4 Financials You Must Know Before Changing Jobs

4 Financial Things Before Changing Jobs
4 Financial Things Before Changing Jobs
สมัครรถแลกเงินโปรโมชั่น แจกฟรี Voucher Lazada

After the bonus season, one of the most popular activities for regular employees is to change jobs to increase their salary or to look for new and more exciting work experiences than their current job. Money is a major factor in deciding whether or not to change jobs or where to move. What are the things about money or finances that you need to know before deciding to change jobs? This article has the answers for you.

4 Financial Things You Must Know Before Thinking About Changing Jobs

Employees should know! How to maintain benefits when pressured to write a resignation letter

1. Salary increase vs. increased expenses

Normally, when changing jobs, most people expect a salary increase, such as at least 20%-30%, so that they have more money to spend or save. However, when moving or changing workplaces, there may be some expenses that change or increase, such as:

  • Travel costs:  which may be further from home or in the city, which increases the cost of fuel, expressway fees, parking fees, taxi/car fees, or train tickets each day.
  • Cost of living:  For those working in the city, the cost of food, drinks/coffee, and afternoon snacks are usually higher than those working outside the city or in industrial estates.
  • Social Tax:  When you have to build relationships with new colleagues or when your position is higher, you may have to buy gifts or treat your teammates to meals. The money you put in envelopes for various events will also increase. This is a normal part of working life.

2. How much of the income is added to your salary?

Many times when negotiating salary with a new workplace, HR often presents a salary package that makes it look high, such as stating the total income from salary, fixed gas/phone allowance, qualification/license allowance, average bonus, provident fund contribution from the employer, etc. However, in terms of income certainty, salary is considered income according to the employment contract that cannot be easily reduced if there is no wrongdoing to the employer or company regulations.

Other income, such as fixed fuel costs, qualifications/license fees, etc., may be reduced or eliminated if there is a change in job position or adjustment of workplace structure. As for bonuses, they are considered variable income that is uncertain and depends on the company’s performance and annual performance evaluations, etc. As for the employer’s contribution to the provident fund, even though it is additional money from other income, it is kept in the provident fund and cannot be immediately used.

In addition, salary is often used as a basis for calculating welfare or other income, such as overtime pay, bonuses, etc., including compensation according to labor laws that will be received when being laid off or retiring, which is also calculated from the salary base of the last 30-400 days before the end of the employee’s status.

3. Criteria and benefits upon retirement

    • Retirement Age Criteria:  Check how old you are. If the retirement age is earlier than your previous job, it reflects a shorter income opportunity, as well as a longer spending period and more money to prepare after retirement.
    • Retirement Lump Sum Payment:  The severance pay under labor law may be less because your length of employment at your last company is shorter than your previous employment. Therefore, you should check with your new employer to see if they offer any other lump sum payments and what the criteria are for receiving them.
Money matters, job changes

Provident Fund :

  • Check how much your employer is contributing. Is it higher than your previous employer? Because this contribution will be kept in the fund to be used when you retire or leave your job.
  • Check how much money you are entitled to from the fund if you leave your job before retirement. Will you receive all or just a portion of the employer’s share? If you are not planning to work at this new job until retirement.
  • Check the investment policy to see if there is a policy to choose from that is consistent with your risk tolerance or age range so that your money grows appropriately.

4. Things lost or reduced due to job transfers

  • Salary increase and year-end bonus:  In the first year of working with a new company, if the number of working days is lower than the criteria set by HR, especially in cases where the performance evaluation period at the end of the year has not yet passed the probationary period, it may result in

    -Salary increases are not considered or are received less than those of others with equal performance evaluations.

    – Bonuses: Although they are received in the same amount as their salary as others, they may be received in proportion to the number of days worked. For example, if you start work in the middle of the year, you may only receive 50% of the bonus you would have received if you had worked a full year.

  • Welfare during the probationary period:  For example, during the first 3-6 months of employment, you may not be able to claim any welfare. Therefore, if you become ill during this period, without using social security and having never purchased health insurance, you may have to use your savings to pay for medical expenses yourself.
  • Vacation days:  Under labor law, employees are required to receive vacation days after completing one full year of employment, but some companies may start granting vacation days after the probationary period. Therefore, during the first year of employment, annual travel plans may need to be reduced, for example.

Changing jobs not only means changing friends and society, but it may also affect your financial management or financial planning style due to changes in income, expenses, and various benefits.

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