Public sector pay freeze/Inflation calculation

Malthusian

Hitchen17 wrote: »

So I'm trying to get some information together, part of which is trying to work out how much money I've missed out on as my wages have not been rising with inflation for some time.

Nothing. The money's in your pension.

Rinoa

Hitchen17 wrote: »

Hi all,

So I'm trying to get some information together, part of which is trying to work out how much money I've missed out on as my wages have not been rising with inflation for some time.

From 2013 I was on £29,947. How would I work out how short I am per month using the inflation rates and the public sector pay freezes and the 1% pay cap.

Any help is much appreciated.

Cheers.

You could always try looking for similar jobs in the private sector if you believe you're underpaid.

Good luck.

jamesperrett

From the start of the civil service pay freeze in 2010 I found that my take home pay stayed pretty static until last year when it eventually rose by about 2% above the 2010 figure. For the first few years any increase in pay was eaten up by an increase in pension contributions and, once they stopped rising, contracted out NI ceased and so NI went up.

Prospect have some graphs that show the pay gap between average wages and public sector wages.

chucknorris

Rinoa wrote: »

You could always try looking for similar jobs in the private sector if you believe you're underpaid.

Good luck.

He would need a big differential to make up for the pension, my PS pension is worth over 35% of my basic salary.

Pennywise

Don't forget the tax reductions you've enjoyed from the increase in personal allowance well above inflation (and increase in higher rate threshold if you're earnings are near the H/R threhold).

Thrugelmir

ukcarper wrote: »

How much have pension contributions increase and does that apply to all public sector employees.

Civil service and NHS have defonately increased post 2012 by differing %. With much depending on where an individuals salary falls in the contribution bands. In effect the higher the salary the larger the % increase. Safe to assume other sectors have likewise gone through Union negotiation.

ukcarper

Pennywise wrote: »

Don't forget the tax reductions you've enjoyed from the increase in personal allowance well above inflation (and increase in higher rate threshold if you're earnings are near the H/R threhold).

Taking that into consideration he’s still £100 a month worse off.

ukcarper

Thrugelmir wrote: »

Civil service and NHS have defonately increased post 2012 by differing %. With much depending on where an individuals salary falls in the contribution bands. In effect the higher the salary the larger the % increase. Safe to assume other sectors have likewise gone through Union negotiation.

That would take up a big chunk of the £450 gained from increased personal allowance, I suppose it will be worth it in the long term if it saves pension scheme.

Thrugelmir

ukcarper wrote: »

That would take up a big chunk of the £450 gained from increased personal allowance, I suppose it will be worth it in the long term if it saves pension scheme.

At the time was doing some contracting work for a pension scheme that was linked to the Civil Service one by analogy. Increase was 1.6%. Tax relief was granted on this. Still wiped the payrise for that year.

ukcarper

Thrugelmir wrote: »

At the time was doing some contracting work for a pension scheme that was linked to the Civil Service one by analogy. Increase was 1.6%. Tax relief was granted on this. Still wiped the payrise for that year.

In the company I worked for the pension contributions stayed the same but the scheme change from final salary to life time average before being frozen and future payments change to defined contributions. I was lucky enough to take early retirement on final salary terms but it would probably be beneficial to people still working if contributions increased and final salary was kept.