My job just gave me a sneaky pay cut and I’m ticked off. 
Our annual reviews were last week and despite another great year on my behalf and several letters of appreciation sent in by my actual customers directly to my boss, I was given a “generous” $750 a year raise. Granted, that’s better than the salary freeze of the last 2 years, but not much…
Then we were reminded to sign up for our medical benefits for 2011. I posted my two options yesterday for your vote. This will be the first year that basic coverage won’t be free!
The high deductible plan would only run me about $300 a year with dental and vision, but the plan I’m most probably signing up for is about $1250 a year. That plan allows me to have a $25 copay for doctor’s visits and a $75 copay for 3 months of my medicine instead of covering all those costs 100% out of pocket for the first $2750 and 80% out of pocket for the next $3000.
That means two things:
1) I am still making less than the $36,000 a year I was expecting to start at in 2005. This “raise” brings me to a salary of $35,750 before taxes.
2) My 2 year salary freeze has been followed by what amounts to a $500 pay cut! Even if I go with the cheap plan and put $5750 aside for the high deductible, that cuts my “raise” to less than $15 a paycheck after taxes!
I am beyond mad. I was already job hunting, but this has kicked it up a notch. Anybody hiring a customer service rep in the north part of Houston? 
I am seriously trying to find anything that would make me happier even if entails taking a pay cut. You can see that at my staff writer post today, Would You Take a Pay Cut for Happiness?, at Sweating the Big Stuff.
I’m also stepping up my SEO skills for blogging since I want to blog full time more now than ever before!
Have you fared better or worse this year? What do you think of my particular circumstances?
Also, if you want to read more from me, check out my guest post, How I Deal With Criticism, at The Kitchen Sink!
Well, higher education is gearing up for a 35% cut on top of the previous year’s 26% cut….
Ours is worse. No raise and the health care plans at minimum will cost $2,000 out of pocket more than they did in the previous year.
Sounds horrible. Something like this happened to me when I got a “raise” and was subsequently bumped up to the next tax level, and made less money as a result.
I’ll recommend making money thru this blog, or finding alternative sources of income.
Unfortunately, this story is being heard across the country. Everyone seems to be getting killed by healthy insurance costs, and pay raises are few and far between. We currently pay 600 a month for our employer-sponsored health insurance and just found out it will be even more next year. We also haven’t had a raise in over 2 years. It is a bummer for sure.
Go find that new job my friend!
We had a salary freeze this year (but thankfully not a furlough like FS and many folks). Our bursaries have been cut. Benefits are a little more expensive last year, but the increase has been about the same each year since I started. The cost of health insurance has been going up for a long time and my university has been eating half that cost and letting us pay the other half. (Technically my “total compensation package” has increased, even if my salary hasn’t.) They did improve some coverage– eliminated some exclusions this past year so at least it’s slightly better coverage this year. In the past it’s been benefit cuts on top of cost increases.
I hear Exxon is a great place to work.
My salary has also been frozen for the last two years. Not only that but across both divisions I handle, we increased net profit this year. Yet, I’ve been informed that I’ll also be getting a bonus cut and that health insurance is going up, all while in the background, I managed to reduce our chargeoffs to a mere 0.00126 percent through intense collection efforts on my part.
When you consider how much TRUE inflation is eating up in food and energy costs, I’m making less than I did in 2003, despite having those little pittance raises for several years.
2 year pay freeze and was supposed to have a pay raise end of October. Got nothing. Now health care renewal is going to increase, have not looked at how much yet but I know it will be at least that much as well. It sucks and I am tempted to look for another job as well, just not sure anywhere else is doing more. I think companies are loving that they have an excuse to not give anyone pay raises even if they are not justified.
@Henway: Getting bumped to another tax bracket will not mean a lower take home. If you did see a lower take home it was due to something else. The higher tax bracket is only applicable to that earned over the amount above the limit. The tiered tax bracket prevents that from happening.
@frugalscholar, pretty soon they are going to expect you to pay them to work…
@Money Beagle, ouch. Sorry.
@Henway, yeah…I’m thinking of getting a part-time job at $8-$10 an hour, combining that with my blog income, and quitting my full-time job…
@Everyday Tips, I have an interview with Edible Arrangements this Friday, lol. That could be fun…
BTW, you pay $600 a month for insurance?! OW!!!
@Nicole, I’ll look into Exxon…
@Ron, yeah, it REALLY ticked me off when I found out that we had a much better year and they even put an additional $2 million of advertising into a sponsored race car…
@philip, if you find something better, shoot me an email, lol. Good luck.
Strangely enough, our university did this to us in graduate school!! All grad students (PhD students, so we were paid to research/teach while in school) had the same stipend and benefits. They made a big deal that they were raising stipends by a few thousand dollars, and simultaneously raised graduate student rent by more than 10%, meaning we all actually took a loss. (Housing off campus was far, far too expensive, so virtually 100% of grad students were living in university-owned housing). It’s very sneaky and underhanded when organizations do this. It can’t be good for employee morale or productivity.
