Unwanted Pay Raise Due to Childcare Subsidy Limitations
Hello everyone,
I wanted to share some news I received yesterday: my hourly wage is increasing from $20.67 to $22. While a $1.33 raise might be appreciated by many, it actually creates a dilemma for me. I’ve come to dread pay raises, and my worries have been confirmed yet again.
As a single parent—despite being in a partnership—I’ve structured my life to be manageable on my own due to past experiences. My support system is quite limited without my partner’s involvement.
I currently rely on a childcare subsidy that makes it possible for me to make ends meet at my current income. However, the maximum I can receive for this subsidy is capped at $22 an hour.
In order to maintain my existing financial situation without the subsidy, I would need to earn $30 an hour to cover childcare costs for before and after school, as well as summer care. If my job allowed me a 9 to 3 schedule with remote hours (which is an option in my field), I would still need to earn $24.72 to cover summer care expenses. Just securing afternoon and summer care alone would require me to make $28.11.
I’m currently in school to finish my degree, which will ultimately help me reach these salary goals more easily. I enjoy my job and would rather not be forced to resign in search of lower-paying work.
I would greatly appreciate any advice you might have regarding this situation. Here are some additional points to consider:
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My team was originally made up of three people, but one left and was never replaced. Now, I’m the only one left after the last team member also resigned. While I’m managing, I can’t help but wonder if this could be a negotiating point.
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There have been no applicants for the open position yet, although I’m not sure what that indicates.
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A similar position was recently opened on another team, and they had to make it fully remote to attract candidates.
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Just for context, I work in Accounts Payable and am pursuing a degree in Accounting.
Thank you for your thoughts and insights!
One response
It sounds like you’re in a really challenging situation, and I can understand why a pay raise would feel more like a setback than a win given your circumstances. Here are a few suggestions that might help you navigate this situation:
Communicate Directly with Your Employer: Consider having a candid conversation with your supervisor or HR about your concerns regarding the pay raise and how it affects your childcare subsidy. Highlight the unique challenges you’re facing as a single parent and the impact it has on your ability to continue working at your current wages. They may not be aware of the financial implications this raise has for you.
Explore Options for Flexible Work: Since your job involves accounts payable and there may be potential for remote work or flexible hours, propose a schedule that would work better for you, such as 9 to 3. Even if you can’t do that right now, it’s worth expressing your desire for flexibility in the future.
Negotiate from a Place of Value: Given that you’re handling the workload of three people, use this to your advantage when discussing your role and compensation. Highlight your increased responsibilities and the fact that the team is currently understaffed. This could strengthen your case for negotiating not just your pay but also perhaps a different structure for your compensation that takes into account your childcare needs.
Look for Childcare Alternatives: While it might be difficult, it might be worth researching alternative childcare options that could be more affordable or looking into local programs that assist single parents. Some organizations even offer grants or assistance for working parents that might help bridge the gap.
Keep Your Long-Term Goals in Mind: It’s great that you’re pursuing your degree in Accounting, as that could potentially open doors for higher-paying positions in the future. If you can manage your current situation for a little while longer, it might lead to a more sustainable financial position once you graduate.
Utilize Support Networks: Don’t hesitate to reach out to local resources or community groups for single parents, as they might have insights or recommendations on navigating your childcare and financial concerns.
Ultimately, securing a balance between your work life, educational pursuits, and parenting is key. Thinking creatively about your current situation and exploring different avenues for support could lead to a resolution that allows you to keep your job while also meeting your financial needs. Good luck!