We look at how the pay squeeze is affecting one Irish lawyer
Lawyer Net pay 23%
JOHN (not his real name) is a relatively senior solicitor at a medium to large commercial firm. He is married with a young baby.
His monthly net income has dropped by over 20 per cent in the past year. He has had a 10 per cent cut in his basic pay. A car allowance of over €1,400 a year has been cut, and he has been told he will receive no bonus this year. Last year, his bonus was €26,500.
His wife has also lost her three part-time jobs. As a result, the household income is lower than it was in 2000.
The family cutbacks include: holidaying in Ireland instead of the usual annual long-haul holiday, reducing household expenses such as turning off lights, reducing hot water usage, buying less clothing and travelling to the North to buy nappies and baby food.
They rarely go to the pub or cinema any more and instead watch DVD box-sets and drink less expensive wine. Daily reductions includes fewer lattes and taxis.
He has lost on investments with his PRSA down 25 per cent, a 40 per cent drop in the value of his house,and a reduction in the amount he can save. While the pay cut was due to a general downturn in the firm’s turnover, he is bringing in as much business as he used to. Clients are looking for a 20 per cent discount in fees.
Gross Aug 08€10,416*
Net Aug 08€6,448
Gross Aug 09€9,375
Net Aug 09 €4,917
Pay drop -23%
* Excludes bonus (which in 2008 was €26,500 for the year)
Interview: Genevieve Carbery