Functional move – Positive financial impact

Dear all,

Now that I have started my new job (since 5 days), I will give you some financial details about that move.

Our company is using the Hay system to define the salary grade for each jobs, so with my promotion, I received one grade promotion, which means the following:

  • A salary increase of 4.3%
  • New incentive compensation (IC) rate from 13% to 18%, if I consider last year performance remaining the same, it will increase by +/- 8’500 CHF to a level of 25k-30k.

As I mentioned, in this post (Job, functional move and salary increase), my work location is now in another city of Switzerland away by 80 Km from home. When I signed my new contract, I had the surprise to receive a bonus 18’500 CHF for transportation expenses.

We will keep this bonus in our “car” saving account to be ready to buy a new car in a couple of years.

Now, we all these additional bonuses, I will need to figure out what will be the impact on our taxes, as all the above are subject to tax imposition. The tax reimbursement  from 2014, will not go for shares investment but probably to pay the additional 2015 taxes.

What about you, any new job, are you looking to change job?

Cheers, RA50

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4 thoughts on “Functional move – Positive financial impact

  1. Remember, since you are in a higher tax bracket now, so you will probably a retirement fund deficit (“pensionskassen unterdeckung”). So you can probably contribute a into your retirement fund via voluntary payments, which in terms can lower your tax impact.

    But: beware, voluntary pension fund payments do not have the same return potential as equity…. Your money might be better at work somewhere else (but you miss the one time tax benefit) -> time to crunch some numbers! 😀

    Like

    • Hi Makke,

      Thanks for the information, and yes I am thinking to contribute to my second pillar in buying forward that my company propose. I need to make some calculation to evaluate what make more sense financially.

      Thanks for passing by and good weekend

      Like

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