@Valerie, I can’t speak for all employee morale, but this specific employee is contemplating taking more hours for less pay somewhere I actually like rather than continuing here…
That’s really tough. I know first hand from my past how things like this can happen. The reality is that pay freezes, salary cuts, and job losses are happening everywhere. It’s tough out there, so I (and others) can relate on some level.
I’ve heard secondhand of instances where employees were asked to take paycuts across the board, take less money for a short period of time (like 52% of their salary for 6 weeks, or something of the like), even to not work for certain times – thus meaning no income.
I recall years ago being told that pay raises were on hold for 6 months….which has a ripple effect that extends over time, as your subsequent year raises would thus be delayed as well. Annoying and costly, no doubt.
Sounds like you’re good at what you do. Maybe with your track record of quality work, you can get some really good references, and move on. Or, you can keep us happy by blogging more:)
Anyway, I suspect that you’ll make a smart, informed move whatever you do.
That definitely stinks. Unfortunately I have the worst story nearly doubled. My family plan (which is the same price if you have one or five kids – some have five, I have one) is $1,079.66 per month! Dental is another $36 per month. And “vision,” is another $10 per month. I think I’m cancelling vision next year. I never used it and have no idea what it does. Plus none of us wear contacts or anything yet.
Keep your head up though. Sneaky pay cuts stink. But don’t let it get in the way of kicking butt!
Unfortunately, I work for a State University, so I feel your pain. We haven’t gotten a raise in a couple of years – even though it’s in our union contracts! I understand the idea of not having the money, but since I work in finance I see all of the waste that goes on!
Definitely not happy – but I am thankful to have a job, since we have so much debt!
I figured that this would speed up your timetable for full-time blogging.
I interviewed for a job that would have been a $5000 pay cut if I got it. I didn’t get it, and I probably wouldn’t have taken that steep of a pay cut, but man oh man, I reaaaaallly considered it…
@Squirrelers, I may just continue to get by at this job until I can blog full time. I rather not work at a job that I don’t like, but I don’t hate it either…maybe it’s exactly what I need to kick blogging up a notch, lol.
@Nick, you poor thing!!! You pay more for health care than I get paid every 2 weeks!!! I’m hoping that means you make way more than me, but that amount would make me sick anyway. You have my sympathy.
@Khaleef, lol, yeppers. I’m not sure if I can possibly blog full time before January 2012, but I am certainly going to try!
It would kill me to know all of the money being wasted and then to be told “no raise for you”. Good luck.
@Newlyweds, I’m glad I’m not the only one thinking about it. The difference between what I make and a $10 an hour job for 40 hours a week is about $15,000 a year and yet…it looks tempting…
I don’t have all the details yet, but it been stated as a moderate Health care increase for me at work with a cost of living increase for salary. Think its going to be a wash. Sounds better then what some of you are experiencing.
Ha! Yeah, I do well. “And/but” I work in NYC and live right outside in NJ, so all numbers here are messed up! The total cost of my plan is about $1,800 per month, so my company pays about 40%. I’m not really “complaining.” I’m certainly blessed. But for a guy who eats PB&J to save $5 per day on lunch, that’s a lot of money no matter how much you make!
Hopefully the price means I’m getting good health care… So far I’ve had only a few complaints (mainly relating to the general incompetencies and inefficiencies of the whole industry).
I find it hard to believe that there isn’t a cheaper alternative that is just as good as mine though… I’ll have to shop around.
@Techbud, I hope you come out at least a little ahead. Good luck!
@Nick, I get that. Like I said, it would be hard to accept even if I made quadruple what I make now, lol.
My husband pays $50-$60 a paycheck and has just as good or better coverage than me. I think it all depends on the company and their deal with the insurance company.
I do wish the system made more sense. When I saw that a 30 minute “surgery” (pretty much a wound cleaning) cost more than $3000 before insurance, I knew something was wrong with the picture…
Good luck job hunting. Make sure you update your LinkedIn profile!
Unfortunately I think this is a very common situation. Most employers are raising employee insurance costs. When I started 14 years ago our “good” copay insurance was free for a single person with just a $10 copay and that was it. Last year it was $950 now it costs $1000 a year. For a family of 4 it went from $5500 to $6000.
Hi, first time posting but I’ve been reading/lurking for a few months.
$300 for the YEAR!?!?! OH WOW, I am so jealous even though I know you aren’t.
Coverage for just me and my husband is over $800/month. A family plan is over $1300/month. My company contributes a “whopping” $200/month, regardless of how long you’ve worked there, or how many people are on your plan. It’s been $200 since I started 4 years ago. We have married couples at work who are still on individual plans because it’s cheaper.
My gross check every 2 weeks is $1500, but I only take home ~$815, after the insurance is deducted, and taxes, and a measly non-matched 401k. Sad. And disgusting. I live in the Northeast, where COL is much higher, so…it doesn’t go that far. We’ll be eligible for my husband’s company’s health insurance next year–hopefully their plan is better. It’s definitely cheaper, as in payroll deduction, but who knows how much we’ll have to pay out of pocket. At least the plan we are on right now is VERY GOOD, but it’s a lot of money every month that I’d rather be putting elsewhere.
