2 change or not 2 change ??

blahblah06

Hey Guys,

Well the story is this.

Im in a great job at the moment. There has been an opportunity for a new position ie 4500 euro pay rise. However, If i stay in this job and do a days ot once a week i will have a 10 grand pay rise as such. Ot is always there and i just wondered what every though. by the way if i do the ot i will be working 5 days a week. The other job is 5 days also.

WizZard

€4,500 is not worth changing jobs for, especially if you can do overtime in your current job. OT is great, as you can get extra money when you need it. €4,500 will most likely be swallowed up by tax unless you are on minimum wage at the moment.

blahblah06

Ye i was thinking that myself. but now im going to have to approach the hr dept and tell them i dont want it now. how do i do that ??

Zaph

Depends on a few things that you should consider.

1) How much of a percentage of your current salary is €4,500? If you're on €20k it'll have a more significant impact on your overall standard of living than if you're on €35k.

2) How much do you value your free time? Will taking the new job free up loads of extra time for you to enjoy or is the overtime you currently do not too much of an imposition?

3) What tax rate are you on? If you're on the higher rate €4,500 will only equate to around €45 extra a week in your pocket. Is it worth switching jobs for that? Similarly, will the increase in salary move you from the lower to the higher rate?

4) You admit that your current job is great. Will the new one be better than what you're currently doing? Money isn't always the best reason for switching jobs.

blahblah06

zaph wrote:

Depends on a few things that you should consider.

1) How much of a percentage of your current salary is €4,500? If you're on €20k it'll have a more significant impact on your overall standard of living than if you're on €35k.

Im on 25 at the mo

2) How much do you value your free time? Will taking the new job free up loads of extra time for you to enjoy or is the overtime you currently do not too much of an imposition?

Doing ot doesnt bother me as i have been doing it for ages and am used to the hours. doing ot will still be only 5 days

3) What tax rate are you on? If you're on the higher rate €4,500 will only equate to around €45 extra a week in your pocket. Is it worth switching jobs for that? Similarly, will the increase in salary move you from the lower to the higher rate?

Lower i think ?

4) You admit that your current job is great. Will the new one be better than what you're currently doing? Money isn't always the best reason for switching jobs.

Its a promotion so it will be a different dept within the company

What do u reckon

Zaph

Well taking the job will only barely move your salary into the top tax bracket (changes at €29,400) , although if you're doing €10k worth of overtime every year then you're already there. On that basis, the overtime is worth about another €55 a week over your proposed new salary. My earlier calculation on the extra €45 a week should actually be around €65 a week as your salary is in the lower tax band.

As for the hours, getting used to them is one thing, but doing overtime equating to 40% of your current salary is not healthy - by my reckoning you're averaging around two hours a day extra. Is there overtime in the new job? If so, even if there isn't as much, you'll end up earning near enough what you're making now but with more time for yourself.

The final point is whether the promotion will lead to greater things in the future? Taking a small pay cut now may be worth it in the longer term if it puts you on a career path that has greater rewards down the line than the one you're currently on. Also, turning down a promotion may mean the company would be reluctant to offer you another one in the future, so you may be stuck at the bottom of the pile, on a lower salary, for a long time.

My advice - based on what you've said I'd go for it. However, obviously I don't know all the facts so there may be other reasons why you'd prefer not to take the job, like current workmates, dislike potential future workmates, etc.

blahblah06

Very wise words.

So is that 55 after tax or before a week? your right in what you say about the workmates and i would be pissed about not having any other chances. i just dont know my head is melted :cool:

Zaph

All the figures are approximate after tax and PRSI. Gotta head out now, but let us know what you decide to do.

Best of luck.

blahblah06

that doesnt sound to bad at all. 100 euro extra every pay cheque.. ill let you know. ill find out tomorow if i got the 2nd interview. im hoping i dont but then again im hoping i do

Zaph

Sorry mate, just to clarify, if you change jobs, it's worth about €65 a week more after tax than your current basic but you'll be down about €55 a week after tax compared to what you're currently on with that level of overtime.

blahblah06

Ye i know what ua mean. but can u do me a favour and work out the amount of pay each week after tax for both parts. say the 29500 and then 35000 just to see if its worth while

nesf

This would be useful to you: http://www.deloitte.ie/taxcalculato...Calculator.html Edit: No longer works apparently, hold on I'll see if I can find an alternative.

Edit: http://www.hookhead.ie/Tools/tax2005.jsp

Just fill in the areas you need to. Gross, pension etc.

the_syco

nesf wrote:

This would be useful to you: http://www.deloitte.ie/taxcalculato...Calculator.html Edit: No longer works apparently, hold on I'll see if I can find an alternative.

Jeebus. The link doesn't work as its not the real link. Do a "copy link", instead of copying the text of the link.
Anyhoo's, I think this maybe what you were tring to link to: http://www.deloitte.ie/taxcalculator/DT_TaxCalculator.html

blahblah06

great site guys thanks

nesf

the_syco wrote:

Jeebus. The link doesn't work as its not the real link. Do a "copy link", instead of copying the text of the link.
Anyhoo's, I think this maybe what you were tring to link to: http://www.deloitte.ie/taxcalculator/DT_TaxCalculator.html

rofl.

Today has been a day of stupid mistakes on and offline.

blahblah06

i didnt get the job so looks like my mind is made up LOL

Zaph

That makes it a lot easier all right. Better luck next time!