Changing pay anniversary from 12 months to 15 months
Options
Comments
-
I disagree with the majority on here. If you have a pay award that in part says that the next 12 monthly pay award is in 15 months time (that is 15 months from this pay award) then working out 2.1% as a 12/15th's yearly equivelent now is valid if the extra money was included in the 2.1% award. Saying the 12 monthly equivelent needs to be calculated in the next payrise is not valid if in 15 months time they negotiate a 12 month deal on the basis that the extra was paid 15 months previously.
My employers have just done a 15 month deal but they split up the rise so that we had a 12 month rise and then after 3 months a much smaller 3 months rise. This seems a much more straight forward way of working it all out and results in nice round figures;). This brings us into line with calendar years so I suspect we might do another 15 monther next year to bring us into line with tax years.
This is what happened with the holiday booking system too, brought into line with tax years with a 3 month long 'holiday year'.
Which brings us back to the OP. Its possible the union agreed a 1.8% pay deal and then were offered a .3% extra payment upfront for the extra 3 months. The management could argue that the extra .3% upfront is actually worth more than .3% because you recieve it for 15 months and not 12 months. That could make up the difference between the 1.68% (mathamatical) figure and the 1.8% (union) figure.
In the end it is what it is and must be viewed in line with previous years. I've had rises above RPI when RPI was low and this year well below RPI now RPI is high. Overall it works out about right.
DarrenXbigman's guide to a happy life.
Eat properly
Sleep properly
Save some money0 -
How much the next review being delayed will be worth numerically will depend on how big the next rise is. For simplicity, I am going to assume it might be 2% which happens in 15 months rather than 12. Three months is a quarter of the year, so 3 months without a 2% payrise is worth 0.5% of the annual salary (OK, of the salary increased by the present 2.1% rise but I don't feel like compounding). But that 0.5% if spread over the whole 15 months will come to 0.4% a year. So roughly reducing the present effective payrise to 1.7% by this calculation. In addition, every year going forward will have three months which will now be paid before, rather than after that years pay award, adding to the longterm financial consequences of this change.
A different way of working, but the final number isn't that different.But a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll0 -
Brilliantly explained. Thanks0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608.1K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards