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Original poster

To be gobsmacked about my salary increase

187 replies

Clementinemist · 25/04/2022 21:14

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?

OP posts:
givethatbabyaname · 25/04/2022 23:49

MrsPopplecat · 25/04/2022 23:01

But the OP is working harder and taking more responsibility and has nothing to show for it. Obviously they'd be in a worse position without the pay rise but there is something wrong in the world when you take on a more senior role with a big pay rise but still find yourself paddling to stay afloat financially

Show quote history

Of course there’s something wrong in the world! Specifically, a Tory govt, the communal costs of a pandemic and probably Brexit too.

This in no way means that career and life progression are dead. That’s preposterous. If getting a £15,000 pay rise leaves you feeling bitter because you don’t have more disposable income, do something about it. Go out on the streets and protest. Lobby your MP. Vote differently. Influence people you know to vote differently. The answer is NOT to conclude that it’s not worth having a career or that life progression (in all its myriad forms) is dead. That a puerile and pointless thing to say. It’s the kind of statement that comes from an expectation that if I do xyz, I will receive abc. Life doesn’t work like that. Shit times happen to everyone, in different ways, at different times. This is a shit time economically for a lot of people in the UK. It’s not the OP’s employer’s fault (unless it is - is it Boris??), and frankly a £15,000 pay rise is a lot in this day and age.

Cheeserton · 25/04/2022 23:50

Lost all sympathy at 'pay rise' I'm afraid. Jog on.

LazyJayne · 26/04/2022 00:03

A £15,000 increase that takes OP over the 40% tax bracket (say £35k to £50k) factoring in a student loan and an expected movement into the higher company pension contribution bracket (say 9% to 12%) leaves OP about £500 a month better off.

You can try it here: www.thesalarycalculator.co.uk/salary.php

If OP’s bills have gone up by £250 (which they might have done, mine have) and rent by £250 (possible) it’s very reasonable the increase has been completely swallowed up.

JingsMahBucket · 26/04/2022 00:24

Cheeserton · 25/04/2022 23:50

Lost all sympathy at 'pay rise' I'm afraid. Jog on.

What a terrible chip to have on your shoulder. How bitter.

EngTech · 26/04/2022 00:42

At least you did get a pay rise, company I work for have decided not to give any this year or last.

They are wondering why people are leaving and at this rate, there will be just the Security Guard left 😳

Numbers are increasing as Cost of Living increases 👍

carefullycourageous · 26/04/2022 06:19

The whole system seems broken, I'm worried about the political fallout because it is only a matter of time until people get really angry, surely?

You were lucky to have the payrise, but it has revealed the broken system.

Those without payrises are fucked!

JessicaBrassica · 26/04/2022 06:55

No actual increase for NHS staff but an increase in NI means take-home pay has gone down. And bills have gone up. I'd be grateful for the rise. It would be harder without it.

beastiev · 26/04/2022 07:02

This is a shit time economically for a lot of people in the UK.

It's really been a shit time economically since the financial crisis. Then we had austerity, Brexit, covid & now cost of living. I do think for young people things are going backwards.

Original poster
Clementinemist · 26/04/2022 08:56

I'm not entirely sure how people have worked out that my take home pay would be £1000 more a month with my increase because that is definitely not the case! Plus I have 9% minimum pension contributions and student loan repayments. And yes, having a pension is good, but doesn't help me put food on the table now. I also suspect most younger people now are not going to benefit from pensions in the same way as pensioners today anyway.

OP posts:
planetme · 26/04/2022 09:04

Ugh I feel you op. h got a pay rise recently, a decent one

However it's been eaten up by the bastard energy rises

Feel like we work hard for FUCK ALL - I don't want to say what we earn combined but it's a lot, or at least it would have been five years ago

It makes me so angry 😠

planetme · 26/04/2022 09:04

beastiev · 25/04/2022 21:20

Imagine where you’d be without the salary increase.

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

THIS

AllOfUsAreDead · 26/04/2022 09:11

You should be more annoyed at the rising costs. Think about who runs the country, who has upped our taxes while paying none themselves, and who is doing nothing about the increase in prices for energy and fuel. That's who you want to blame. And if you vote them in again, you cannot keep complaining.

