Settle an agrument!
Timberflake1983
Posts: 42 Forumite
Hi guys,
So I have a job paying £50k where my employer pays all my travel to London.
My friend has just got a new job paying slightly more and they have to pay their own travel.
We playfully started the 'who earns more' game as I said when you take my travel into account (around £10k grossed up) I earn more, but they completely disagree on the basis of its the amount you take home in your pay packet that matters not the 'soft benefits' as they call them.
Anyway, it got my thinking, who's right? I count my package as being worth £60k as if I went for another job where travel wasn't included that's the minimum I'd need to earn to break even, but am I wrong to think of it like that and is it just the amount that's put into your bank every month that counts?
So I have a job paying £50k where my employer pays all my travel to London.
My friend has just got a new job paying slightly more and they have to pay their own travel.
We playfully started the 'who earns more' game as I said when you take my travel into account (around £10k grossed up) I earn more, but they completely disagree on the basis of its the amount you take home in your pay packet that matters not the 'soft benefits' as they call them.
Anyway, it got my thinking, who's right? I count my package as being worth £60k as if I went for another job where travel wasn't included that's the minimum I'd need to earn to break even, but am I wrong to think of it like that and is it just the amount that's put into your bank every month that counts?
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Comments
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Your friend earns more.
Lets say you decided to commute by bicycle, would your take home wage increase?
Same with your friend, he earns a bit more but walks or cycles to work so not much in the way of commuting costs. He earns more right?0 -
You are quite vague in parts. No mention of:
- HOW MUCH your friend earns
- Where you live
- Where friend lives
- Transport methods used
So an accurate comparison cannot be made.
PS, be careful as some employers don't like their employees telling the world how much they earn. You obviously seem to be quite open when discussing your wage (if you "playfully" debate it with a friend) but on a bad day they could pull you up on that...0 -
I assume you're declaring the paid travel to your place of work as a benefit in kind, and so in that case you're right that it should be included in your top line total salary package. (i.e. your employer paying all your travel to work is not a soft benefit, that's a ruddy good salary boost).
If it's not travel to a regular place of work and if it is travel expenses, then no it's not included (but your friend is being badly done by having to pay his own business travel expenses).(Although I could be wrong, I often am.)0 -
I would say we don't have enough information to determine who earns more. Salary is only a part of your earnings. You need to include the value of all other benefits such as pension contribution, car, medical insurance etc. etc.0
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PS, be careful as some employers don't like their employees telling the world how much they earn. You obviously seem to be quite open when discussing your wage (if you "playfully" debate it with a friend) but on a bad day they could pull you up on that...
The friend and I don't work together. This was being discussed outside of work.0 -
I assume you're declaring the paid travel to your place of work as a benefit in kind, and so in that case you're right that it should be included in your top line total salary package. (i.e. your employer paying all your travel to work is not a soft benefit, that's a ruddy good salary boost).
If it's not travel to a regular place of work and if it is travel expenses, then no it's not included (but your friend is being badly done by having to pay his own business travel expenses).
We're only talking travel to regular place of work, my employer pays my travel but theirs doesn't, hence why I thought it would be logical to include it in my salary.0 -
You are quite vague in parts. No mention of:
- HOW MUCH your friend earns
- Where you live
- Where friend lives
- Transport methods used
- HOW MUCH your friend earns
Not my place to put their salary on here, but its around 10% more than me.
- Where you live
- Where friend lives
Both live in the same village and our offices are both in the same part of London
- Transport methods used
Train0 -
if you want some one to comment it needs all the facts.
put up your working for things like worth £10k grossed up0 -
The employer paying your everyday travel costs is a perk (albeit a taxable one), so needs to be factored in with other benefits to get your overall package.0
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Timberflake1983 wrote: »We're only talking travel to regular place of work, my employer pays my travel but theirs doesn't, hence why I thought it would be logical to include it in my salary.
I'd say looking at it as a package (and assuming everything else to be equal) - you earn more.
You get £50K, but get travel costs worth £10K
Your friend earns £55K, but (presumably) has £10K travel costs.
So after travel costs are removed, you've £50K and your friend has £45K.
Hes very foolish if hes looking at only salary when he looks at a job. Its about the overall package (but i suspect he knows that and is just trying to big himself up a bit)0
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