There may be times when a client's earned income varies from month to month. For example, a client may know that they are going to work more hours in one particular month, or that they will miss some days of work because of
anticipated surgery, or that the factory they work at will go on a 2-week shutdown, etc.
Earned income budgeting policy is designed to use one budget for each 6-month period. When you learn at REDE that the client's earnings will not be the same throughout the 6-month period, anticipate the actual amount of earnings the client will make
in the entire 6-month period. Divide that amount by 6 and budget that amount for each month of the period. The reasons for budgeting earnings using this method may include, but are not limited to:
- a fluctuation in the number of hours worked,
- an increase or decrease in salary,
- the loss of a job when other budgetable earnings still exist for the unit, or
- a temporary absence from the job (e.g., expected time off without pay).
NOTE: This policy does not apply to a school employee whose earnings end due to summer vacation. See PM 10-01-05.