To take a 40k pay cut

[lul37]

We have been living in ME for almost 6 years now and wanting to move back to our home in London since last year.

DH has finally been offered a job back, BUT it's on a much lower pay than what he's on now, basically 40k less than what he's currently on. Not to mention the tax to be paid on top of what once we are back.

He also just got promoted in his current role which pays well but requires a lot of travel and is also unstable (lots of redundancy happening due to Covid, etc).

I'm just unsure if it's the right time now to move back, due to Covid situation and also with pay cut, i feel it would be such a downgrade. We would probably manage on the lower pay in London if I could find a part time job if we move back. Don't know if that going to be possible under the current lockdown.

I haven't been able to work while abroad due to DH's constant travel schedule.

On the other hand, we really want to move back to be closer to our family as many friends here have left and we we feel so isolated, I'm also worried about the hassle of moving schools for my two DS (12 yrs and 9yrs) right now.

But I'm also worried we might not get another offer in the next year or this is the best offer under the Covid circumstances.

AIBU to want him to turn it down now, and hope he gets a better offer in a few months?? I feel he is disappointed but torn as well.

I'd move back. Money isn't everything.

It depends whether the offer he has got is the going rate. In ME they can afford much higher wages, in some places they pay citizens a universal income, so it's not a surprise he gets offered less in London.

If the 40k drop would see him working at the market rate you have to weigh up the drop in income versus the benefit of getting away from ME. Personally I'd say it was well worth it, but only you know your circumstances.

This is always the trade off in moving to ME - your DH is unlikely to get a package in the UK that matches what you get over there. Only you can decide what is more important to you.

He can also continue to look for better offers in the UK.

Surely your DC are old enough that you working shouldn't be too difficult what with afterschool club or something? You might not make up the 40k shortfall but even half that would be good no? Worth it to be close to family/friends IMO.

What does he want to do?

Is it the going rate for his job over here though? Is he likely to get a better offer?

Depends on what he earns and whether you could work to mark up the shortfall

You can't compare ME salaries to Uk salaries, so don't look on it as a £40k cut, it is about the price or a role in X location.

You need to look at what is the right salary for the UK job in that location (or the location that you want). Is that adequate to meet your living costs?

Have you considered moving back to the UK but moving outside London to somewhere cheaper but within commuting distance?

Move back. Go full time yourself to make up some of the shortfalls.

Saying the salary is 40k less isn't really telling us anything. We would probably need a ballpark of family income in London to advise.

What sort of percentage is that? 80 to 40k is different to 160 to 120k

It rather depends on whether his current salary is £400k or £60k...

For me it would depend how much that 40K is a drop from. 40K off 100K salary and now paying U.K. taxes would be a serious lifestyle change for a family used to say 100K tax free, however, 40K off 300K salary would probably be much more manageable.

It depends if that's the UK market rate for his role. I don't think you can compare the two countries in terms of cost of living and salaries. If you're going to move back then I would do so sooner rather than later before your eldest starts GCSEs.

I would do it ASAP with a 12 year old. You will find solutions to other issues once back. But you really do need to think about your mindset, and viewing it is a Downgrade, or that will run off on your children. Do you see people on less income than you as downgraded? I'm assuming not, so don't view yourself in that way.

Assuming the Middle East has fewer Covid restrictions in place than here then I'd hold fire for the time being. Things are utterly shit here and if I could, I'd move anywhere else in a heartbeat.

If you're settled, earning good money and have the option to eat out, socialise and have kids at school then those would be of paramount importance at this time. Maybe re-assess in a year or two?

I’d move back and maybe keep looking for something better paid if need be. The housing prices and the cost of living differential is massive between here and the UAE. Also you haven’t mentioned whether his current company covers school costs or not as that would be another huge saving.

As others have mentioned it depends what percentage drop it is. Are you planning on private schooling in England? If not, then you will save on school fees. It is also a very different lifestyle, so not comparable really.

Well it depends. Have they offered the going rate for the role in London? Just because it pays X in the middle east doesn’t mean that x-40 plus heftier taxes isn’t the going rate in London for such a a role. And if so then there may not be a much better paid role to be had.

If you are paying for private schooling and can put them into state school in London that will save a fortune.

I wouldn’t move back right now. Your kids will get no schooling at all. Post Covid perhaps.

Have you managed to save a lot whilst in the ME (due to minimal to no tax) so this would offset the drop?

Depends on the salary - 80 down to 40k no 120k to 80k yes

@lurker101 it's a drop from £130k down to £90k. I know money isn't everything just keep thinking it's such a shit time to relocate. He has worked so hard to get that promotion as well. DH is confused but leaning towards staying put for now. The going rate for his London role is actually between £100-£120k.

@SeasonFinale no major savings, we have just enough for relocation costs, killer schools fees here are the equivalent of taxes.

Assuming your DH is a high earner and they really want him for a senior position, I would suggest he negotiates and secures a better overall package. There's no such thing as 'the going rate' at senior levels in my field, packages vary hugely for comparable roles.