What do you call a pay rise that isnt

Lets spell this out simply ...

Since 2010 inflation has averaged 2.7%, according to the Bank of England.

So anyone who hasn't had a pay rise for 7 years has basically had a pay reduction.

7 years x 2.7% = 18.9%

Anyone who hasn't had a pay rise for 7 years has in effect had a pay cut of 18.9% on average.


Whilst any pay increase is not to be sniffed at its hardly a flag waving event when people are still on a pay cut.  Even if people achieve a pay increase of 4% they will still be sitting on a pay decrease of 14.9% over 7 years.

A proper pay rise would be 19% because even tho the actual rise is only 0.1% it would actually be a rise.

I'm not even sure what you can call a pay rise that isn't a rise.





















LINKS
http://www.bankofengland.co.uk/education/Pages/resources/inflationtools/calculator/default.aspx