Do people need full pay in this environment?

Pkiernan

If it helps to keep jobs in the private sector and lowers the tax bill for public sector workers, do we really need to keep pay levels at full pay?

Noones going on holidays, to the pub, buying cars etc.

Inflation will be zero and fuel costs are down. Couple that with mortgage and rent holidays, we simply don't need full pay (private, public or welfare) at this time.

Pkiernan

Pkiernan wrote: »

If it helps to keep jobs in the private sector and lowers the tax bill for public sector workers, do we really need to keep pay levels at full pay?

Noones going on holidays, to the pub, buying cars etc.

Inflation will be zero and fuel costs are down. Couple that with mortgage and rent holidays, we simply don't need full pay (private, public or welfare) at this time.

Food, fuel, utilities, direct debits,

bladespin

Speak for yourself, none of my bills are reducing from what I can see.

Ubbquittious

Pkiernan wrote: »

If it helps to keep jobs in the private sector and lowers the tax bill for public sector workers, do we really need to keep pay levels at full pay?

Noones going on holidays, to the pub, buying cars etc.

Inflation will be zero and fuel costs are down. Couple that with mortgage and rent holidays, we simply don't need full pay (private, public or welfare) at this time.

Tis grand as its long as its someone else's pay that's being cut. What about your own?

bladespin

bladespin wrote: »

Speak for yourself, none of my bills are reducing from what I can see.

If you have a mortgage or renting they are.

Salary Negotiator

Well I'm doing as much work as before and what I spend my money on is nobody's business but mine so I expect full pay.

I work for a huge multi-national who when the time comes will just lay me off (something that was on the cards before this pandemic) so until then I won't be agreeing to a reduced wage.

jimmytwotimes 2013

mariaalice wrote: »

If you have a mortgage or renting they are.

How? Mortgage/rent holiday will only be for those who need it, not everybody.

Ten of Swords

Salary Negotiator wrote: »

I expect full pay.

Username checks out :pac:




Had to!!!

Pkiernan

Ubbquittious wrote: »

Tis grand as its long as its someone else's pay that's being cut. What about your own?

I fully expect that my tenants may not be able to pay rent to me. That's a very big pay cut.

Heres Johnny

I was just thinking myself that if I can stay on full pay through this I will emerge with quite a lot saved as my spending will be severely curtailed as I have no leisure or fun activities to avail of. However, thats how economies enter recessions by people hoarding money so I will not do it too much.

However we are facing layoffs and currently deciding whether it is better if we all take a 20% pay cut instead of laying off 20% of staff. Going to cause problems anyway

jimmytwotimes 2013

jimmytwotimes 2013 wrote: »

How? Mortgage/rent holiday will only be for those who need it, not everybody.

Those who need it are those who are laid off if they are working it would not apply, either people are working or they are laid off they cant be both.

Heres Johnny

mariaalice wrote: »

Those who need it are those who are laid off if they are working it would not apply, either people are working or they are laid off they cant be both.

Could be a 3 day week, could be a pay cut.

Heres Johnny

Heres Johnny wrote: »

Could be a 3 day week, could be a pay cut.

But that is different, people would have to cut back, I do think we will bounce back very quickly once we sort this.

mariaalice

mariaalice wrote: »

If you have a mortgage or renting they are.

I'm renting, my landlord lives in Australia and is not affected, so won't be getting a mortgage holiday, so I won't be getting a rent holiday.

Lurching

mariaalice wrote: »

If you have a mortgage or renting they are.

Even if I was in a position to pause my mortgage, I'd end up paying more in the end as the bank certainly won't pause the interest.
I'm not volunteering any of my salary so that I can pause my mortgage.

Lurching

Lurching wrote: »

Even if I was in a position to pause my mortgage, I'd end up paying more in the end as the bank certainly won't pause the interest.
I'm not volunteering any of my salary so that I can pause my mortgage.

