Advice on pay increase complaint

Putneycycles

Hi all

Last year I was awarded a bonus paid over 12 months in lieu of an increase in salary which I was told was due to my salary being above the top of a newly set pay range for my role which meant I was unable to be awarded a salary increase. I was told verbally this situation would be escalated and resolved but this just drifted on with regular verbal feedback that it was going to be sorted out but no actual progress.

For this year’s pay review, I was awarded a normal salary increase despite being still above the top of the pay range which contradicts the reason given for not getting a normal increase last year. However, as the salary increase is less than last year’s ‘bonus’ which ended in line with the salary increase, my pay has now actually gone down.

As well as this, I have lost out on employer pension contributions in 2025-6 due to the bonus not being used as part of the pension calculation and obviously this year’s salary increase % was applied to a lower base than it should have been.

I am planning to raise this with HR as this situation seems unfair and inconsistent and it is obvious it is now not going to be resolved by escalation through management.

My question is whether my employer have acted in accordance with employment law by these actions. I am planning on raising it either way but was just wondering if there are any other arguments to add to the complaint as well as unfairness and inconsistency.

Any advice would be appreciated.

El_Torro

Based purely on what you say in your opening post it’s unlikely that your employer has acted illegally. Unfairly maybe, but acting unfairly is not illegal.

The bonus is likely to be a one off, so not repeated year on year. So the fact that your pay is less this year than last year is not legally an issue.

Your employer does not have to take all your earnings into account when it comes to pension contributions. Legally they only have to take qualifying earnings into account. Many employers do more than the legal minimum, but they don’t have to.

Ultimately your employer does not have a lot of legal obligations when it comes to your pay. As long as you’re getting at least minimum wage there are no requirements for annual pay rises or ‘fair’ salaries.

You can still argue your case of course, though accusing your employer of acting illegally is probably not a good way to start the conversation.

Isthisforreal99

You have zero grounds for any 'other arguments'. As long as you are being paid minimum wage or your employment contract states you are entitled to an annual pay increase then your employer is doing nothing wrong.

My advice would be ask the question but don't go in all guns blazing. Ultimately if you are not happy then it's time to look for another job.

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/6670723/advice-on-pay-increase-complaint

I think you need to take a deep breath and count to ten.

Your current mindset of raising a compliant is not going to be conducive to you achieving the outcome you desire. If you pursue the matter too vigorously as a complaint it is likely to find you on the path to being managed out.

strawb_shortcake

Similar happens in my department of the CS, those whose salary is at the higher end of the threshold gets a non consolidated pay rise paid usually in a lump sum I believe (I'm not at the threshold). No pension contributions and I think it's largely agreed by those affected, annoying.

YBR

As per PP, I have seen this before based on role banding - in an international company there was the daft idea that bands could apply globally without taking account of local context (sigh)! It's not illegal, but also it's not what you've been told to expect.

I think I would raise the question myself, not as a formal complaint but gently as a reminder of what was said, and is it still on the cards or not? That does depend on the people/relationships involved.

Since it seems management can't either get an exception or get the banding threshold changed, your choices are to change role to go up a band or find a job elsewhere.

LightFlare

Are you still above the the top of a newly set pay range for your role ?

At it or now below it ?

Since last years "pay rise" was paid as a bonus - then not a lot of recourse

TELLIT01

Unless there is anything in the contract of employment stating that pay will rise in line with inflation (as an example) there is no statutory right to any payrise as long a your pay does not drop below the Minimum Wage.

Certainly no harm in asking, but I was in a similar situation after restructuring where I was well above the max for the restructured grade. I didn't get any payrise but did get the annual bonus based on my wage.

EnPointe

https://forums.moneysavingexpert.com/discussion/comment/82019630#Comment_82019630

Interestingly of course banding is applied internationally by various organisations , albeit usually those headquartered ina single state and whose overseas staff are deployed / posted this is achieved by 'cost of living adjustments' or adjustments ( or the presence of ) to any accomodation and vehicle allowances and the provision of other discretionary allowances based on circumstances ( e.g. seperation allowanc,es Continuity of Education allowances etc )

you cna do Banding quite easily becasue banding should be based on Job Eval;uation scores ( hence the various battles within UK Localauthorities of dinner ladies vs Bin men eand the like or the Clothes shop store based vs Warehouse staff issues , where store based staff are expected to run warehouse like stock rooms inc;luding using MHE to unload lorries and the like and there are warehouse staff who are doing air conditioned shirt sleeve , shopping trolley picking but being paid as though they are lumping heavy boxes manually out the back of lorries in all weathers in the loading bays part of the warehouse semi open to the outisde ….

Putneycycles

Thanks all for your comments which have clearly outlined the position for me.

I’ll take on board the comments and consider how to proceed.

To clarify one point, my salary was still above the top of the pay range when I was awarded a salary increase this year i.e. I was in exactly the same position as last year when I was told I couldn’t be given a salary increase…

ohreallƳ

Why didn't the "newly set pay range" recognise and take account of the fact that it would fail your particular situation, did no-one foresee an issue arising that would require addressing?

Or did they simply hope for the best by kicking the can down the road?