How Many Pay Cuts?

[martyp]

I took an expected pay cut in 1982-83 when I went to Grad school but I was working fewer hours too. Otherwise no pay cuts to the very end.

 

[REWahoo]

Only one but it was huge - a 50% cut in pay and benefits when I left the military in '78.

I took an entry level management job in an effort to stop the constant transfers I'd experienced in the military (I averaged a change of duty station every 14 months over an eight year period). The company transferred me six months later...

 

[rodi]

I went to a 60% schedule after the birth of my oldest... But had to bump it up to 80% when I transfered locations. This was all voluntary.

In the past 8 years salaries have been virtually frozen... One 1.5% increase 4 years ago and 2% last year... So salaries have definitely fallen behind.

Lost the ESPP benefit 2 years ago due to corporate acquisition.... That was a 1.5% cut. Should get that back next month under the latest corporate overlords.

Health benefits were refactored to shift more cost to employees... That was a virtual pay cut.

Frozen pension in 1999, combined with reduction in 401k match.

 

[Meadbh]

I had a pay freeze many years ago when I was a resident: they stopped paying overtime (which was mandatory and amounted to approximately 40 hours per week). I had a pay cut followed by a freeze about 20 years ago as a young academic physician, but it applied to university money only, so it was not a huge deal. I took a pay cut again to move to my last job. The pay cut was supposed to be less than 20% but it turned out to be more like 30% because certain streams of income did not materialize. Finally I had the great RE pay cut, but at least I am getting more enjoyment out of life for my money!

I didn't count two pay cuts that I experienced because of strategic decisions I made to further my career. So that's six pay cuts in all. For the last 20+ years of my career I was an independent contractor. More volatile than being an employee, no guarantees, few benefits, no pension.

 

[superdave]

I was an SAP consultant during the roaring 90s. Salary has been downhill since the glory days. Uncompensated overtime, something that didnt happen in the 90s, is commonplace today. Won't miss IT at all once the plug is pulled.... any day now.

 

[brett]

At Megacorp, they reduced compensation over a number of years through various actions. There was a temporary 5 percent pay cut, 10 percent for me. It was adjusted back after a year or so.

But the real cutbacks were not salary increments, or increments that did not come close to inflation.

Benefits, or salary burden as we called it, was reduced from something like 1.44 down to 1.26. (ie the total wage cost per $1 of salary was $1.44 when the cost of company benefits was added). All benefits were slowly shaved, including vacation and pension.

In the US, some employees were 'reclassified' downwards. They were given a choice, take a permanent salary reduction to reflect this so called reclassification or resign. Labour legislation prevented Megacorp from doing this in most other countries and certainly countries that would be called the developed western world.

 

[Texas Proud]

At Megacorp, they reduced compensation over a number of years through various actions. There was a temporary 5 percent pay cut, 10 percent for me. It was adjusted back after a year or so.

But the real cutbacks were not salary increments, or increments that did not come close to inflation.

Benefits, or salary burden as we called it, was reduced from something like 1.44 down to 1.26. (ie the total wage cost per $1 of salary was $1.44 when the cost of company benefits was added). All benefits were slowly shaved, including vacation and pension.

In the US, some employees were 'reclassified' downwards. They were given a choice, take a permanent salary reduction to reflect this so called reclassification or resign. Labour legislation prevented Megacorp from doing this in most other countries and certainly countries that would be called the developed western world.

A rate of 44% seems high.... also, where I worked vacation was not part of the burden.... IOW, it was 'salary'.... some days you took off, most days you did not...

The company where I worked was 16%....