How much is three months of interest on an average mortgage? its cant be that much, however, I do not think it is not the correct response there should have been one month pause of all rent, mortgage, utilities, and then reassess for everyone who has been let go.

bladespin

mariaalice wrote: »

If you have a mortgage or renting they are.

They're not, fuel cost is up due to extra use at home, food bills too, not to mention additional cost for all the toilet rolls and hand sanitiser.

Gretas Gonna Get Ya!

Pkiernan wrote: »

If it helps to keep jobs in the private sector and lowers the tax bill for public sector workers, do we really need to keep pay levels at full pay?

Noones going on holidays, to the pub, buying cars etc.

Inflation will be zero and fuel costs are down. Couple that with mortgage and rent holidays, we simply don't need full pay (private, public or welfare) at this time.

Who is this "noone" chap you keep rabbiting on about anyway?

Is he a buddy of yours or something?

Pkiernan

Gretas Gonna Get Ya! wrote: »

Who is this "noone" chap you keep rabbiting on about anyway?

Is he a buddy of yours of something?

I'm afraid to start laughing at that joke in case I never stop.

witchgirl26

Yes I need full pay. I still have a mortgage to pay which I can't get a break on because I haven't been directly affected by the virus so wouldn't qualify. My bills are actually a bit higher as there's 3 of us at home all day everyday and eating breakfast, lunch & dinner as opposed to just breakfast & dinner. Also I may have to still pay full creche fees so my salary is quite important right now.

I don't need my full pay but I certainly intend to keep paying it to myself.

mohawk

Pkiernan wrote: »

If it helps to keep jobs in the private sector and lowers the tax bill for public sector workers, do we really need to keep pay levels at full pay?

Noones going on holidays, to the pub, buying cars etc.

Inflation will be zero and fuel costs are down. Couple that with mortgage and rent holidays, we simply don't need full pay (private, public or welfare) at this time.

Only people getting mortgage and rent holidays should be those who lost their jobs. Anyone who still has their jobs should be paying their bills so banks, utility companies etc have enough cash to help those who lose their jobs.

mohawk

mariaalice wrote: »

How much is three months of interest on an average mortgage? its cant be that much, however, I do not think it is not the correct response there should have been one month pause of all rent, mortgage, utilities, and then reassess for everyone who has been let go.

Why should people not affected get a pause on their bills. That would only make situation worse.

ILoveYourVibes

Yes. People need rent ..electricity food etc. I dont know many people that have high outgoings on socializing these days.

jimd2

Pkiernan wrote: »

If it helps to keep jobs in the private sector and lowers the tax bill for public sector workers, do we really need to keep pay levels at full pay?

Noones going on holidays, to the pub, buying cars etc.

Inflation will be zero and fuel costs are down. Couple that with mortgage and rent holidays, we simply don't need full pay (private, public or welfare) at this time.

This is something that I was also thinking.

If it was to help the coffers I think all public servants on salaries over a certain amount (say €75k) should have their salaries cut back to €75k for the duration of this but pension calculations still based on actual salary.

Others in the economy are getting a hammering and this should be enough for them in this environment.

I may get creased for this but I would point out that I am a public servant on over €75k.

Fann Linn

Two weeks in and the public private debate has started.
Actually took a bit longer than I expected though.

Idbatterim

with the place in lockdown, you can live on a pittance, certainly if you are housebound!

people should only be allowed defer mortgage, if their job circumstances have changed, the money to prop up banks now will have to come from the taxpayer I assume, what kind of idiocy would it be, to have people who's circumstances havent changed and the taxpayer, supporting the amount the banks are out :rolleyes:

mariaalice

mariaalice wrote: »

How much is three months of interest on an average mortgage? its cant be that much.........

If in the first 10 years of the mortgage at 3% its about 40% of the total amount.
As the mortgage matures and you owe less then less interest gets added so there's less to pay.

gibgodsman

mariaalice wrote: »

If you have a mortgage or renting they are.

