Percentage increases are rubbish 3% of nothing is nothing!

[Workissues1]

So NMW is going up by 6.7%. I’m all for this as it’s way too low presently.

My AIBU is that I am above minimum wage. Last year we received a raise of 3%, anyone above minimum wage.

Last year, my increase didn’t cover the amount rent, service charges, council tax, bills went up. This year I am effectively worse off than last year.

Without wanting to be outing I have access to other employees pay. By comparison a minimum wage worker who works unsociable hours (shift premium) earns just under me.

I currently have opted out of the company pension scheme. I cannot afford the deductions. With this factored in they are probably earning/costing the employer more than me.

I am monthly paid so it is expected to put in unpaid overtime if required (weekly paid get OT at an increased percentage on basic x1.3, x1.5,x2)..

I realise this is a bit long winded, but I’m in a skilled position, Also, I’m in a sole role. Any time off requires planning, overtime prepping before I go away. Can’t book hols certain times of the year et and can be extremely stressful.

So, AIBU to expect that if employers give a percentage increase that this should apply to those over a certain amount? There’s a big difference in a 3% increase to someone on say 30k to 100k?

Also. any advice on how to word this to said employer when we get the inevitable 3%.

Some years we give a percentage, this year we're giving everyone a flat amount which will impact the more junior staff more. Ultimately, the leaders in your organisation need to keep the organisation afloat, with the increases to NI the payroll cost will have shot up, the government say they won't tax workers, but it has a similar impact, but they take less of the flack, it is their choice. If you think what you are being offered is wrong, then look for other jobs. 3% isn't awful this year, last year it wasn't great, what did you get two years ago?

Sorry you’re in this position OP. It’s shit.

This is exactly why unions exist and they work. Is there one you can join?

@ACynicalDad about the same in 2023.
I know the increases are not great for employers but my employer couldn’t previously claim employers allowance. They will be able to in the next tax year due to these changes so it offsets a bit.

Yes, ofc I can go get another job, but surely the percentage’s should be tiered. As stated in OP there is a bit difference between 3% of £30k & £100k.

There will be no point in choosing a middle management position soon if this continues. Why would someone choose sleepless nights, unpaid overtime, stress etc when better off working stacking shelves at a supermarket 🙄

I’ve also have an education & been in a similar role for 25+ years.

Thank you for your reply.

No, unfortunately not.

They do have a union at one of the other sites (we are a group) but it’s not open to join for our site or new members (I’m not new 9 years).

Do you think it would be worth joining an external one? It’s something I’ve wondered about.

I do see your point OP, but if lower paid workers always got a higher percentage increase than higher paid workers, then the difference between the two groups would completely disappear over time.

Which is what’s happening to me.

Yeah, I know - things are tough atm, and for a lot of people.

Salaries have stagnated in my specialism as well, it isn't really fair for the amount of responsibility we have.

Yes, I understand what you are saying.

Basically NMW keeps going up, as mandated by the government, but other wages are stagnating. So the gap is narrowing.

So, as you say, why would somebody bother with further study, qualifications, stress, responsibility…if they can close to the same money without all that.

It is shit.

3% is the standard performing rate in this country - completely eliminated, considering the double digit real inflation trends. If you're skilled, look for another job.

If you are in the UK, you can join any union that you like- including the one on the other site. You pay direct debit instead of through your salary.
Your employer (unlesz brilliant) will discourage this because inevitably, a unionised workforce means better terms and conditions for the employees and les profits for the owners.

Many companies are only offering 3%.

Wording it to your employer doesn’t need to involve NMW at all. You can just point out that as your own increase is less than inflation (assuming this is true when it comes) it is effectively a decrease in the value of your salary.

Many companies aren’t increasing wages at all (obvs outside of complying with NLW) - I’ve not had a raise in years. The increase in NI etc for companies in conjunction with the increase to NLW is going to cripple some businesses

If you’re salaried, paid close to NMW, and you’re working unpaid overtime on a regular basis, it’s highly likely your employer is in breach of NMW.
If you take your pay after salary sac pension (N/a for you), divide it by the number of hours you worked in that pay period you’ll get your hourly wage. If this is below NMW there’s a problem. Do this for each month across a year (use your work anniversary) and see what your underpayment is across your year. You can speak to ACAS for more guidance but also raise with your employer too.

Opting out of the pension scheme is a huge mistake and one that you will sorely rue. Old age arrives faster than you think.

I agree. And also the jobs paying minimum wage tend to be things like retail and hospitality so all of those put their prices up. And those of us not seeing these percentage increases are less and less able to afford the services.

I'm in favour of a decent minimum wage but something needs to change.

This is happening in my work too. They’ve actually gotten rid of the bottom of the pay scale as the bands narrowed to the point it became unfeasible. So lowest is grade 2. It did used to be there was substantial pay increments with in the grades but now they are pennies. The pay difference between grade 3 and 4 isn’t much but grade 4 is working charge hand (supervisor who works alongside) with all the stress that brings.

Just picking up your point that those on NMW working unsociable hours are approaching your salary.
Unsociable hours payments can make a huge difference and rightly so. In my company it can be 40% of salary. So yes, lower grades who do weekends and nights and variable shifts actually earn more than their 9-5 managers. That is as it should be. We struggle to recruit shift workers more than 9-5 ers. Flexibility and shift work needs paying for.

So, the inevitable has happened the 3%.

Others up the chain have had much higher percentage increases.

I’m done, minimum wage job with PAID overtime it is.

@Changeissmall . Thing is I can work unsociable hours, do overtime (I’ve done enough of it FOC)

Our percentages are not that high in terms of shift work.

Just been with the company so long, it’s a pity. I enjoy working there but I have no choice but to move on……..