Payrise is paycut
 

So I received my first pay rise and bonus last week. I was pleased to learn that I received a rise of +3% and bonus yet when I did the currency conversion to GBP I notice I am actually worse off in the motherland. The worst of the drop seems yet to happen with the dollar predicted to slump to against the pound by up to 50% - similar to 2006 levels.

Re: Payrise is paycut
 

Most inconsiderate of your employer, not to take the FX rate into account when giving you a pay rise and bonus ;)

Re: Payrise is paycut
 

Happy days when it does

Re: Payrise is paycut
 

Are they actually giving pay rises in the motherland yet?

Re: Payrise is paycut
 

Not much wage pressure yet, productivity has flat lined.

One consequence of the near zero rates since the financial crisis has been to keep zombie businesses going while money is cheap, banks where evergreening loans (where a bank lends money to a business so it doesn't show as a default on bank books) so there is still a lot of restructuring (letting poorly performing businesses fail or turned around) required in the economy that won't happen until rates start to rise.

Re: Payrise is paycut
 

You are earning and spending dollars

I don't get it

Re: Payrise is paycut
 

I've had the total of 1 payrise in about 15 years of working. I must be doing something right to have done so well.

Re: Payrise is paycut
 

I moved out here for a big pay rise when the rate was $1.50 and am now back to earning what I was in the UK in 2011.

In global terms nearly everyone in Australia is 20-30% worse off than they were 18 months ago. Because it's a relatively insular place, and people don't just pop over the border for a long weekend, your average Aussie Joe isn't really aware of this. They just read that house prices have gone up 10% (so, minus 20% in Pounds, US dollars, Yen, NZ dollars, Afghan rupees etc) in the last year and that's all that matters.

There are plenty on here who will tell you this is Australia, Aussie dollars are all that counts, the dollar has been overvalued for years etc etc - and they are very much entitled to those points of view. But for those who have the flexibility to move back and forth between hemispheres I think it is a major factor and I am sure one which will be impacting on immigration from developed countries in the coming years.

Re: Payrise is paycut
 

Your average bogan doesn't care less as you said despite how much you try to incite a reaction. The only time they will care is in 6 months or so when they try to buy the April delivery of smart TV's and the decrease in dollar may affect the price.

Thosr who do care are those who regularly ship Aussie dollars to countries such as the UK or US and first started doing so 3 or 4 years ago to say pay off a mortgage and based their payment on the rate 3 or 4 years ago.

In actual fact it matters little for most Aussie income earners.

For me, l like to send money to the UK so I need a good $A. I also travel a lot. It helps there too. But for day to day living in Oz, I'm far better of here on an earnings to savings ratio. I get pay rises here, not something I saw in the UK for a long time.

Re: Payrise is paycut
 

ou've got to get out of the habit of looking at money and costs compared with the UK, when that happens you will really have moved to Australia. It took about a year for us to do that when we moved to Spain, but it does make things a lot simpler..

Re: Payrise is paycut
 

Do you work in Australia and then spend your money in the UK or am I missing something...