Payrise is paycut
#1
Forum Regular
Thread Starter
Joined: Dec 2013
Posts: 297
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.
#2
Re: 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.
#3
Re: 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.
Happy days when it does
#4
Lost in BE Cyberspace
Joined: Dec 2010
Posts: 14,040
Re: 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.
#5
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.
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.
#6
BE Enthusiast
Joined: Jun 2007
Location: The "Gong"
Posts: 433
Re: Payrise is paycut
You are earning and spending dollars
I don't get it
I don't get it
#8
Re: 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.
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.
Last edited by DC10; Mar 17th 2015 at 5:46 am.
#9
Lost in BE Cyberspace
Joined: Dec 2010
Posts: 14,040
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.
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.
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.
#10
Re: 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.
#11
Forum Regular
Joined: Oct 2010
Posts: 280
Re: Payrise is paycut
Do you work in Australia and then spend your money in the UK or am I missing something...