Tuesday, July 19, 2011

Pay reduction

Well, it's even worse than I anticipated. Not only will I continue to work without a raise in pay, I actually got hit with a slight pay reduction. All this time I'm taking on more job duties and getting no pay increase. Now, I get a reduction in pay. Talk about kicking someone when they're down.

"How did this happen?" you ask. I'll try to break it down for you.

The state wanted to save money and make their budget look good. So they decided to stop paying the emplyee's share of the Virginia Retirement System contributions. That amounts to 5% of pay. They were going to shift that responsibility over to the workers. As part of that they would give a 5% increase in pay to all existing state employees. Future hires would just be expected to pay the contribution from the day they start.

Now, I didn't like the idea from the get-go because I know in a few years time (when I still haven't received any increase in pay) they'll claim I got a raise and that I don't need another in these "hard times." Technically that would be correct. However, my net income isn't increasing, so it's backhanded to say something like that, but say it they will.

In fact, what actually has happened is that I'm now taking home about $10 less per paycheck than I was previously. I didn't bother doing the math beforehand because it didn't occur to me how it would change my withholdings, tax rates and other aspects of my check. Now I'm looking at a check stub that is about $10 less than before. So, I now take home $20 less per month - I have over $200 less spendable income each year.

Goods and services are going up already and my pay is slightly decreasing now too!? All this time I'm being asked to do more with less and be happy about it. Well guess what, I'm not! I have to wonder how long it will take for a real revolt to form in these conditions? I'm just saying.

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