what is a good pay rise?

jairaj
jairaj Posts: 3,009
edited April 2011 in Commuting chat
The average salary thread from the other day got me thinking. Its coming up to the time of the year when my company tells us how much pay rise we get. So I was wondering how much is good and how much is bad based on a percentage of your current salary?

Previously in my current work place I've either been on pay freeze or I've been a "Graduate" so the pay scheme has been different and not normal.

Everyone well most people always want more but ow do I know if what I've been given is good and just need to stop being a greedy pig?
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  • itboffin
    itboffin Posts: 20,064
    jairaj wrote:
    The average salary thread from the other day got me thinking. Its coming up to the time of the year when my company tells us how much pay rise we get. So I was wondering how much is good and how much is bad based on a percentage of your current salary?

    Previously in my current work place I've either been on pay freeze or I've been a "Graduate" so the pay scheme has been different and not normal.

    Everyone well most people always want more but ow do I know if what I've been given is good and just need to stop being a greedy pig?

    If you're getting any kind of pay rise you should count yourself lucky.
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  • CiB
    CiB Posts: 6,098
    43% would be good, if a bit unexpected.

    Anything around inflation is ok. Like ITB says tho, having a job is good these days.
  • sketchley
    sketchley Posts: 4,238
    More than you were expecting.
    --
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  • John0611
    John0611 Posts: 20
    We got 1.5% and a lot of people were not impressed. I can understand that a lot of people will feel any type of raise is good in the current climate but the company i work for and industry as a whole have not been badly affected by the down-turn and are doing very well. Previously ours have been in line with inflation but that was never going to happen this year!
  • DonDaddyD
    DonDaddyD Posts: 12,689
    ^^This^^

    Only significant payrise I notice is when I start a new job and/or gain a promotion. As that's when my pay gets increased significantly.

    Generally speaking there isn't much difference if I was paid up to £5,000 more. It would amount to £200 in real terms monthly take home pay and that would get swallowed up.
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  • mudcow007
    mudcow007 Posts: 3,861
    i havent had a yearly pay increase in 2 years
    Keeping it classy since '83
  • Aidy
    Aidy Posts: 2,015
    You really want inflation (so that your salary goes up in line with how much stuff costs) + a bit (for being better/worth more to the company).

    By the sounds of it, it doesn't happen all that often though.
  • jairaj
    jairaj Posts: 3,009
    Pretty much as I was thinking then.

    To be honest, I earn enough to pay the bills and a bit more to spend on having fun so I can't complain what ever I get.
  • Wallace1492
    Wallace1492 Posts: 3,707
    ^^^^^^^ That. Very lucky that you cannot notice a £5,000 pay rise.
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  • daviesee
    daviesee Posts: 6,386
    To get a good pay rise you need a promotion or a new job.

    Anything above inflation can be considered good but it's not going to affect your life.
    None of the above should be taken seriously, and certainly not personally.
  • greg66_tri_v2.0
    greg66_tri_v2.0 Posts: 7,172
    DonDaddyD wrote:
    ^^This^^

    Only significant payrise I notice is when I start a new job and/or gain a promotion. As that's when my pay gets increased significantly.

    Generally speaking there isn't much difference if I was paid up to £5,000 more. It would amount to £200 in real terms monthly take home pay and that would get swallowed up.

    You in the 50% tax band, DDD? Blimey. Who says there's no fat to be trimmed from the NHS? :twisted:
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  • il_principe
    il_principe Posts: 9,155
    Any payrise is a good payrise! I've just had my first in 3 years. It wasn't much but it was welcome, and I worked bloody hard for it.
  • Aidy
    Aidy Posts: 2,015
    DonDaddyD wrote:
    Generally speaking there isn't much difference if I was paid up to £5,000 more. It would amount to £200 in real terms monthly take home pay and that would get swallowed up.

    You could argue the reverse, that there's not much difference if you were paid £5000 less, you'd just cut a few costs elsewhere.

    It's pretty much what you do with it that counts.

    [Edit]
    A new Ultegra drivetrain (rings, cassette, chain) comes to sub £150, by my reckoning, new drivetrain every month for those who complain about component longevity/cost?

    (or new Dura-ace every other month).
    [/Edit]
  • rick_chasey
    rick_chasey Posts: 75,661
    edited April 2011
    I work in a small firm, and I was taken on as a graduate.

