Would you consider this a pay cut?

amother

OP ↓

Thu, Dec 12 2024, 4:31 pm

I’m so angry, please help me calm down.
The (large) company I work for has been a bit tight financially, so they did not give raises at all this past year. Ok.
Now, they just sent out health insurance offers for next year. The way it works is there are different categories of eligible employees, the higher the tier, the better the insurance tier is. I was always in once category, and this year, they just placed me in a lower category without saying anything. This changes my deductible for a few hundred to a few thousand.
I’m so angry. Never mind no raises, this feels like they are essentially cutting my salary. Without saying a word. I’m trying to fight it, but I’m livid. Feels like a slap in the face.
Would you consider this a reduction in pay? Trying to get some perspective before I fight this out. Gotta come informed Can't Believe It

amother

Nectarine

Thu, Dec 12 2024, 4:35 pm

Wow that’s very upsetting on top of no raises. Hopefully it was a mistake and they’ll correct it and apologize as soon as you bring it up.

To give you a different perspective, my company is laying people off left and right because of the economy. Those people would very much prefer to get away with no raise and more expensive health insurance rather than needing to find a new job in this awful economy.

amother

↑ OP ↓

Thu, Dec 12 2024, 4:44 pm

Well, I happen to work in a profession that’s technically short staffed. While I do bh have a good job and get paid considerably well, I could find something else. My job comes with a lot of responsibility, and I have people working under me (and my license). I didn’t have a cut in responsibility, so I shouldn’t have a cut in pay either.

amother

Amaryllis

Thu, Dec 12 2024, 4:50 pm

I would assume it's a mistake and sent a polite email to say that you've always been in x tier. If they reply it's deliberate, then you need to have a discussion. You also have to be prepared for how far you're willing to go. Is this a deal breaker and you would go elsewhere if they don't give what you want, or is it you will grumble but carry on?

amother

Vermilion

Thu, Dec 12 2024, 4:54 pm

I just want to say that there is research that suggests that the reason why men get paid more is because they are less likely to tolerate not getting raises and are quicker willing to fight/leave.

I’m not saying you should, but we women do sometimes have an automatic reaction of shut up and move on and it doesn’t always work in out interests.

amother

Gardenia

Thu, Dec 12 2024, 4:55 pm

I am in healthcare. They claim reimbursement is not improved and expenses have increased. I think we have had 2 (2%) raises since 2019. (And apparently my company does not believe in merit based raises -they tell us they are short staffed so we need to do more, but are not hiring and threaten layoffs)
The health Insurance benefits offered decrease every year while my premium increases. I think their ultimate plan is to have me pay them for the privilege of working unfortunately, in my psycho out on my own, the industry looks like this, no matter where I work.

amother

↑ OP

Thu, Dec 12 2024, 4:55 pm

I already emailed…not a mistake.
In really not sure, I’m so hurt right now.
This is a long term thing, they’re not going to bump me back up so fast. So this will be every year from now on.

watergirl

Thu, Dec 12 2024, 4:56 pm

Your benefits package is part of your compensation. If they’ve lowered you’re non-salary benefits, they need to raise compensation in another way. You need to speak up.

amother

Mustard

Thu, Dec 12 2024, 5:09 pm

I feel like if this is not a mistake time to look for another job, one that will appreciate you more for the pay you want. Keep this one until the other one comes up and then move.

amother

Junglegreen ↓

Thu, Dec 12 2024, 5:33 pm

If you are truly in high demand and they are short staffed and you can clearly make the case that your replacement cost is higher than what they are paying you, then you can push them to offset the increased heath insurance cost.

Alternatively you can actually look for other opportunities and bring them an offer and ask them to match, but be prepared to follow through if necessary.

If they think they have the upper hand or need to downsize or swap out higher cost seasoned employees for new lower cost ones then you really don’t have much leverage, even if their assessment is incorrect.

dws1219

Thu, Dec 12 2024, 5:36 pm

It's a chess game. Who is more desperate that you keep this job. If it's you then go on, there is nothing you can do. If it's them fight for a big race bigger than this insurance cut. It's that simple

amother

Violet

Thu, Dec 12 2024, 5:40 pm

amother OP wrote:

If that is the case, I think you should move on. You deserve to work in a place that can afford to pay you what you are worth

amother

↑ Junglegreen

Thu, Dec 12 2024, 5:53 pm

Please do your research well before you make the move. Seismic shift have taken place over the last year or two in many industries and industries and vocations that were once in high demand are suddenly downsizing, with dozens of qualified applicants applying for one job opening.

amother

SandyBrown

Thu, Dec 19 2024, 10:02 pm

Of course this is a pay cut - and at the very least you should request to be in the same tier as you always have been.

That said are you sure these tiers are even legal? There are laws which circumscribe the ability of employers to offer better health insurance to only certain employees.

penguin

Mon, Dec 23 2024, 10:34 pm

It's not necessarily a pay cut. Not sure if you mean your contribution to policy or your co-pay on a bill.

Either way, while it may cost you more, it may also cost your employer more to offer you the same tier as previously. So if they end up paying the same or more for a policy that offers you less benefit, technically I would think they didn't cut your package.

Doean't mean you shouldn't talk to a recruiter & see what else is out there.

amother

Mauve

Mon, Dec 23 2024, 10:41 pm

penguin wrote:

I pay for my own health insurance and I wasn't even raised this year. As far as I know there was no real increase in premiums from 24 to 25.

It is 100% a pay cut.

amother

Rose ↓

Mon, Dec 23 2024, 10:46 pm

Why not leave to somewhere else?

A lot of industries were playing with covid money and just don’t have it now. The companies can’t cover the salaries and benefits they provide. It could be this is happening by you.
Can you explore other options if you are so upset.
It might even be being proactive of your company is struggling.

amother

Freesia

Mon, Dec 23 2024, 11:58 pm

amother Mauve wrote:

I pay for my own health insurance and I wasn't even raised this year. As far as I know there was no real increase in premiums from 24 to 25.

It is 100% a pay cut.

Her deductible went up, not her premiums.