To be gobsmacked about my salary increase

[Clementinemist]

I started a new job a month ago, which came with a £15k payrise. 'Lucky me!' I thought when I was offered the role. It should have meant a bit more more disposable income. But in reality my disposable income has now actually decreased by £150 a month, mostly due to recent rent and bill increases.

Just wow.

I'm well qualified and experienced in my profession, and worked really hard for this role. It's quite senior too with more responsibility than my last job. Yes, I'd have been even worse off financially if I was still in my old job, but still a kick in the teeth. The concept of career and life progression now seems to be dead?

I got a pay rise & took home less this month due to increased tax, & obviously the money isn't going as far.

Wages have been stagnated for decades though, it's a real problem.

Yes and tax too. Also I probably should have said take home pay, rather than disposable.

You’re comparing apples and pears.

Your employer pays your salary.

Your landlord charges you rent.

Your utilities providers charge you for their services.

Your salary HAS increased. That you have less money in your pocket at the end of the month has got nothing to do with your earning potential, or career or life progression. Imagine where you’d be without the salary increase.

I got a secondment to a senior tile and have never been worse off!

I'm getting a 20% payrise from new job at start of June, but yes I think I'll also have to starting put about 30-40% extra into bills each month. 😕

Disposable income is after tax.

Discretionary income is after essentials have been paid for.

Both are decreased for me.

Imagine where you’d be without the salary increase.

Imagine if we didn't have a race to the bottom!

Well you are better able to afford your rent and bill increase then aren’t you?

Assuming you’re a lower rate taxpayer, that must mean your bills have increased by almost £1,000 a month? How much of that was rent increase? It must fall within what the government terms “fair and reasonable, and an increase of several hundred pounds (unless you were previously paying well under market rent) can therefore be challenged. If your utilities have increased by that much then unless you’re heating the house 24/7 with the windows open, you can decrease your usage surely?

I voted YABU. You are worse off due to rising costs. You know that. You'd have been even worse off if you hadn't got a pay rise. If wages go up across the board, inflation will too so your money still won't go as far.

Then you are extremely lucky

Yeah it's not great. My rents gone up by £100 a month, fuel by the same, water an extra £20, council tax an extra £30 am not sure about the NI increase yet maybe £30? Am very fortunate that I can afford to feed myself and heat my home etc but my attempt to save for a deposit to buy (or anything else really) has been totally wiped out.

When I get a payrise now, unless it's really big, I think of it as a good thing that the extra money will cover the cost of living rises that year and I won't be worse off. Always look at the positives.

That's really shit, I'm sorry this has happened to you. The cost of living increases are completely out of control.

I'm retraining in a profession and it really does make me think what's the point in pushing myself, getting into debt to qualify in a much needed helping profession? In reality, I won't be any better off even when I get a full time job. Wages are shit, rent prices are through the roof (I won't mention extortionate house prices because half of my money goes on rent so I can't afford to save), council tax goes up every year, energy prices are shocking, food is going up seemingly every week... why bother? I still won't be able to afford holidays or a car. I won't be able to afford to save or contribute to a pension.

I guess the reason I carry on is that at least I won't be worse off (apart from the debt obviously). My aspiration is to continue to be able to pay my rent and bills. It's so pathetic.

15000pa increase is about a £1000 increase in your take home pay, so your rent and bills have gone up £1150 in the month you got your payrise? That's a lucky coincidence, also seems unlikely, unless you're living the kind of life where £15000pa isn't very much.

If the takehome isn't £1000 extra, is your tax code right?

£15k is over £1k a month....assuming you are a higher rate tax payer you could expect to take home day an extra £500 per month....how much as your rent gone up and other bills that you are actually £150 less well off??

Yabu - everyone's struggling at the moment. Things could be a lot worse. At least you've had a decent parish.

OP may have student loans being deducted and may also be contributing to a workplace pension

Payrise

Work keep banging on about our pay rise while conveniently glossing over the fact they've pushed our pension contributions from 10% to 15%.

My recent payrise took me into a new band for pensions contributions, so I'm now paying 2% more into that... I mean I'll benefit in the future but I did have to grit my teeth when I found out.

I think trying to pick apart OPs finances is missing the point of the thread. I'll assume OP is being truthful and has accurately worked out that she's £150 pm worse off.

Whether she's wealthier than us or not is irrelevant. Like pp have said, it's not a race to the bottom.

No one should work their backside off to get a promotion which involves increased responsibility and end up worse off financially. It's not right and it's not fair.

Commiserations on your massive pay rise OP

That isn't actually possible, given that you'd only pay higher rate tax on the portion of your salary that's over the threshold