My rent hasn't changed? None of my bills have, even Sky haven't bothered to allow me to pause sky sports yet

c68zapdsm5i1ru

Most of my pay goes on my mortgage and deferring isn't really an option as I'll be retiring in a few years and can't afford to pay it on a pension.

namloc1980

mariaalice wrote: »

How much is three months of interest on an average mortgage? its cant be that much, however, I do not think it is not the correct response there should have been one month pause of all rent, mortgage, utilities, and then reassess for everyone who has been let go.

Say €200k mortgage at 3.5% would be interest over 3 months of €1,750.

namloc1980

Pkiernan wrote: »

If it helps to keep jobs in the private sector and lowers the tax bill for public sector workers, do we really need to keep pay levels at full pay?

Noones going on holidays, to the pub, buying cars etc.

Inflation will be zero and fuel costs are down. Couple that with mortgage and rent holidays, we simply don't need full pay (private, public or welfare) at this time.

If anything heating and electricity bills will be going up for some people who are now at home all day and using more utilities than an average weekday. Housing still has to be paid for. Only saving for some people will be reduced transport costs.

arctictree

When the banks say that they are allowing people have a payment freeze on the mortgage, are they still adding up interest over this period?

bladespin

namloc1980 wrote: »

Only saving for some people will be reduced transport costs.

Mine will actually go up lol.

namloc1980

arctictree wrote: »

When the banks say that they are allowing people have a payment freeze on the mortgage, are they still adding up interest over this period?

Yes

Sultan of Bling

Idbatterim wrote:

people should only be allowed defer mortgage, if their job circumstances have changed, the money to prop up banks now will have to come from the taxpayer I assume, what kind of idiocy would it be, to have people who's circumstances havent changed and the taxpayer, supporting the amount the banks are out

The taxpayer is already propping up the banks. That's what the USC deduction in your pay packet is every week and pension levy if you are a public sector worker.

Sultan of Bling

Sultan of Bling wrote: »

The taxpayer is already propping up the banks. That's what the USC deduction in your pay packet is every week and pension levy if you are a public sector worker.

....... all the more reason for those who can pay their mortgage and rent to continue doing so.

tom1ie

mariaalice wrote: »

If you have a mortgage or renting they are.

How is the mortgage reducing?
You do know interest is accrued even if you don’t have to pay your repayment.
In other words the bank aren’t out of pocket they just collect more money along the term of the rest of the mortgage.

tom1ie

tom1ie wrote: »

How is the mortgage reducing?
You do know interest is accrued even if you don’t have to pay your repayment.
In other words the bank aren’t out of pocket they just collect more money along the term of the rest of the mortgage.

It is a paused for 3 months which will allow a brake untill people go back to work, its better that nothing I dont think its the correct approach but I am not the government.

We also need people to have money so they can spend with this is all over and it will be over sometime.

Sultan of Bling

Augeo wrote:

....... all the more reason for those who can pay their mortgage and rent to continue doing so.

Agree 100%

Tough times ahead though. I imagine there will be an emergency budget called. Austerity, here we come.

The next public sector pay restoration due in October (I think), under the Haddington road agreement will be reversed.

namloc1980

namloc1980 wrote: »

Say €200k mortgage at 3.5% would be interest over 3 months of €1,750.

I think this is a big issue that's being glossed over. The banks are not 'helping' anyone here - the principal amount owed staying higher for the period you're not paying it is actually making your mortgage more profitable to them.

No one seems to be picking up on this for some reason. If they froze interest, they'd be helping you out.

JoeA3

My understanding of the mortgage "holiday" situation is that it really doesn't cost the bank anything. They're not "bailing" anyone out thats for sure! And its nothing new, mortgage payment deferrals have always been there for people to avail of in certain circumstances. They even offer them to first time buyers for example, when starting off, to give them a chance to move in and pay the first few new bills...

If your current mortgage repayment is lets say 1,000 per/month and you take 3 months off - that 3K you didn't pay in that period is spread out over the remaining term of your mortgage. So come July/August, whenever your "holiday" ends, your monthly repayment will be increased slightly. It might be less than 50 a month, but it'll be there.

