katie8383

Hi all

My partner has had his official job offer through, and the salary includes a 'market premium allowance' which is abatable...meaning it can be stopped.

Because of this we are unsure of whether to accept, as the market premium allowance makes up 10% of his overall salary and it would be a lot of money for them to just take away whenever they decide.

Is a 'market premium allowance' standard on salaries in NZ? I've never really heard of this before and its making us a bit uneasy.

Thanks in advance.

MrsFychan

not some thing I have heard of, without the premium, which is classed as a payment above the normal salary, would the salary still fulfil the visa requirement?

escapedtonz

Never heard of that term here.
Maybe it's a term used instead of a % bonus relating to how the employee, the department or the business performs against a set of targets ?
We used to have such a scheme when I first started. This paid up to 10% of base salary as a bonus in July of each year with the change of finacial year. The company I work for removed this a few years ago and instead gave us a reducing 2 year pay increase deal as compensation for its loss.
If it is a bonus scheme like this then it shouldn't be an issue as the base salary remains the same and as quoted for the job and the additional payment may or may not be paid depending on performance over the previous year. Can't miss what you've never had but it's a bonus if you get it.

chc4me

Hi Katie, I can't say I've heard the term Market Premium Allowance before, but then again I hadn't heard of Zero Hour Contracts until that issue was in the media. When it comes to such an important issue, professional advice is essential from a NZ Employment Lawyer.

janiejones

There used to be something similar where my husband works. It was to recognise that it was a competitive job market, and candidates could command good salaries elsewhere, so a market adjustment was added to salaries to make the employer more attractive. They got phased out for new candidates when the job market in his field wasn't as hot, but his salary didn't get reduced.

katie8383

Hi Janie, I think thats what it is.

Thanks to all for your help

Bo-Jangles

I know it may seem like a bit of a risk and goes against our usual meek and mild British nature to negotiate on salary but you could always ask them to improve the offer if you feel it is a bit low-ball Don't be afraid to ask for more - most NZ employers leave room for negotiation and you have nothing lose by simply saying you were expecting more and asking if there's an room for movement. A couple of extra Ks is better in your bank than theirs and can make a world of difference to your quality of life here.