{"id":17546,"date":"2022-02-28T19:00:00","date_gmt":"2022-02-28T11:00:00","guid":{"rendered":"https:\/\/www.comparehero.my\/blog\/uncategorized\/how-to-survive-pay-cut.html"},"modified":"2022-02-28T19:00:00","modified_gmt":"2022-02-28T11:00:00","slug":"how-to-survive-pay-cut","status":"publish","type":"post","link":"https:\/\/www.comparehero.my\/blog\/wages-employment\/how-to-survive-pay-cut.html","title":{"rendered":"#StretchYourRinggit – How To Survive A Pay Cut During COVID-19"},"content":{"rendered":"\n

Ever since the Movement Control Order (MCO) was enforced, many employers were left with no choice but to deduct or cut the employees\u2019 salaries. This has impacted many employed Malaysians to search for ways to survive financially. Read this article to find out how you can handle a pay cut during this pandemic.<\/strong><\/p> \n

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If you\u2019re one of the many affected by the COVID-19, chances are you have had the misfortune of being retrenched or have a salary deduction. As of June 2, a total of 12.7 million Malaysians are unemployed<\/a>. The figure is expected to climb up to 2 million people<\/a> according to Malaysian Employers Federation executive director Datuk Shamsuddin Bardan.<\/p> \n

Or perhaps you could have just made a big career change, and in pursuant of your dream job, you agreed to taking a pay cut.<\/p> \n

If you\u2019re experiencing a reduction in your income, you may be struggling with meeting your commitments. So\u2026 what can you do?<\/p> \n

You\u2019d obviously know that you need to rebudget your monthly spendings<\/strong>. Rebudgetting is truly one of the best ways to handle pay cuts. But before you start, you need to do the following first:<\/p> \n

1. Decide where you can trim your spending<\/h2> \n

What can you live without? In this period, you may want to consider trimming the excess spending that you don\u2019t really need<\/strong>.<\/p> \n

If your gym membership costs RM200, you may want to pause that until your finances improve later on. You can always work out at home to stay healthy during this difficult time.<\/p> \n

Likewise when it comes to entertainment, shopping, and other lifestyle habits – cut back as much as you can, but perhaps not completely. You don\u2019t want to live miserably too.<\/p> \n

You can always try to find alternatives to your non-essential spending. If you\u2019re used to shopping at high-end supermarkets and choosing what you want without really following a budget, you may want to consider shopping at a wholesaler mall where things are generally cheaper when bought in bulk.<\/p> \n

Cut back on your restaurant and cafe visits at this point, too. It\u2019s always cheaper (not to mention healthier) to cook for yourself, where you can easily whip up 3-4 meals with just a few simple ingredients.<\/p> \n

And if you have vices, now would be a good time to start shaking it off.<\/p> \n

2. Renegotiate the most important commitments<\/h2> \n

If you\u2019re renting, consider speaking to your landlord about your current situation and see if you can renegotiate your terms<\/strong>. Try suggesting a payment plan that works for your new budget. You can suggest paying 50% less for the upcoming months, and when your salary is reinstated, to pay the full monthly rental fee plus a sum of your owing until they are cleared.<\/p> \n

If you live alone, you can consider taking on a roommate<\/strong> to share the rent, or packing up and moving to a smaller place so you can still maintain your privacy.<\/p> \n

If you have a mortgage, car loan, personal loan, or any other kind of loans, you can always speak to your bank to see how you can reschedule and\/or restructure your loans<\/strong>. Here\u2019s how it works:<\/p> \n