Blogging full time would mean more stories for us to read..yippee..so I’m glad you’re ticked.(not really but kinda)
In my opinion, the sooner you go to full time blogging, the better. But that’s just my selfish opinion of the situation.
Our premiums all went up too. Not sure when my raise will be..not til next year.
I got a small pay raise (as a grad student every little bit counts), but it about equaled my health insurance rate increase. I am happy just to break even after all of the health insurance horror stories I have heard from friends.
By the way, don’t expect any relief in the health insurance department any time soon. The projections are that the federal health care legislation will do nothing to decrease costs for those folks who have insurance.
@Jenna, definitely. Thanks!
@jim, yeah, I knew I wasn’t going to be one of the ones that had it the worst, but I still felt like whining…
@Rabbit, that is awful! I’m sorry you have to make so little stretch so far! I do hope your husband’s plan is way better for you all next year!
@First Gen American, I want to have more time to blog with you all too, so I guess having extra motivation is a good thing.
We will see how fast I can build this baby up, lol.
@AJ, in my experience, even if new legislation came along to help, businesses usually don’t back peddle to cheaper anything anyway, lol. I wasn’t expecting any relief…just need to get a job that makes me happier I guess.
Thanks for your reply, and I hope so too! It was a stupid bad timing thing w/ his open enrollment vs. mine.
Since my pay stub just landed on my desk, I thought I’d post for giggles:
Deductions
Fed: 47.58
OASDI: 65.65
Medicare: 15.35
State Tax: 41.50
401K: 75.00
Pre-Tax Health Insurance Copay: 441.13
Checking: 813.79
Yes, health insurance is my biggest deduction…when most people would have taxes as their biggest deduction. I do live in a town with pretty high property taxes, but nope, health insurance is more! Aggravating. This is also why we’re holding off on having a family until we can get this expense under control. We have NO debt besides our mortgage, and we are pretty frugal. The fact that we have very little control over this drives me UP. THE. WALL.
Thanks for the venting space!
@Rabbit, it would drive me up the wall too! You’ve also inspired me to post my check stub totals (it’ll be next week). You and I get paid about the same, yet I take home $200 extra bucks…that is just wrong!
Last year I left a well paying job for one where I took a 20% paycut. I was there one month when the owner fired my supervisor, put me in that position and cut my pay by 10%. It baffles me why companies do things like this. I stuck it out for a few more months before I quit but I was not a happy camper.
Good luck on the job hunt!
That does suck!
My insurance is going to bit this year too. I’ve been procrastinating looking through the materials (but I better quickly though)!
Good luck on your job search!
@Molly, well, that just stinks! What a freaking bait-and-switch! Hope you are happier now!
@Money Reasons, thanks. Yeah, take a look at your benefits! My husband and I both had to sign up by today or we wouldn’t be covered in 2011…
Yeah it sucks all around. I’ve been frozen for 2 years and now I have longer hours so in effect I make less per hour. No raises either, but now I’m doing the job that my senior manager 2 levels above me used to do. But like I said, hang on to your job with a death grip if you can. Than when the economy gets better, slowly release the middle finger into the New York salute as you swing to the next job.
Crystal, what a bummer!
I know it’s hard, but you need to keep working hard and keep a positive attitude! The good news is you have a job. In the meantime, I would be sending out lots of resumes and seeing what else is out there – aside from full-time blogging.
About 12 years ago I finally (and reluctantly) left my previous employer of ten years because I was getting paltry raises for a few years. I sent out lots of resumes and landed a much better job with a huge increase in pay.
Best,
Len
Len Penzo dot Com
I haven’t had a pay raise in 2.5 years, what started out 18 months ago as a bi-weekly unpaid, furlough day, six months ago became a weekly unpaid, furlough day. And up until 3 months ago, even though my employer pays 100% of my health ins premiums, my deductible was $3000. @@
Thank you for writing a guest post for me while I was away.
This is horrible news! We also had a pay cuts and our insurance went way up. This year our insurance is up again and no raises. I am just happy to have a job!
@Sandy, LOL. Thanks for the great advice and visual!
@Len, thanks. I will keep sending resumes like a crazy woman. We’ll see what happens.
@ME 2, I’m sorry – that’s awful. To look on the positive side (which I am really trying to do lately), what do you do on your forced day off? I wonder if I’d be a happier person with a voluntary 4 day work week…furloughs stink.
@Aloysa, I know I should be happy just to have a job, and I guess I am happy for the money, but it’s hard to be thankful of a position that makes you feel bad…
In the government (where I work), we say “the government gives with one hand, and takes with the other”.
Sorry to hear this!
@Amanda, that’s what teachers say too, lol.
My girlfriend just got a real paycut and the company just had 1/3rd of its workforce slashed. I’m not sure if she would prefer to have been a part of the slashed employees or not…
Check out Travelers
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email me with your resume if you would like to apply, I’ll put it in our internal application system.
http://www.travelers.com/about-us/careers/job-search/index.aspx
-> then click Search Current Opportunities
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