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Salary Adjustment

August 28th, 2020 at 12:54 am

The organization I work for is funded largely by state tax dollars. Obviously, the Covid situation will result in fewer tax dollars going to the states. Leadership at my organization has decided, rather than layoffs, to reduce everyone's salary, and reduce the amount they contribute to retirement.

The salary adjustment is on a sliding scale that ranges from a 0.5% cut to an 8.0% cut, with lower salaried people receiving a 0.5% cut, and the highest salaried people receiving an 8% cut. My salary is in the range where there is a 1.0% cut, which amounts to about $52 per month. If you want to do the math, you can now figure out my salary. Wink

The amount that is contributed to our retirement has been cut in half, regardless of salary.

It's been clear since March that something would have to happen, and I prefer this method over layoffs. Everybody bleeds a little, rather than a few on the chopping block.

The changes go in effect September 1. Our fiscal year begins October 1, and that is historically when we are given our raises. I can't imagine anyone will be getting a raise this year, or that will wipe out the gains of this negative adjustment.

All in all, I'm happy to still have a job.

4 Responses to “Salary Adjustment”

  1. terri77 Says:
    1598644098

    Like you said, it’s good that you still have a job. Fingers crossed that you get a raise that mitigates the pay cut.

  2. VS_ozgirl Says:
    1598748185

    That seems so fair in these hard times and it is good that they are so transparent. Much better to take a small financial hit than have to find a whole wage again (if you lost your job).

  3. Fern Says:
    1598794592

    I agree, I'm grateful to have a job also. It's nice that management is trying to take a responsible approach and not just laying off in a kind of knee-jerk reaction.

  4. rob62521 Says:
    1598902927

    You have the right outlook. Better to hurt a little instead of being laid off. Hope things pick up and work out and you get the money back.

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