    Got my pay rise yesterday.

    In my head I was thinking 5% extra to counter inflation, and 5% on top because I'm clearly a better value worker now I've worked there for a year than when I started, plus the element of risk that I'm totally sh!t is reduced since they've spent almost a year with me. That seemed reasonable, having discussed it with people who decide pay of people of similar age, experience and skill.


    In the end I got a 12.5% increase roughly > but that was in part to counter the poor bonus I got > Our team (of 2) made loads of money > the business didn't so the bonuses were down.

    I'm very pleased, and naturally think this is a good pay rise....
    _
  • Aidy
    Aidy Posts: 2,015
    daviesee wrote:
    To get a good pay rise you need a promotion or a new job.

    I think this is pretty much the case, certainly in IT - and new jobs are easier to come by than promotions (and generally the reward is higher, too).

    I've done reasonably well by sticking where I am and arguing my case, but I know I'd do better to look elsewhere....
  • rjsterry
    rjsterry Posts: 29,391
    Greg66 wrote:
    DonDaddyD wrote:
    ^^This^^

    Only significant payrise I notice is when I start a new job and/or gain a promotion. As that's when my pay gets increased significantly.

    Generally speaking there isn't much difference if I was paid up to £5,000 more. It would amount to £200 in real terms monthly take home pay and that would get swallowed up.

    You in the 50% tax band, DDD? Blimey. Who says there's no fat to be trimmed from the NHS? :twisted:

    And to think, he's having a dig at you G66 for waving a wad of money about (figuratively speaking). Stand by to be flamed DDD :wink:
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  • gtvlusso
    gtvlusso Posts: 5,112
    Hmmm - Case and example.

    I hit the ceiling of my pay scale at my previous job.

    Even though my performance review was very good, I was told that I could not have a payrise as they could not put me on the next scale. I had to wait for everyone else at my grade to catch up......

    However, I did get good bonuses - when my boss wasn't being a tw@t.

    So, I left that company and went to a massive company.

    I now earn a bit more money, but the massive company I am in has not given out payrises for something like 6 years - according to my long term colleagues. Bonuses have been paid half yearly amounting to £50 for a great performance review.

    Effectively, I have taken pay cuts (with shite payrises) for about 6 to 8 years now with the rate of inflation and cost of living. Even with very good performance reviews; the private sector is simply lining a few pockets further up the chain from me.

    I have definitely found life financially harder this year, so far.

    On the flipside to this - One of my mates works for the MOD. He is just below me in the organisational charts (kinda comparable) - Earns £12,000 more per annum than I do and has a fixed payrise for the next 2 years (3.7%). He is also on a bonus scheme that is still paying out in the "thousands". He also takes Fridays off for childcare reasons by flexing his hours - I am not allowed to do this, although I can flex my daily hours a bit.

    IMHO - Public sector pay out stripped private sector pay and condition around 6 years ago. Fixed high percentage payrises without performance relationship - development of Public Sector bonus schemes and some great pension benefits and flexi working benefits.

    And now the public sector cannot support the infrastructure and employee expectation it created, that is paid for, in part, by the Private Sector....

    Ultimately - Pay has not kept up with living costs for the average worker. But for a few top end people, the world has become a very luxurious place. And quite a few Public Sector employees have had a well paid and easy few years.
  • Clever Pun
    Clever Pun Posts: 6,778
    while bouns's are all well and good, it's the payrise that's the important part

    DDD's not in the nhs for his math.. under the high tax band you see around £75pcm for a 1K payrise and £50 above that... I'm taking a punt but the super band you probably see feck all :lol: and you don't care
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  • bails87
    bails87 Posts: 12,998
    I'll be getting less than 4% if I keep my job. And I'll never get a bonus.
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  • rick_chasey
    rick_chasey Posts: 75,661
    gtvlusso - I think it's much more related to the specific industry rather than private vs public.

