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Changing pay anniversary from 12 months to 15 months
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You need to know what the rate of inflation is (and the measure by which you're judging it - RPI or CPI) before you can make a comment about "real terms".
So what are you actually trying to calculate - what the annual (ie 12 month) equivalent is to a 2.1% rise for 15 months? Or whether your wages aren't rising as fast as your bills?0 -
12 month 2.1% equivalent at 15 months.
According to the above poster the additive equation will produce the 1.8 which is what I'm looking to check/ reproduce.0 -
I'm not going to do the maths for you as you've misunderstood my post.
The 2.1% is since your last rise - whether that be 6 months, 12 months or much, much longer - when the next negotiation comes around, you would take into account the period since the last pay rise.Originally Posted by shortcrust
"Contact the Ministry of Fairness....If sufficient evidence of unfairness is discovered you’ll get an apology, a permanent contract with backdated benefits, a ‘Let’s Make it Fair!’ tshirt and mug, and those guilty of unfairness will be sent on a Fairness Awareness course."0 -
The first obvious calculation is this pay rise is based on the previous 12months pay rises are not in advance/anticipation so 2.1% foe 12 months.
If you consider it in advance then on flat rate it would be 2.1*12/15 1.68% for 12months.
As already mentioned you can use compounding calculations but they don't really make sense neither does flat rate.
The real issue is you can't really give an equivalent as that would depend on what might have been given at 12 months in the future to cover those extra 3 months.
It is not this pay rise that needs to be equivalenced it's the next one.
I suspect the union just made a number up to try to argue it was too small.0 -
Thank you all. It makes sense that at the very least it is something that really is to be sorted out at the next review. Just how that would be addressed so that if they were awarded exactly the same rise for example, there would undoubtedly be less money in people's pockets if they waited 15 months and the continued with 12. As they would spend 3 months on a lower amount where it should have been earlier.
Seems most sensible action would be backdating on whatever rise is agreed, as i:Tt is only for accounting/ organisational reasons that it was moved.0 -
getmore4less wrote: »I suspect the union just made a number up to try to argue it was too small.
The union would probably also argue the glass was half empty while management claim it's half full, so I wouldn't get too hung up on the exact number...
What's the real issue here OP - the range of possible answers is less than half a percent, so what does it matter? Why are you getting so het up about such tiny numbers?0 -
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If it is the new owners that set the rise they will have done it as part of their budget including the move of dates, there is no equivalency looking forward that makes any sense.
If the unions were negotiating they may have missed the obvious looming change of date for the next rises.
It is fairly common practice to align pay rises with budgets0 -
Thank you all. It makes sense that at the very least it is something that really is to be sorted out at the next review. Just how that would be addressed so that if they were awarded exactly the same rise for example, there would undoubtedly be less money in people's pockets if they waited 15 months and the continued with 12. As they would spend 3 months on a lower amount where it should have been earlier.
Seems most sensible action would be backdating on whatever rise is agreed, as i:Tt is only for accounting/ organisational reasons that it was moved.
But you are making assumptions. The pay rise on 15 months might be 0%. In which case it won't make any difference that you didn't get 0% 3 months earlier.0 -
But im still correct, backdating a 0% rise is as fair as backdating a 0.1% rise, the mechanic is the same.0
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