To take less hours for same pay over payrise?

[LauraFlex]

I’m due off maternity leave in 3 weeks and been notified I’m going to get a 22% pay rise from Jan.

DH and I are currently now in a disagreement regarding what to do.

I want to drop a days worth of hours and send DD into nursery for 4 half days, as this way I will get the same salary I currently do but less hours of work for it, plus I’d then get to spend more time with DD.

DH thinks we should continue with the current plan which is me returning for a 4 day week (condensed hours) and benefit from the pay rise.

DH also does a 4 day week so DD only goes to nursery 3 days at present (she has started before my return to work)

Nursery fees are slightly less with my plan but not enough to make that much of a difference in the decision making process.

So

YABU - take the pay rise

YANBU - work less hours

Do you need the additional money?

If not - I personally would drop down to 4 days a week. When my DD was tiny I worked part time and it was really useful.

I would take fewer hours, personally. It's trickier when you have joint finances and all is counted as "family" money. Essentially, neither of you are then in control of your own finances and decisions. We chose a separate finance approach where we contribute what's needed for the running of the household but have separate savings, investments and spending money. So we are free to make independent financial decisions.

@Motnight we don’t ‘need’ the money but we have a few things we want to do with the house in the very near future so I think that’s where DHs mind is at.

Plus our mortgage is going up £400 a month from December, so although it’s not a need it would be handy.

I’d only do it for a year or so but am genuinely torn head vs heart

I was always about time, but everything is so expensive now.

Is the decision whether or not you do 4 long days (ie a full time job condensed into 4 days, not 5) or 4 shorter days (ie less then full time hours in total).

I think I'd take the latter long term. Condensed hours are not for everyone and can make the day very long indeed. However, I'd be open to doing the full time for a set period of time and then reviewing.

Hmm, it’s difficult but I’d probably choose the money, especially with your mortgage increasing.
4 days condensed on full pay would still leave you with an extra full day with DD if you were happy to do that. I’m team DH!

@CobwebsAndCauldrons yes

so either it’s 35 hours split into 4 days

or I’d do 28 hours across 5 days

@Hearmenow23 I was looking at our food shopping history earlier and the amount stuff has gone up by even in a year has been shocking.

it’s definitely playing on my mind, don’t get me wrong not spending £96 a month on formula will help once DD is 1 but that’s a drop in the ocean compared to how much basics have gone up by!

ifs definitely a head vs heart decision

As you say you only want to do it (I think you mean the reduced hours) for a year or so, my main concern would be that your employer doesn't have to let you return to full time afterwards. Whereas if you start with the condensed hours, but find it's not working for you, it would likely be much easier to drop down.

£400 is a lot...
And my experience is 4 days is 4.5 or 5 days... So on that basis I'd take the money
BUT...

if for a year you could take 4 days and it's actually 4 days and then was able to go back up to full pay I prob would do that - best of both worlds.

Can't you do 28 hours spread across 3 days? DH works 4 days so you get to keep nursery at 3 days and get a day to yourself.

Cutting hours and putting DD into nursery 4 days instead of the current 3 seems odd unless you're really struggling with everything

I'd definitely take the pay rise - 22% is a huge rise and not one you're likely to be offered very often!

And if your mortgage is going up by that much, surely it's a no-brainer?

I'd prioritise the additional time over the money whilst DD is small. Once DD goes to school you can always go back to 4 full days. I'd suggest that to DH.

Go for the money in these uncertain times
I was caught up in the massive interest rate of 13% years ago so made me very cautious about money and what could happen

DH answer probably has a factor of resentment in it as well tbh we’d all like to reduce our hours but doesn’t look as though that’s an option for him

How much is the pay rise on real money? 22% of 150k is very different to 22% of 25k. Do you hot new tax or student loan thresholds? What's the monetary difference between the two options for nursery?

Halfway in-between. 4 normal days without condensing.

Also what does that money buy? Your mortgage is going up, food is too but could you afford a cleaner say for a few hours to balance out the choices?

@SleepingStandingUp now that is an idea!

Hmmm tough one

Will the payrise change your tax bracket, child benefit, student loan etc

do you have additional help e.g. who has her on days where she is sent home from nursery, to sick to attend? If you are juggling this between you and DH with no outside help then extra money would help for days you may have to take unpaid.

Do you think you'll have more children and have a work place Maternity package in which case higher wage would assume better benefits for next mat leave

I'd be tempted to accept the pay rise now whilst you may still be paying for nursery fees for a while and then reassess

Alternatively is there a middle ground

@Caszekey

The extra money would go towards an extension and bits around the house we need to do in the short ish term. We were looking to move into a larger home but with mortgage rates at the moment we are leaning towards trying to adapt our current home to fit out current lives instead of moving.

cleaner etc, we already have so it wouldn’t make any difference in the day to day

The questions from @Birch101 are key here.....does the pay rise put you up a tax bracket or move you in to the 50-60k earnings window? (Within the 50-60k window you start to incrementally lose your child benefit)

@Birch101 very good points

which my heart decision making mind didn’t really consider!

It wouldn’t put me in a higher tax bracket and we don’t get child benefit so that side is fine, no student loans etc.

the days off is a big one though, as we live far from family and will juggle the days sent home sick between us. Which yes the extra pay will help from the unpaid time off, although for short term illnesses we’d work and care for her (both employers are very flexible)

will have to raise the days off thing with DH too as I don’t think he considered that either, although it will only help his side

@44PumpLane we don’t qualify for CB anyway so it’s not a factor

I was just going to say the same as a previous poster, 22% sounds a lot but depends on your current take home pay, will student loans and pensions be deducted. And are you paying the higher tax rate, will it affect child benefit etc. I would try find an option where you’ve got a whole day free with the little one. half days will be taken up by a nap for some of it and back and forth doing drop-offs etc if nursery days. if you have a whole day you can plan to do something nice each week

@Tryingtokeepcalmandcarryon id keep just under the 45% tax bracket so it wouldn’t impact my tax rate thankfully. No student loans to consider.

The half days would mean she would have her nap at nursery and then we’d get either the morning or afternoon together. I was thinking this way as I’d then get more time with her but not have a whole day of mindless child watching