JoeA3

JoeA3 wrote: »

whenever your "holiday" ends, your monthly repayment will be increased slightly. It might be less than 50 a month, but it'll be there.

I don't think that's how it's being done - i think the term is extending, rather than the payment increasing.

JoeA3

Deleted User wrote: »

I don't think that's how it's being done - i think the term is extending, rather than the payment increasing.

It might vary from bank to bank or indeed from borrower to borrower, whether they add on 3 months to the end of your term or they spread the 3 months over your existing term - you will eventually repay them back the same thing, holiday or no holiday, regardless.

witchgirl26

JoeA3 wrote: »

My understanding of the mortgage "holiday" situation is that it really doesn't cost the bank anything. They're not "bailing" anyone out thats for sure! And its nothing new, mortgage payment deferrals have always been there for people to avail of in certain circumstances. They even offer them to first time buyers for example, when starting off, to give them a chance to move in and pay the first few new bills...

If your current mortgage repayment is lets say 1,000 per/month and you take 3 months off - that 3K you didn't pay in that period is spread out over the remaining term of your mortgage. So come July/August, whenever your "holiday" ends, your monthly repayment will be increased slightly. It might be less than 50 a month, but it'll be there.

The problem the banks have with offering a blanket "holiday" is less about monetary impact on them but mainly around putting them in breach of their conditions of lending from the Central Bank etc. Usually there wouldn't be as many people looking for a break from payments at the exact same time so it wouldn't impact their loan book to the same degree. As for first time buyers, they've often factored in that initial break when they were offering the loan and ensured it wouldn't impact the loan book.

That's why it took a little bit to get it sorted as it wasn't just on the banks to say "ah yeah go for it" but rather getting the regulatory authorities to allow the banks to alter loan books to that degree without incurring fines themselves.

pwurple

Bills dropping?

Parents have each had to set up bloomin' schools in their houses for children. Printers, internet connections and laptops. Books, ink. Heat the house while they are in it. You know, all the stuff we pay schools to do as well from our taxes. There are 1 million children in the state, no longer in school or creche.

JoeA3

witchgirl26 wrote: »

The problem the banks have with offering a blanket "holiday" is less about monetary impact on them but mainly around putting them in breach of their conditions of lending from the Central Bank etc. Usually there wouldn't be as many people looking for a break from payments at the exact same time so it wouldn't impact their loan book to the same degree. As for first time buyers, they've often factored in that initial break when they were offering the loan and ensured it wouldn't impact the loan book.

That's why it took a little bit to get it sorted as it wasn't just on the banks to say "ah yeah go for it" but rather getting the regulatory authorities to allow the banks to alter loan books to that degree without incurring fines themselves.

Ah yeah, thats fair enough. I can well imagine it wasn't as simple as flicking a switch.

Thelonious Monk

What about civil servants at home doing nothing as they don't have the provision to work from home and are being advised not to come in? This is all unprecedented but sooner or later we're all going to have to take massive cuts to help out.

Fann Linn

Thelonious Monk wrote: »

What about civil servants at home doing nothing as they don't have the provision to work from home and are being advised not to come in? This is all unprecedented but sooner or later we're all going to have to take massive cuts to help out.

I think a lot of them are being redeployed to contact tracing, sw etc

Idbatterim

unless things can come back to some sort of middle ground in a few weeks, there will be big financial issues!

The way I see it is, you could get the older and more at risk to isolate. even those older people working in say retail like supervalu, pubs, deli's etc etc, its not like there wont be young people lining up now for those positions.

Lurching

mariaalice wrote: »

How much is three months of interest on an average mortgage? its cant be that much, however, I do not think it is not the correct response there should have been one month pause of all rent, mortgage, utilities, and then reassess for everyone who has been let go.

€1,687. Why would I pause my mortgage when I'm still working as normal and earn every penny I get?