Who's getting an inflation based pay rise?

[The Leaper]

snuffy said:

The Leaper said:

My State pension will increase by about 10% in April, so I will get a further £900 or so, less tax of course. My community charge will increase by close on 5%, so an additional £350, no tax allowance of course. Other things have/are/will increase too. Just sayin'

R.

Your coucil tax is £7,000 ?

(assuming when you say "community charge", you are referring to council tax that is.)

Edited by snuffy on Friday 17th February 11:40

The amounts I stated are annual, not monthly.

My community charge, ie what you call council tax, will be £3530 for the next year starting in April.

R.

[Countdown]

I believe Pensioner members of any of the Final Salary schemes will be getting a 10.1% pension increase.

[Fast and Spurious]

Countdown said:

I believe Pensioner members of any of the Final Salary schemes will be getting a 10.1% pension increase.

Really? Most I know are capped at 5% / 2.5% or 0% depending on when benefits were accrued.

[Countdown]

Fast and Spurious said:

Countdown said:

I believe Pensioner members of any of the Final Salary schemes will be getting a 10.1% pension increase.

Really? Most I know are capped at 5% / 2.5% or 0% depending on when benefits were accrued.

That's what i was told by one of the partners at Hymans Robertson who are the actuaries for some of the LGPS schemes.

ETA sorry I should have clarified that I was referring to Public Sector.

[snuffy]

The Leaper said:

snuffy said:

The Leaper said:

My State pension will increase by about 10% in April, so I will get a further £900 or so, less tax of course. My community charge will increase by close on 5%, so an additional £350, no tax allowance of course. Other things have/are/will increase too. Just sayin'

R.

Your coucil tax is £7,000 ?

(assuming when you say "community charge", you are referring to council tax that is.)

Edited by snuffy on Friday 17th February 11:40

The amounts I stated are annual, not monthly.

My community charge, ie what you call council tax, will be £3530 for the next year starting in April.

R.

So it's gone up 11% then ? You said 5% (5% of £7000 is £350).

It's not that I call it Council Tax, that's what it's called. It' not been called The Community Charge since 1993.

[Countdown]

The Leaper said:

snuffy said:

The Leaper said:

My State pension will increase by about 10% in April, so I will get a further £900 or so, less tax of course. My community charge will increase by close on 5%, so an additional £350, no tax allowance of course. Other things have/are/will increase too. Just sayin'

R.

Your coucil tax is £7,000 ?

(assuming when you say "community charge", you are referring to council tax that is.)

Edited by snuffy on Friday 17th February 11:40

The amounts I stated are annual, not monthly.

My community charge, ie what you call council tax, will be £3530 for the next year starting in April.

R.

I call it Danegeld. I know that's not what it's actually called but it sounds so much more impressive than mere "Council Tax"..

[The Leaper]

snuffy said:

The Leaper said:

snuffy said:

The Leaper said:

My State pension will increase by about 10% in April, so I will get a further £900 or so, less tax of course. My community charge will increase by close on 5%, so an additional £350, no tax allowance of course. Other things have/are/will increase too. Just sayin'

R.

Your coucil tax is £7,000 ?

(assuming when you say "community charge", you are referring to council tax that is.)

Edited by snuffy on Friday 17th February 11:40

The amounts I stated are annual, not monthly.

My community charge, ie what you call council tax, will be £3530 for the next year starting in April.

R.

So it's gone up 11% then ? You said 5% (5% of £7000 is £350).

It's not that I call it Council Tax, that's what it's called. It' not been called The Community Charge since 1993.

Blimey, didn't expect 3rd degree interrogation of my facts for a modest post. Anyway, to correct my earlier posts, my State pension is increasing by 10.1% which produces and increase of just over £900. My council tax is increasing by the maximum permitted amount which produces just under £200, and a revised total for the next year of about £3700.

Sorry for my earlier errors.

R.

[snuffy]

The Leaper said:

Blimey, didn't expect 3rd degree interrogation of my facts for a modest post. Anyway, to correct my earlier posts, my State pension is increasing by 10.1% which produces and increase of just over £900. My council tax is increasing by the maximum permitted amount which produces just under £200, and a revised total for the next year of about £3700.

Sorry for my earlier errors.

R.

No, you are quite right. I apologise .

[Mark83]

My company announced a 5% increase for everyone and those earning under £40k get another £100 per month for 12 months. I thought that was a decent offer, especially for the lower earners.

