Inflationary pay increases

Marcon

DartfordKit said:

I was wondering what different individuals expectations are in relation to inflationary pay increases in their next pay review given the current high inflation environment. A lot of public sector information is available in the media but we do not see much around the private sector which is more immediately of interest to me. Obviously, some might answer with 'what do you think the job you do is worth?' or 'what are other employers offering for the same job?' but what I'm trying to get is what would a reasonable 'cost of living' increase be for people looking for continuation. 

'Reasonable' isn't much use in these extraordinary times. If giving a 'reasonable' pay increase bankrupts the employer, that's not going to help all their soon to be redundant employees. Even if a company is currently profitable, there is no guarantee what the world, let alone their particular market, will look like in the months to come.

If people don't like what they are offered and can get a better paid job elsewhere, best of luck to them - assuming the new job lasts. Otherwise I fear it's a case of gritted teeth...at least for now.

Kathy535

Let’s not forget the 1.25% national insurance increase as well as the rising cost of living.  

billy2shots

Kathy535 said:

Let’s not forget the 1.25% national insurance increase as well as the rising cost of living.  

To both employee AND employer or should the employer swallow the whole 2.5% increase?

Savvy_Sue

billy2shots said:

Kathy535 said:

Let’s not forget the 1.25% national insurance increase as well as the rising cost of living.  

To both employee AND employer or should the employer swallow the whole 2.5% increase?

I'm fairly sure most payroll software will not be anticipating the employer swallowing the whole increase ... 

billy2shots

Savvy_Sue said:

billy2shots said:

Kathy535 said:

Let’s not forget the 1.25% national insurance increase as well as the rising cost of living.  

To both employee AND employer or should the employer swallow the whole 2.5% increase?

I'm fairly sure most payroll software will not be anticipating the employer swallowing the whole increase ... 

The point I was trying to make was that employers are having to find the 1.25 NIC as well. Some emoyees either don't know / care about that and even expect a pay rise to mitigate that i.e the employer effectively pays the increased tax 

Kathy535 seems to suggest a wage increase is needed for the cost of living rise AND to cover the employee 1.25 NIC increase. 

bamgbost

3.25% rise just announced at our place.  Which appears to not be too shabby.
Although still below rate of inflation

sevenhills

DartfordKit said:

My company has April pay reviews and has budgeted (in Aug/Sept) for a 2.5% increment across the staff for a firm of c. 50 which is peripheral to financial services - that seems quite reasonable to me even though CPI is at 5.5%.

The Government use the CPI rate of inflation to increase pensions and benefits, CPI inflation is now 5.5%

The Government use the RPI rate of inflation to increase rail fares and car tax, RPI inflation is now 7.8%

CPI inflation does not include housing costs.

RPI inflation does not include the top 4% of households by income, or pensions

So neither CPI or RPI are a good measure of inflation, but RPI seems more appropriate if you are an average working person.

Own_Worst_Enermy

This time 2 years ago working through lunch was a delightful but never again £16k, Manager couldn’t care slipping off to bed during pregnancy.
Endured a junior on what £18200 who would do nothing for majority of 2020. Then it got better a part timer that could be brought on board to work less hours at £18,200 and still not give 2 figs if they say money talks.

elsien

No payrise at all on the horizon at my place, inflationary pressure or otherwise. 

Failing to see any relevance in Own_Worst_Enemy’s reply - did I miss something? 

ariarnia

i'm nhs and i don't think it's been announced yet but i think we're getting something like 3% if the rumours are right. don't know if that would be across the board or weighted at different bands/top of bands