Steamedhams · 26/04/2022 09:13

Honestly, I would be tempted to opt out of the pension, depending on how old you are. My husband and I are late 20s and have stopped these. We plan to use any extra money to invest ourselves in property/green energy etc. Very risky but we think by the time we reach retirement age that a) we will be about 85 and b) the bubble will burst and they won't be worth anything. Instead, we bought our own home and are planning on making improvements to it to up the value and looking at our own retirement plans as there have been plenty of pension scandals in the past. I have older friends who have lost a huge amount of money on pension pots.

And, in case it wasn't obvious, I am in no way a reputable source of financial advice!

Eggshelly · 26/04/2022 09:14

Aprilx · 25/04/2022 21:20

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

Exactly. Maybe look for cheaper rent, or a houseshare if you can't afford it.

Eggshelly · 26/04/2022 09:15

Steamedhams · 26/04/2022 09:13

Honestly, I would be tempted to opt out of the pension, depending on how old you are. My husband and I are late 20s and have stopped these. We plan to use any extra money to invest ourselves in property/green energy etc. Very risky but we think by the time we reach retirement age that a) we will be about 85 and b) the bubble will burst and they won't be worth anything. Instead, we bought our own home and are planning on making improvements to it to up the value and looking at our own retirement plans as there have been plenty of pension scandals in the past. I have older friends who have lost a huge amount of money on pension pots.

And, in case it wasn't obvious, I am in no way a reputable source of financial advice!

You'd loose out on the employers contribution that way

Eggshelly · 26/04/2022 09:17

Clementinemist · 26/04/2022 08:56

I'm not entirely sure how people have worked out that my take home pay would be £1000 more a month with my increase because that is definitely not the case! Plus I have 9% minimum pension contributions and student loan repayments. And yes, having a pension is good, but doesn't help me put food on the table now. I also suspect most younger people now are not going to benefit from pensions in the same way as pensioners today anyway.

That's your fault for going to uni not your employers.

MedusasBadHairDay · 26/04/2022 09:24

I got a payrise, used one of the salary calculators to work out how much more I should have after tax etc every month. It came out as roughly £200 more, which was a relief as the energy bills have gone up by £200. Figured it would at least cover those, but I'd forgotten to take into account NI changes.

I'm grateful for the pay increase, especially as NI and energy were going up regardless so I could be in a much harder position (and have been in the past), but it's still frustrating. Often feels like I'm trying to run up a down escalator.

Oblomov22 · 26/04/2022 09:25

I can't work out your calculations. What did you think the net pay was going to be?

Oblomov22 · 26/04/2022 09:25

I can't work out your calculations. What did you think the net pay was going to be?

Reallyreallyborednow · 26/04/2022 10:07

I'm not entirely sure how people have worked out that my take home pay would be £1000 more a month with my increase because that is definitely not the case! Plus I have 9% minimum pension contributions and student loan repayments. And yes, having a pension is good, but doesn't help me put food on the table now. I also suspect most younger people now are not going to benefit from pensions in the same way as pensioners today anyway

i got a 10k payrise and my take home is over £600 more so a 15k payrise is going to be nearing £900?

are you sure they haven’t got your tax code wrong with it being a new tax year/new job?

student loan payments are what they are so no point moaning.

if you don’t think a pension is a good use of your money you can opt out.

even if you were on min wage prior a 15k rise will take you to a decent salary.

it’s all a bit my diamond shoes are too tight. I am more than happy to get my meagre 10k rise, it’s taken me from paying the bills to having a little bit more room at the end of the month.

Reallyreallyborednow · 26/04/2022 10:07

I'm not entirely sure how people have worked out that my take home pay would be £1000 more a month with my increase because that is definitely not the case! Plus I have 9% minimum pension contributions and student loan repayments. And yes, having a pension is good, but doesn't help me put food on the table now. I also suspect most younger people now are not going to benefit from pensions in the same way as pensioners today anyway

i got a 10k payrise and my take home is over £600 more so a 15k payrise is going to be nearing £900?

are you sure they haven’t got your tax code wrong with it being a new tax year/new job?

student loan payments are what they are so no point moaning.

if you don’t think a pension is a good use of your money you can opt out.

even if you were on min wage prior a 15k rise will take you to a decent salary.

it’s all a bit my diamond shoes are too tight. I am more than happy to get my meagre 10k rise, it’s taken me from paying the bills to having a little bit more room at the end of the month.

