Employer doesn't do yearly increases with inflation

kroo345 · 26 April 2006 at 9:50AM

I've been with my employer for 1 year, and they don't increase wages at all, not even in line with inflation.

Is this common?

It's starting to get to me, as I'm trying to budget for buying\renting a flat

CIS · 26 April 2006 at 9:56AM

I think many employers who do that are probably trying to bring you in-line with minimum wage.

Otherwise, their just being tight and trying to cut costs down.

kroo345 · 26 April 2006 at 10:10AM

I don't think they would try to bring me in line with minimum wage, salary is 20k. It's more likely the business is just cutting costs.

Am I right in thinking that for wages not to increase with inflation is basically a wage cut, in relation to all other costs, and would be especially bad if I had a variable rate mortgate?

The reality for me is I need to think of number one. I'm going to find out what their official policy is on wage increases and payscales and if I don't get a satisfactory answer seriously consider changing job, as it doesn't make financial sense to stay here.

mr_fishbulb · 26 April 2006 at 10:20AM

I don't think they have to increase your salary with inflation, but most employers will unless they are really tight.

CIS · 26 April 2006 at 10:24AM

The job i used to be in, was giving an annual inflation rise, but was supposed to have a payscale system that was moved up every year , In 3.5yrs I never moved up once, (someonelse hadn't after around 6yrs), just becasue they decided to cut cost and ignore any agreed moves.

jan59 · 26 April 2006 at 10:31AM

If your costs are going up, then so is your employer's costs. If you had your own business, would you fund someone else's cost increases? Why should they fund your increases if you are doing no more for them in productivity and enabling them to meet their cost increases? Turn it around and think more about benefit and not cost. If you have improved your input to the company so that they can better meet their costs - and have therefore benefitted from your input, then approach them for an individual rise. Yes, you have to think about number one, but so do they!

Sumostar · 26 April 2006 at 10:35AM

Hi

There is no requirement for employers to increase pay rates unless it is specifically stated in your Terms & Conditions of Employment. If, for example, a business is going through a sticky patch then a wage increase could be economic suicide. You might want to check if your employer has a blanket agreement over rates. I work for a small building firm who has signed up to national agreements, so the rates for the workforce are the same for all our competitors that have signed up too. It prevents wages being pushed too low due to competetive forces.

You say that you have been with this company for a year. You might find that it is worth going without a payrise to stay with an employer that is otherwise good to get more experience under your belt. It also looks better on your CV. If you move from employer to employer it makes you look unreliable, or recruiters may think that you can't hold down a job.

HKP_2 · 26 April 2006 at 10:37AM

The company I work for (a big american IT company) dont give inflation based rises either. Infact you are only eligable for consideration of a rise ever 18 months. Now that sucks!!!!

kroo345 · 26 April 2006 at 10:51AM

I can see this from the businesses point of view.

I know their costs have also increased. I obviously can't argue that I need an increase due to increased travel and living expenses, relating to fuel prices, when the business has a fleet of cars, shipping costs and 7 buildings to power.

I just didn't know if it was common place. It's my second job and I worked for a university/NHS before, where everyone had in line with inflation increases plus propper pay scales.

I do have an interest in business, and obviously an exporting SME is faces completely different financial challenges to NHS and Education

Woby_Tide · 26 April 2006 at 11:14AM

thats the difference between the private and public sector. piublic sector tend to give payrises set by 'higher' authority based around inflation. Private sector tend to award payrises on merit and performance. Some companies don't include employees as eligible for performance rewards until after 12 months, i.e. once you are trained into a role.

jan59 · 26 April 2006 at 2:17PM

Do you have performance appraisals? If so, you should be set objectives which you agree to. If you can show that you have completed or (better still!) exceeded these, then you have a case for an increase - though the employer can still say no on affordability, current trading difficulties terms (have a look at the company results to see if this fits!)

If no performance reviews, then how have other folks had increases in the past? ASk them and see what you need to do to get one!

Good luck

Employer doesn't do yearly increases with inflation

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