If you're out of work and you need money to pay the bills, it's better to take a lower-paying job than to have no job at all. “There are fewer jobs out there and you may not only have to take less money, you may end up having to take less job,” Courtney says.
You Should Take a Pay Cut If...
"They are not obliged to give their consent, and they could take legal action to prevent such a change." This means if your employer wants to cut your pay, they have to ask for your permission first. You can refuse a drop in wages, but you would be risking termination of your contract completely.
Conclusion. Is it worth it to take a pay cut for better work-life balance? Yes and no. It totally depends on what you value most in your career, what's up ahead for you on your trajectory and if it makes financial sense for you.
Accepting a lower salary can deflate your confidence and make you feel like you are moving away from your career goals. Even if you get over yourself and take the job, you may resent your new boss for not appreciating the experience that you bring to the company.
A pay cut cannot be enacted without the employee being notified. If an employer cuts an employee's pay without telling him, it is considered a breach of contract. Pay cuts are legal as long as they are not done discriminatorily (i.e., based on the employee's race, gender, religion, and/or age).
A reduction in pay may be worth it if you want to make a lifestyle choice and move to an area that better suits your budget, personality, and interests. Moving to an area with a lower cost of living will most certainly mean a smaller paycheck, but the good news is your living expenses will be cut.
Calculating a Pay Decrease by Percentage
These tips are also valuable if you go through a temporary or permanent layoff in the future.
When a Pay Cut Is Not Legal
Employers are obligated to pay employees the agreed-upon rate. If employers wish to change that rate, they can do so but first employees must agree to it. If they choose not to agree to it, they can discontinue service with the company.
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