Wednesday, June 11, 2008

Does It Really Helps

"Civil servants to be paid every 2 weeks"

Is this really a good planning for families?

Is this really going to help and curb the rise in fuel prices? Whether you are paid weekly, fortnightly or monthly, the total amount for the month still remain the same, i.e your salary - the take home pay.

The norm for many people is that you tend to spend when there is money in your pocket. So now with the fortnightly payroll, how do you intend to budget your spending?

The normal way of budgeting for the monthly payroll is quite straight forward. Once you received your pay you will do the following (for those who have families) :

1) Pay the house rent

2) Pay utilities bills

3) School expenses

4) Monthly installments ( loans, credit card etc )

5) Groceries and food

6) Keep aside daily expenses for the month

The above are the standard basic requirements.

With the implementation of fortnightly payment of salary how are you going to plan your budget for the month?

You may tend to use up the first half month salary faster then usual as you think that the second half payment is coming shortly. Your budgeting will be screwed up in one way or another. Maybe to some who are prudent with their spending will find no problem with it. But to others I foresee it will affect their budget planning.

To me this does not really help or reduce our burden with the price increase in fuel which will be followed by the increase in almost everything for our daily used.

Is it logical to be paid every two weeks without any pay rise? Is the Government encouraging you to spend? Or is the Government trying to hookwink us by saying that they care for the rakyat?

1 comment:

Unknown said...

The majority of companies in the US pay their employees on a bi-weekly basis.

And being paid twice a month actually gives one more flexibility no matter how one looks at it. There is less of a lag.

Do you really think "harder to budget" is a valid excuse? I suppose one can easily turn the argument around and say that those who waste their income in one shot will not be able to do it now. I.e. it actually helps with their budgeting.