[pghstochaj]

Mark83 said:

My company announced a 5% increase for everyone and those earning under £40k get another £100 per month for 12 months. I thought that was a decent offer, especially for the lower earners.

Not ideal for those on 40,001 though who now get paid less than those on 39k. Unless the business checked that nobody was in that region.

[tredd]

Morning all!

I am currently in negotiations about my contract for a new job (private sector) and I would like to add into part of my counter back to them about inflation based pay rises.
Those who receive an inflation based rise, could I ask how this percentage is derived (what body determines this percentage, your company or the ONS RPI?). How often is this received, yearly, quarterly?

Many thanks!

[snuffy]

How can any company say what the rate of inflation is? Only the ONS can do that, surely?

[tredd]

snuffy said:

How can any company say what the rate of inflation is? Only the ONS can do that, surely?

Hi Snuffy, that’s what my query pertains to. I’m trying to determine how this is calculated most ‘commonly’.

[RayDonovan]

Never heard of this. How's that going to work for you when inflation drops?

[22]

tredd said:

Morning all!
I am currently in negotiations about my contract for a new job (private sector) and I would like to add into part of my counter back to them about inflation based pay rises.
Those who receive an inflation based rise, could I ask how this percentage is derived (what body determines this percentage, your company or the ONS RPI?). How often is this received, yearly, quarterly?
Many thanks!

Mine is RPI and adjusted once a year on the anniversary of signing the contract. Inflation was next to nothing when I asked for it to be added to my contract, it's been much higher since (I hadn't envisaged that, was just a protective measure).

Our customers also receive an RPI increase and a couple have mentioned that CPI is a better reflection of inflation.

[Jonathan27]

tredd said:

Morning all!

I am currently in negotiations about my contract for a new job (private sector) and I would like to add into part of my counter back to them about inflation based pay rises.
Those who receive an inflation based rise, could I ask how this percentage is derived (what body determines this percentage, your company or the ONS RPI?). How often is this received, yearly, quarterly?

Many thanks!

In order to get this you would either a) need to be working for a small business that can be flexible in its terms or b) be VERY valuable to the business overall. I've always worked for large multinationals and even at fairly senior levels this wouldn't be approved.

Its a nice thought but fairly unlikely to succeed in my experience.

[snuffy]

tredd said:

snuffy said:

How can any company say what the rate of inflation is? Only the ONS can do that, surely?

Hi Snuffy, that’s what my query pertains to. I’m trying to determine how this is calculated most ‘commonly’.

Oh, I see. In that case, most companies will use the CPI (as the ONS/HMG no longer uses the RPI as the recognised value, although they still calculate it).

In my case, my company just says "here's X%, take it or leave it".

[snuffy]

RayDonovan said:

Never heard of this. How's that going to work for you when inflation drops?

Then you'll get a smaller percentage increase.

But I suspect you mean, what happens if inflation is negative, as opposed to simply reduces ?

Didn't this happen a few years ago when interest rates fell and some people were on tracker mortgages of say "Base rate - X%" where "Base Rate" was smaller that "X" ?

The result was, in theory, that the bank should be paying people each month. This happened because the banks never expected the base rate to be so low, and so never took that into account.

[AndyAudi]

tredd said:

Morning all!

I am currently in negotiations about my contract for a new job (private sector) and I would like to add into part of my counter back to them about inflation based pay rises.
Those who receive an inflation based rise, could I ask how this percentage is derived (what body determines this percentage, your company or the ONS RPI?). How often is this received, yearly, quarterly?

Many thanks!

In my experience of mine & doing others pay reviews in private sector, inflation based pay rises are not really a thing to be negotiated in a contract.

In private sector we can reward good guys with higher rises than the underperformers much easier than appears to be the case in the public sector.
I’d suggest focusing on asking how you can be rewarded for going above & beyond rather than how you can get your pay to go up regardless of how you perform - private sector is usually more focussed on performance rather than employees.

Eg If say inflation was 4% we’d have employees getting 2/4/6 % increments as standard raises. ;& prob sone getting none or more In exceptional cases

There also needs in my opinion to be a degree of flexibility in private sector, when businesses suffer it’s not great to have to be committed to shelling out increased wages bills in times of high inflation.

[InformationSuperHighway]

Per above, for private sector jobs, companies should always benchmark to market rates for the role rather than inflation.

I've never worked at a company that gives cost of living or inflation based raises. As mentioned above, it should work both ways for low inflation years and then only give out 1% raises.