incentive for working the off shift. Your job function/role is listed in the payroll system as earning your base salary. The shift differential is not listed by the job function. It’s an extra that is added on to any eligible job function that clocks in during a predetermined time period. If the computer recognizes you clock in during the day shift it won’t add the shift differential to your pay for that day.

    Same for the union. Now I am not at all a union expert but my understanding is the union is not required to be employed at your company nor is it required to be in your job function. Therefore anything you receive from the union is comparable to a non union bonus because it’s not your salary it’s a benefit.

    You might have a better case than most but I still think your guaranteed pay is loaded with benefits and bonuses and your official salary is without them. You will probably need letters from both your employer and your union but keep us informed so we know what the deal is.


    Hi @nelsont,

    Just wondering in this case, if longevity would be considered? My husband has worked at the post office for ten years and he’s worked the same shift of 10pm-7am, his entire career there. He also receives a night shift differential so it’s listed on every pay stub.

    I am currently completing the Naca Member initial Assessment for my first intake appointment tomorrow so do I leave that figure out, as well as the overtime from this months pay?


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