Taking a Pay-cut

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news24

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In two week time, we will be relocating our offices to a new location. I've been told that I'd have to take a 43% pay cut because the living cost at new location are much cheaper than current location and also the quality of life is better.

How do you handle that?
 
You were earning R150 000.00 a month, so now it will be R85 500.00. How will you survive?
 
news24 said:
In two week time, we will be relocating our offices to a new location. I've been told that I'd have to take a 43% pay cut because the living cost at new location are much cheaper than current location and also the quality of life is better.

How do you handle that?
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Be sure to tell your cousin that you are poorer... she might not want you anymore.
 
That's a BS argument by your boss. Tell your boss to write you a letter of reference/recommendation and it that it should better be a good one otherwise there will be hell to pay.
 
news24 said:
In two week time, we will be relocating our offices to a new location. I've been told that I'd have to take a 43% pay cut because the living cost at new location are much cheaper than current location and also the quality of life is better.

How do you handle that?
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If its CTC your talking about then its one thing, but if its Gross, then you need to follow up with department of labour.
 
cbrunsdonza said:
If its CTC your talking about then its one thing, but if its Gross, then you need to follow up with department of labour.
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He's in the US or something, if memory serves. They do things a tad differently over there.
 
Messugga said:
He's in the US or something, if memory serves. They do things a tad differently over there.
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OK, makes sense. My dad worked in the States for as couple of years and cost of living does vary a lot. If he is living in New York but now moving down to rural Texas, then it makes sense that they make claims that they will give him a pay cut.
 
TJ99 said:
Cousins marry for love, not money..
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This is usually true... but I think this cousin might just want to be with his brother if he's taking a 43% paycut, he will be a better prospect for the future.
 
At 43% you're either moving from New York to the ass end of nowhere or they are subtly telling you to GTFO. Within SA its more like 10-20% difference in cost of living between places.
 
I'm moving from Macae, Brazil to Houston, Texas. Life in Macae is expensive even more so than Rio de Janeiro. Our office here is shutting down, if I don't go to US my other options are to take up a post in Abu Dhabi or quit. Resigning is not much of an option for me since getting a job in SA is not so easy especially for people with my experience.

I'm not the only one taking a cut, even my boss is doing so, its worse for him because he is having kids, and private education there is not so cheap.

All in All
It dosen't sound too bad considering that the company will provide me with a fully furnished home(paid-for), paid comprehensive medical+dental aid, relocation bonus, discounted stock options, paid vacation(anywhere in the world), return ticket for family member per year and lastly, all employees will be given a revenue bonus every year depending on how well the company performed.
 
Oh, I did try to get a better offer, 30% cut. I was told to forget it. It's a pity I don't have balls enough to tell them that its unacceptable. Fact is that they need me more than I need them. I'm supposed to have two more guys working with me on the same post, if I quit the office will be dysfunctional and it would take at-least 6 months for them to get a suitably qualified person into my post if they go through the legal channels. I don't know how I can use this to my advantage, I only have less than 1 year experience into this new post, so for now I'm a Yesman. :(
 
If it's so much cheaper there then surely they can afford to pay you more?
 
rorz0r said:
If it's so much cheaper there then surely they can afford to pay you more?
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I think it has to do more with the fact that we are part of an acquired company, and people working for the parent company on similar grade as us earned less, so maybe its their way of trying to level the playing field.
 
Fark that, tell him you want a 30% cut or else you're forced to resign.

I'm just waiting to see what increase I'm getting in April, if I don't like it I'll tell them I'm moving on - and I'm the only one doing what I'm doing at my company for the last 3 years.

Use that to your advantage and stop daydreaming about your cousin! :)
 
Sounds to me you are set then News24! You are one lucky bugger!!

All in All
It dosen't sound too bad considering that the company will provide me with a fully furnished home(paid-for), paid comprehensive medical+dental aid, relocation bonus, discounted stock options, paid vacation(anywhere in the world), return ticket for family member per year and lastly, all employees will be given a revenue bonus every year depending on how well the company performed.
Click to expand...
 
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