    Like I said, I got a pretty good pay rise and I was neither promoted nor changed jobs.
    _
  • rick_chasey
    rick_chasey Posts: 75,661
    Clever Pun wrote:
    while bouns's are all well and good, it's the payrise that's the important part

    DDD's not in the nhs for his math.. under the high tax band you see around £75pcm for a 1K payrise and £50 above that... I'm taking a punt but the super band you probably see feck all :lol: and you don't care

    That depends on how the bonus is paid out and how much it is.

    around 20-30% of my TC comes in the form of bonuses.
    _
  • Aidy
    Aidy Posts: 2,015
    Clever Pun wrote:
    while bouns's are all well and good, it's the payrise that's the important part

    DDD's not in the nhs for his math.. under the high tax band you see around £75pcm for a 1K payrise and £50 above that... I'm taking a punt but the super band you probably see feck all :lol: and you don't care

    £5k does work out at about £200/month if there's student loan repayments involved.
  • cee
    cee Posts: 4,553
    I got just over 5% increase in january...

    first rise for 3 years....
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  • Clever Pun
    Clever Pun Posts: 6,778
    Aidy wrote:
    Clever Pun wrote:
    while bouns's are all well and good, it's the payrise that's the important part

    DDD's not in the nhs for his math.. under the high tax band you see around £75pcm for a 1K payrise and £50 above that... I'm taking a punt but the super band you probably see feck all :lol: and you don't care

    £5k does work out at about £200/month if there's student loan repayments involved.

    doesn't that come out of your bank account rather than through paye? otherwise we start taking rent etc it's about take home pay no?


    Rick 20% of a stagnant salary is great but it's not as good as a 5% raised salary then subsequent 15% bonus for example... Well that's howI've always figured it. Don't get me wrong a bonus is great but I've always treated it as that.. a bonus.
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  • davis
    davis Posts: 2,506
    Hmm. I haven't had a increase in my basic salary in 4 years.

    Having said that the amount of extra (commission, kinda) has increased.
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  • bails87
    bails87 Posts: 12,998
    Clever Pun
    No, student loan comes out of your pay before you get it, as a deduction on your payslip.
    MTB/CX

    "As I said last time, it won't happen again."
  • rick_chasey
    rick_chasey Posts: 75,661
    Clever Pun wrote:

    Rick 20% of a stagnant salary is great but it's not as good as a 5% raised salary then subsequent 15% bonus for example... Well that's howI've always figured it. Don't get me wrong a bonus is great but I've always treated it as that.. a bonus.

    Yeah, but it depends what industry you're in.

    A small sales based firm, by its very nature, pays you on the fees you generate.

    When it's such a large proportion of your income you can't just treat it like a 'bonus', unless you're earning enough on the salary where that's not an issue > in which case, you need to wonder why the system is in place!
    _
  • gtvlusso
    gtvlusso Posts: 5,112
    Rick Chasey wrote:
    gtvlusso - I think it's much more related to the specific industry rather than private vs public.

    Like I said, I got a pretty good pay rise and I was neither promoted nor changed jobs.

    This is true - I don't know of anyone in Pharmaceuticals complaining about pay! I work in Technology - Specifically Telecoms software for a company with 65,000 employees.

    But I do believe that the Public Sector has had it very easy for quite a while and I am not really prepared to listen to the moaning from that environment regarding their current circumstance - they can muck in like the rest of us have to.
  • Aidy
    Aidy Posts: 2,015
    Clever Pun wrote:
    Aidy wrote:
    £5k does work out at about £200/month if there's student loan repayments involved.

    doesn't that come out of your bank account rather than through paye? otherwise we start taking rent etc it's about take home pay no?

    Nah, it's PAYE'd. And based on the amount you earn above a given limit (so the more you earn, the more comes out).

    At least mine is, possibly older systems aren't.
  • rick_chasey
    rick_chasey Posts: 75,661
    gtvlusso wrote:
    Rick Chasey wrote:
    gtvlusso - I think it's much more related to the specific industry rather than private vs public.

    Like I said, I got a pretty good pay rise and I was neither promoted nor changed jobs.

    This is true - I don't know of anyone in Pharmaceuticals complaining about pay! I work in Technology - Specifically Telecoms software for a company with 65,000 employees.

    But I do believe that the Public Sector has had it very easy for quite a while and I am not really prepared to listen to the moaning from that environment regarding their current circumstance - they can muck in like the rest of us have to.

    I see you've bought the "we're on all in this together" line.

    Maybe you should move to the public sector if you like the renumeration/lifestyle there.
    _

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