Stay in current work position or change to a more local position with paycut?

S

Sowen

Guest
Would like to get your opinion on the following situation?
I am due to return to work after maternity leave shortly (I have a 1hr 15min commute to work); however I like the job, have company vehicle, pension, Health insurance. I'm now faced with not seeing my child Mon-Fri due to the hrs I work ontop of the commute he'd be just getting up as I leave the house in the morning and just in bed when I'd return in the evening.
I was successful with an interview and offered a position locally (30 min commute), a more senior position than I'm currently in but the money is 10k less and no benefits.
Myself and my husband are trying to work out what is best choice for us financially; we are currently being taxed assessed as single despite being married. Am I correct to believe we are better off being assessed as single rather than married based on a dual income of 68k. If I were to accept the more local role to have a better quality of family life, we would then have annual income of 58k, minus company vehicle, pension, vhi.
- Married assesment Annual Take Home based on dual income of 58k (after Tax, USC, Prsi): €48,510.72
- Single assesment Annual Take home based on dual income of 58k: €52,108

- Married assesment Annual Take Home based dual income of 68k: €55,906
- Single assesment Annual Take Home based on dual income of 68k: €58,038

Do I choose heart over mind and bear the brunt of the wage cut to have a family life? My income is the greater of the two though. Any advice/opinions is welcome.
 
I dont think that it makes sense that you would pay more tax if assessed jointly as a married couple. Where did you get those figures ?

You have only given your joint income. What do you each earn ?
 
Thanks for reply, I currently earn 40k and my husband 28k; I got figures on a budget 2011 tax calculator site.
 
Life is too short, and you child will grow up so quick. If you can afford to take the reduction I think you should go for it, the benefit of seeing your child will far outway the monetary loss.
 
Have you factored in the reduced commuting costs and reduced childcare costs with taking the more local job ? I would also work out what you think the extra 7.5 hours a week, that you will have gained, are worth?

Then compare all of this to your current situation. If the monetary difference is not that great then I would tend towards the local job.

Also, if you ever decide to increase your family you will be faced with this situation again but with even more pull to stay local.

You say the role is more senior but with less pay. It might be good for your career to have the experience in such a role should you decide to move on again in a few years.

Don't be emotionally blackmailed into 'being there' for your child. Your decision is for the future good of your family overall. Kids are adaptable and will adjust to any situation. It would be great if we could all work 20 hour weeks and walk 5 mins to walk...

Best of luck with whatever you decide.
 
Have you negotiated with your employer on some of the changes to your package proposed for the more senior role? You should cost each of the elements of you benefits package and make sure you are aware of all the implications of the trade down and that your employer knows you are too - you could be losing another 10k with the loss of the vehicle, pension and insurance - are all vehicle costs eg fuel and insurance also paid? this could be very costly to pay yourself given an hour commuting each day

To me it seems like your company are being a little opportunistic here - you are taking a very significant cut and combining it with a move to a more senior job... smells a little wrong to me? are they playing on your heartstrings?

Is there any other room for negotiation in your current role? could you work from home one day a week or work shorter hours? could you compromise on leaving the office an hour or two earlier and doing some work at home in the evening after your child has gone to bed?

To be honest I don't see that it could be worth a 30% cut in salary and benefits to see you child for an extra half an hour in the morning or evening, and by that I mean that I dont know that this would be quality time with your child? I know its not always an option but for me, there would be a lot more benefit in taking a 20% cut and having an extra day a week at home with your child. Have you looked at unpaid parental leave? doesn't this allow you something like 6 weeks a year until the child is five? I know a lot of women who take this as a day a week out of the office.

One last comment - the local role is more senior, more senior roles do often involve longer hours - you could very quickly end up back in the same position re time at home and significantly less money...
 
I will not repeat comments made in previous replies but add that you like your current position and you must consider that when you settle in may not like the new position as much. Other issues or responsibilities, now unseen, can present themselves.

Also consider is one position more secure than the other.
 
Thanks for all the replies; the more local job is with a different company so its not the way my existing employer is taking advantage. It's very much an employers market out there at the moment offering such low packages for senior positions; the only advantage I'm in is that I currently have a full time position to return to (which is a blessing in itself!).
It's really playing on my mind all weekend, i'm not upset about returning to work, i'm upset about the time I won't have with my child Mon-Fri. We will encounter child care costs now that we did not have previously.
I'll use the recommended moneymakeover link to ensure I'm putting mind over heart!
 
Ok, that makes more sense. I agree it's an employers market for most jobs.

Could you explore working reduced hours with your current employer?

Also, are your company paying you maternity benefit? You may have to repay this if you don't return
 
Is there a possibility for you to relocated to nearer your workplace?
Think of an au pair for child care to perhaps minimise on cost.
Millieforbes post is excellent and they make very valid points. I would look into a 4 day week or working through lunch to finish earlier, or starting earlier to finish earlier or work some hours at home - depending on your company this may or may not be possible.
You must cost everything out.
 
Do the figures and see if it makes financial sense. If it does move. Why not do the money makeover.

I've moved house to commute less, after I had children and I couldn't put a price on the savings in stress I no longer have to endure.
 
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