Reallyreallyborednow · 26/04/2022 10:08

I'm not entirely sure how people have worked out that my take home pay would be £1000 more a month with my increase because that is definitely not the case! Plus I have 9% minimum pension contributions and student loan repayments. And yes, having a pension is good, but doesn't help me put food on the table now. I also suspect most younger people now are not going to benefit from pensions in the same way as pensioners today anyway

i got a 10k payrise and my take home is over £600 more so a 15k payrise is going to be nearing £900?

are you sure they haven’t got your tax code wrong with it being a new tax year/new job?

student loan payments are what they are so no point moaning.

if you don’t think a pension is a good use of your money you can opt out.

even if you were on min wage prior a 15k rise will take you to a decent salary.

it’s all a bit my diamond shoes are too tight. I am more than happy to get my meagre 10k rise, it’s taken me from paying the bills to having a little bit more room at the end of the month.

Reallyreallyborednow · 26/04/2022 10:12

I'm not entirely sure how people have worked out that my take home pay would be £1000 more a month with my increase because that is definitely not the case! Plus I have 9% minimum pension contributions and student loan repayments. And yes, having a pension is good, but doesn't help me put food on the table now. I also suspect most younger people now are not going to benefit from pensions in the same way as pensioners today anyway

i got a 10k payrise and my take home is over £600 more so a 15k payrise is going to be nearing £900?

are you sure they haven’t got your tax code wrong with it being a new tax year/new job?

student loan payments are what they are so no point moaning.

if you don’t think a pension is a good use of your money you can opt out.

even if you were on min wage prior a 15k rise will take you to a decent salary.

it’s all a bit my diamond shoes are too tight. I am more than happy to get my meagre 10k rise, it’s taken me from paying the bills to having a little bit more room at the end of the month.

Mia85 · 26/04/2022 10:19

Steamedhams · 26/04/2022 09:13

Honestly, I would be tempted to opt out of the pension, depending on how old you are. My husband and I are late 20s and have stopped these. We plan to use any extra money to invest ourselves in property/green energy etc. Very risky but we think by the time we reach retirement age that a) we will be about 85 and b) the bubble will burst and they won't be worth anything. Instead, we bought our own home and are planning on making improvements to it to up the value and looking at our own retirement plans as there have been plenty of pension scandals in the past. I have older friends who have lost a huge amount of money on pension pots.

And, in case it wasn't obvious, I am in no way a reputable source of financial advice!

I'm not sure what you mean by your own retirement plans but this could be a very expensive decision. Pension contributions in your 20s are much more valuable than those later in life as they have decades to compound. You are also likely to be missing out on employer's contributions and tax relief. Do make sure you really understand the implications of your decision.
There have been awful pension scandals in the past but the regulation of pensions has chaned massively in response www.moneyhelper.org.uk/en/pensions-and-retirement/pensions-basics/how-safe-is-your-pension

Mia85 · 26/04/2022 10:20

Steamedhams · 26/04/2022 09:13

Honestly, I would be tempted to opt out of the pension, depending on how old you are. My husband and I are late 20s and have stopped these. We plan to use any extra money to invest ourselves in property/green energy etc. Very risky but we think by the time we reach retirement age that a) we will be about 85 and b) the bubble will burst and they won't be worth anything. Instead, we bought our own home and are planning on making improvements to it to up the value and looking at our own retirement plans as there have been plenty of pension scandals in the past. I have older friends who have lost a huge amount of money on pension pots.

And, in case it wasn't obvious, I am in no way a reputable source of financial advice!

I'm not sure what you mean by your own retirement plans but this could be a very expensive decision. Pension contributions in your 20s are much more valuable than those later in life as they have decades to compound. You are also likely to be missing out on employer's contributions and tax relief. Do make sure you really understand the implications of your decision.
There have been awful pension scandals in the past but the regulation of pensions has chaned massively in response www.moneyhelper.org.uk/en/pensions-and-retirement/pensions-basics/how-safe-is-your-pension