Have you renegotiated your salary for 2018 yet? Here are 4 good strategies for increasing your chances
Most of you may already know that the net (in pocket) salary everyone earns under a Romanian employment contract will significantly decrease as of January 2018, following the transfer of employer social contributions payment obligation to the employee’s account, unless the company’s management has already acted at its own initiative for increasing your contractual gross salary, so your net in pocket is not affected. Otherwise, your net monthly salary will be affected by this legislative change, meaning that it will decrease with approximately 7.5%!
No, no kidding at all! If your employer plans to book this transfer of social contributions payment obligation as a saving for them, then you will have to bear the costs from your own gross salary. So, don’t wait anymore, and grab your chances of renegotiating your pay with your employer while you still can!
Here are 4 important aspects you should consider when having this discussion with your manager:
There is no increase of cost, just realignment of your tax calculation base
Your employer should have already budgeted their cost with the employer social contributions due for 2018. Therefore, your gross salary increase will be paid with the same money that they had to pay if it hadn’t been for this change in tax legislation. There is no additional cost involved for the company at all. Since you now have to pay the employer’s contributions as well, from your own salary, you deserve to be paid those funds and use them for settling all salary taxes that will apply as of January 2018. You want what is fair for you and everyone in the company.
A reliable employer should not transfer the tax cost burden on your shoulders
Explain to your manager how you expect your employer to show reliability and be a true partner in this journey together. If they want to show you they are a reliable partner in this relationship, then this is the moment to do it. This is a leadership lesson any manager or director of a company should know and apply correctly. Tell them how you expect they will be there for you to help and protect your well-deserved salary rights. Be rational and use facts as they are to back up your endeavor, and most of all, be patient.
Tax cuts may influence rating for Romania in near future
Go on explaining that you are claiming this raise on behalf of all employees, not only for you. And that everyone deserves the same treatment and help from the company. You have discussed with your colleagues on this topic and everyone in now expecting for the management and the shareholders to agree on the salary raise for all employees. Once you’ve mentioned that, let them understand that a contrary decision will jeopardize employee retention in the company, and you know that most of the colleagues you discussed with are thinking about leaving if their salary rights are not treated fairly.
At least, meet me in the middle
True partners should help each other when harsh conditions come. If you see little will from your manager to help with this raise after bringing up all possible strategies, don’t leave the room without something. As we all know, something is better than nothing. As alternative, don’t talk only about cash, also bring up any possible scenarios of increasing the total compensation package, which often includes fringe benefits as well. This may be a more acceptable alternative for your employer, so pick one of them and try renegotiating the value or the benefit it brings you.
Last but not least, before starting the discussion, do a thorough research of the market, to understand what other companies in the same industry decided regarding this matter. This may prove to be your hidden card during the negotiation.
Good luck and wish you salary increase for 2018!
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