Pay rise - earning less...

Fart

I've recently received a pay rise of about 5% (was on minimum wage). Now I'm only earning a small bit more in gross but coming out with less net pay due to paying more taxes.

Surely they must have a certain percentage to increase your wages by if they are to give you a pay rise in order to gain a bit more out of it? After working here for a year I'm now earning less?

Does this happen in all jobs?

spr1nt3r

That's just the way tax works. I have seen number of people in my career not taking extra hours or extra cash for very same reason. Can you not add some sort of contribution to pension etc. to have a better long term lump sum and that way not having only a loss? Worth talking to financial adviser. Not just for this particular case but for general knowledge in these situations. Best of luck.

chris85

Fart wrote: »

I've recently received a pay rise of about 5% (was on minimum wage). Now I'm only earning a small bit more in gross but coming out with less net pay due to paying more taxes.

Surely they must have a certain percentage to increase your wages by if they are to give you a pay rise in order to gain a bit more out of it? After working here for a year I'm now earning less?

Does this happen in all jobs?

Happens sometimes if you go over a threshold for income tax, PRSI or USC. The job cant do anything for you on this, its hardly their issue.

Mrs OBumble

This doesn't usually happen, you must have just tripped the PRSI threshold. Its a mad characteristic if the tax system here. Complain to your TD.

NinjaTruncs

Itf could have something to do with your tax credits. Make sure to get your tax balanced at the end of the year. Every time I've gotten a pay raise mid year I've always gotten tax back at the end of the year.

wmpdd3

I was looking at this when I was offered part time employment from fulltime.

The anomalies I found were all around €280 - €345 per week. If I do a Sunday (time -plus a half ) I pay more Prsi than I get extra, it costs me €4,30 to work a Sunday!

Also if you are single and not a OPF then €24,000 is the best salary from tax terms!

Fart

Interesting, thanks guys.

I just think it's odd that they'd give me a 44c per hour pay rise; which then in turn leaves me out of pocket of €250 every year.
I just recently got a mortgage (on my own accord, I know :P) with my girlfriend and I was welcoming a pay rise, although not a substantial one. Seeing that I'm down a fiver a week, which isn't a huge big deal, it's just the principal of it:

"Congratulations, you've been given a pay rise... but you'll now be earning less".

I understand that it's the tax system, but that doesn't seem fair.

tatli_lokma

Fart wrote: »

I just think it's odd that they'd give me a 44c per hour pay rise; which then in turn leaves me out of pocket of €250 every year.
I just recently got a mortgage (on my own

I understand that it's the tax system, but that doesn't seem fair.

As Mrs Obumble says it's probably not tax but USC and PRSI that has caused the extra payment. The silly fact is that your employers PRSI contribution will also have gone up. It is a silly situation caused by our government which means people often refuse pay rises for this reason. I have had employees say thanks but no thanks to a rise because they would not only loose money but because they would loose benefits like medial card or mortgage subsidy due to the increase in gross salary

all you can do to console yourself OP is think of it as something on the record which clearly says you are worth more than minimum wage. Hopefully at the next review you will get a further raise which will actually put money in your pocket.

Fart

Aha, thank you Little Ted.

Do you think it is rude to not accept such an increase in pay? Or should I accept it in case there is another pay rise in the future?

Mrs OBumble

Accept it in case there's another raise in future. This should be a one-off blip.

Another troublesome gross pay range for people in social housing is somewhere between E400-E600 per week, when income-based rent increases can soak up wage increases. But this won't worry you if you've just bought a house.