Workplace pension preventing me from getting a pay rise

sandsy

DanAboutTown wrote: »

Thanks for your help everybody. It seems that, while the company hasn't done anything wrong per se, the amount that we are being given in pension contributions is much less than we would be entitled to during a pay review. Personally I think the boss is hiding behind this fact...

It was reported by ONS this week that private sector pay increases are running at 0.4%. So if your employer is putting more than that into a pension for you, you've done better than average.

yangptangkipperbang

Of course the employer could have given everyone a 20% pay increase as well............and sacked 20% of the staff to pay for it !

zygurat789

yangptangkipperbang wrote: »

Of course the employer could have given everyone a 20% pay increase as well............and sacked 20% of the staff to pay for it !

Then he would be making a profit, he only needs to sack 16.67% of his staff to pay for it.

grey_gym_sock

zygurat789 wrote: »

Then he would be making a profit, he only needs to sack 16.67% of his staff to pay for it.

you're ignoring the redundancy costs

i doubt many ppl get a 0.4% rise. i think most get either a pay freeze or a higher rise.

of course it is all about your negotiating position. how indispensable or irreplaceable do you feel today?

it's worth working out the cost to the employer of the pension compared to a basic pay rise. note that they would pay employer NI at 13.8% on top of any basic pay rise, but they don't pay that on pension contributions.

i'm sure some employers will try to have low or no basic pay rises for several years to recoup the costs of their pension contributions.

zygurat789

grey_gym_sock wrote: »

you're ignoring the redundancy costs

QUOTE]

Not at all. They are a below the line item.

opinions4u

DanAboutTown wrote: »

Thanks for your help everybody. It seems that, while the company hasn't done anything wrong per se, the amount that we are being given in pension contributions is much less than we would be entitled to during a pay review

There is no legal entitlement to a pay review in law (with the exception of minimum wage legislation).

There is no entitlement to a rise of any kind from any pay review. I got 0.85% this year. Yay me.

Personally I think the boss is hiding behind this fact...

Like it or not, your employment remuneration package has increased in value.

Let's say, for argument sake, that's 3%. And, itch an equally broad stroke let's say it has cost your employer 2% of the wage bill to deliver this pension contribution.

How is the firm to fund this 2%? Increased sales? Cut back the staff numbers by 2%? Sell a chunk of the business? Improve a process somewhere? Or reduced profit?

If you don't like it go and work somewhere else. If you can get an improved remuneration package and location convenience.

tell_it_how_it_is

I've had no pay rise in seven years, and my employer has never contributed towards a pension.

So you could arguably consider yourself lucky.

ajbell

tell_it_how_it_is wrote: »

I've had no pay rise in seven years, and my employer has never contributed towards a pension.

So you could arguably consider yourself lucky.

Why would you continue to work for such a company/person?

atush

i gotta say, it was a thought of mine lol.

Esp as now they are acting against the law in not offering a contributory pension (or will be soon)

ExBT_Bob

http://www.dailymail.co.uk/money/pensions/article-2329590/Millions-workers-pay-cut-frozen-businesses-absorb-costs-automatic-pensions.html

You're not alone