Gross salary cut to keep nett pay the same after tax and usc cuts - fair?

jmcc10

Hi all,

I'm looking on some advice on this please.

My agree salary was based on the take home amount of €620 weekly after all deductions.

After recent tax and usc cuts by the government to help with the cost of living crisis, my gross pay has been cut significantly. However, I'm still coming out with the same agreed upon €620 nett.

I feel that this is unfair as my co workers whom are paid an hourly rate are benefiting from the tax cuts where I'm not.

Do you think this is fair?

What would you do?

TIA JMCC

finglashoop

Ask for a pay rise proportionate to the cuts made

Atlantic Dawn

It's fair if that's the deal.

How did your employer ever agree to this in the first place? Pretty much every single budget each year your salary would have to change to make it come out that nett amount.

namenotavailablE

This page might help:

https://www.citizensinformation.ie/en/employment/employment_rights_and_conditions/contracts_of_employment/being_asked_to_reduce_your_hours_of_work.html

Mrs OBumble

https://www.boards.ie/discussion/2058266392/gross-salary-cut-to-keep-nett-pay-the-same-after-tax-and-usc-cuts-fair

The tax and USC changes announced recently do not apply until 2023, so would have no impact on you yet anyway.

If you really agreed to nett pay fugure, then that is what you signed up for. Next time you're jobhunting (tomorrow?) I'd suggest sticking to gross pay so you don't lose out again.

GoldFour4

Is this not a highly unusual pay arrangement? Why isn’t it based on gross?

bucketybuck

What would you be doing if the tax and USC had been increased but your nett stayed the same?

Sounds like you want to have your cake and eat it.

sonyvision

The changes to tax and USC won't come into effective till 1 Jan 2023 so that isn't true. If you have agreed the net pay amount how does your employer not know your playing him for a fiddle?

For example, you could be married and give all your credits and cut off points to your partner. Therefore to get a net 620 your gross needs to be much higher, in turn giving your married partner all the credits and thus reducing there tax.

Terrible agreement to have from the employer perspective.

Jim2007

https://www.boards.ie/discussion/comment/119715894#Comment_119715894

Sounds like a family company. @OP are you some way related to the company owners.

ari101

I always find it amazing when both sides agree to net to gross arrangements 🙈

It might be easier for employer Joe Bloggs to set up a standing order for the same amount each period rather than deal with changing pay, but I don't think they understand the risk they take on.

People moving credits to a spouse or finding a minimal part time job and moving all credits over so they can have a big refund at the main employer's expense at year end, etc.

It also doesn't allow for budgetary changes in tax credits and bands to reach the employee. Let's say the gov give a rental credit through the PAYE system, is there a legal requirement for the employer to pass it on in this scenario?

CIARAN_BOYLE

https://www.boards.ie/discussion/comment/119715894#Comment_119715894

Yep but it happens every so often.

It often happens in family companies or other badly organised companies.