Been asked to take a Covid-19 pay cut? Here's some expert advice

Old Mutual financial education head John Manyike talks to Aubrey Masango about the best way to deal with a pay cut.

The Covid-19 pandemic has hit the economy hard leaving many companies forced to close shop as a result of the national lockdown.

But some organisations, while needing to cut costs, will not want to let go of staff and therefore may be looking at introducing pay cuts instead.

So if the company you work for is one of those looking to slash salaries, what's the best way you can prepare?

Aubrey Masango spoke to John Manyike, head of financial education at Old Mutual for some expert advice.

Manyike says the first thing you should look at is drawing up a budget.

It's quite a daunting task for some people, but it's a necessary exercise to do.

John Manyike, Head Of Financial Education - Old Mutual

Manyike acknowledges that it may mean having to make some very tough decisions:

It might even mean having to downscale on the property. You might have to sell your house.

John Manyike, Head Of Financial Education - Old Mutual

You might even decide to say, let me go and live with family and rent my property out.

John Manyike, Head Of Financial Education - Old Mutual

You HAVE to go back there and say, what needs to stay? You need to determine needs and wants.

John Manyike, Head Of Financial Education - Old Mutual

Manyike says support in the form of counselling for those facing a cut in salary should become standard practice.

I think companies need to make a plan to offer these employee wellbeing programs.

John Manyike, Head Of Financial Education - Old Mutual

More from Local