When Is It Okay To Take A Pay Cut

Posted By: Shatavisha Chakravorty

Money is what an individual needs to survive. In today's world, one cannot think of buying any goods or services without money. Thus, money is needed not just to meet our luxurious demands, but also to meet our basic needs. In order to make this money to survive, all of us look for different ways and means to find a living.

However, irrespective of the profession you are in, what you do for a living is not always defined by money. Sometimes people move from a higher paying job to one that offers less money for some reason or the other.

When Is It Okay To Take A Pay Cut

For a person looking at the picture from outside the industry, this may seem like a dumb thing to do. However, in reality it is not so and in the journey of life money is just not everything. This article talks about situations when moving to a job that pays lesser than your current job is the smartest thing to do.

1. You Are Out Of Work

This is a very good analogy of the old English proverb that beggars cannot be choosers. If you do not have any job in hand, rejecting job offers because they pay lesser than your old job is not right.

Remember that it is always better to have a lower paying job than no job at all. That way even if you are not able to meet all your bills , you will certainly be able to meet a chunk of them, and meanwhile, you can still go about looking for better paying jobs.

2. You Are Moving To A New Domain

As a fresher, in any profession almost all the domains look equally lucrative. However, after having worked in a particular domain for a certain number of years, you may want to switch. Now this switch may be due to a variety of reasons (from not finding your current domain challenging enough to foreseeing better opportunities of growth in some other domain).

In such a case, people cannot expect to be paid the same or higher salary. However, at such a juncture, it is wise to accept the pay cut, because if you are dedicated and hard-working, this will be a temporary phase and sooner or later you will land yourself with a much better pay.

3. A Change Of Career

After spending a certain number of years in a certain profession you may suddenly decide that a particular career is not for you. In such a case you will end up switching careers and your new career may pay higher or lesser as compared to that of your old one. In either case you must accept the same with grace and not let this factor affect your work.

4. Job Satisfaction

Irrespective of whether you are going for a change of domain or a change of career, if it makes you happier, then a lesser pay shouldn't hold you back. At the end of the day, job satisfaction is of way more value as compared to that of a couple of thousands. For any job or anything that you do in your life, happiness is the key.

5. You Want To Work For Lesser Number Of Hours

There are some jobs that have more demanding working hours (increase in the number of hours, necessity of working in shifts) as compared to that of others. An example of this will be the fact that some companies expect you to work for 5 days a week while others demand 6 days.

Thus, while initially you may be elated at the prospect of lesser number of working hours, you may soon realise that the amount you are paid is directly proportional to the number of hours that you put in. Thus, if you are paid less for a change in jobs, where there is a reduction in the weekly working hours, then it only looks fair.

6. To Keep Your Current Job

A situation may so arise that you are given a choice wherein you need to make a pick between accepting a lower pay for your current job and losing your current job. If such a situation does arrive, the smart thing would be to take a lower pay and then start hunting for a new job.

This will not just give you a fixed income to rely on till you get a new job but will also increase your chances of getting a new job (this is because companies prefer hiring someone who is already employed over an unemployed job seeker).

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