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?

That's very kind of you. Not many landlords would do that. Mine is using inflation as an excuse to charge us more.

The concept of career and life progression now seems to be dead?

More stalled, I would say because of a perfect storm consisting of the effects of the pandemic on education and businesses, slow global economic growth, rising inflation, and now the war in Ukraine. Stagflation, here we come!

check your tax code !!

@Clementinemist what did you earn (after tax) each month in your previous job vs new job?

Unfortunately you are not going to get much sympathy here, as people are struggling on £15k full stop, never mind a £15k pay rise.

If what you are you saying is true, then your predicament isn't really something many on here can relate to . I'm assuming you earn £50k + and this increase has propelled you into the highest tax bracket , and that you have a big house so the utilities bill increase affects you more.

I appreciate that the intention of your thread is to wonder how others will manage if this has happened to you

@Ohwellnevermindthen the pandemic has heaped on the woes but this was all coming regardless. Look at our productivity

There's a slight misunderstanding from a lot of people here.
I'm not angry about my salary. I'm just disappointed that a payrise is now worthless in the current cost of living situation.

And if I didn't go to uni haha. Should I have gone down the mines at 12? I work for the NHS, and last time I checked a solid majority of medical jobs require a degree.

Do a quick google of PAYE tax calculator and you will see that you cannot have an increase in wages and take home less money.

The same thing has happened to me as it's taken me into the higher tax band & higher pension contribution.

Should I have gone down the mines at 12?

Basically yes according to some.

I think you need to ignore a lot of the replies OP. Yes, you're very lucky to get such a good pay rise, but you're also not unreasonable to be disappointed that cost of living increases mean overall you're still worse off despite that.

As I said upthread, if the world made any sense a payrise of that magnitude should mean you have more discretionary spending power, not less.

It's a damning indictment of how messed up things are that such a big payrise still doesn't actually improve your life and it's scary what that means for people in the UK, most of whom won't be getting any pay rises!

Everyone assuming op very well paid

she could have been on £15k and then made a jump to £30k

either way - I am concerned that the Op seems utterly financially ignorant despite being “professional”.

who accepts a job without working out additional expenditure, tax etc against any increase in salary and is then “gov smacked”

either way - I am concerned that the Op seems utterly financially ignorant despite being “professional”.

🤔

@diamondsf

if you accept a new job offer that comes with sizeable increased expenses and also an uplift in salary…. Would you not do a teeny tiny bit of basic maths beforehand to avoid being “gob smacked” at your first pay cheque?

I dont get how your bills could have increased by £1k a month even with the cost of living rises. Unless you are now in a higher tax bracket, have lost benefits, moved to new accommodation. Or made some other big change.

Well I'm sure when the OP accepted the job she wasn't fully sure what the NI tax increases actually were (the gov certainly played it down). Nor the impact of the cost of living crisis which is changing rapidly.

Regardless it's not a reflection of how well she can do her job. Plenty of people don't even look at payslips!

I’m not least bit surprised
if you don’t do any financial planning at all
not at all surprising that you take on an overpriced flat etc

This is her first pay
Started a month ago

Spare a thought for everyone who has not had a pay rise in years and still has to pay all the increases in bills! At least you're covered...

I dont get how your bills could have increased by £1k a month even with the cost of living rises

The OP never mentioned a loss of 1k a month, someone just guessed this was the figure. Someone who likely doesn't understand tax.

So….

accepting new job
new flat
new utilities etc

and you honestly wouldn’t do ten mins of working out what your take home after bills would be?

I would because essentially my job is finance & tax but my point is the OP not doing that or miscalculating isn't a reflection on how well she does her own job.

new flat

where did the OP say she moved?

new utilities

I was certainly gobsmacked when I saw the new fixes I was offered.

The salary itself is irrelevant because without the increase she would have been worse of. The cost of living going up is the point.

If this is her first pay then how come she has had a £15k rise. That would imply her previous job had a salary of £15K less. Not that she was unemployed before this. Bit confusing to say the least.

I know, this is just how I feel. Life just seems an endless grind to stay out of debt, keep food on the table, and a roof over my head.

ok I missed this
are you single?
I am guessing previous job was very low paid and…
£15k increase just brings up to average

Just done a few calcs on salary calculator. Taking student loan payments based on plan 2 and pension deductions of 9%
Based on salary of £30000 prior to the new NI rises net pay would be approx £1800
On a salary of £45000 same deductions net pay would be £2419 will be more come July so difference in take home of £619pm approx
Obviously if you're now a higher rate tax payer then it won't be as much
But if you're now £150 a month worse off that means your outgoings have gone up by about £850 a month which is crazy
Are you sure you have been taxed correctly?
We have 4 children and high energy bills and both had an NI increase and petrol and food etc but our outgoings haven't gone up even close to £850 a month

For people saying she should have worked out her take home pay before taking the job you do realise she would have been paying the extra NI and the higher bills even on her old pay so would be even worse off.

Still think you need to check your tax code.