I've just been asked by my employer (large multinational company) to accept a lump sum instead of a pay rise this year. The lump sum is minimal as the pay rise isn't much (still better than the zero we've had recently). My salary will remain the same as it is currently.
This is because apparently I'm reaching the ceiling of my pay band, which I wasn't previously aware of. I've been on this pay band for about 4 years and it has never been an issue before.
Shouldn't the pay band be widened to take annual pay rises into account? This isn't a promotion, it's a 2% increase across the board.
I work part time so 2% doesn't amount to much really. My only issue is that I will lose out in future years as any further increases will be based on my current salary rather than current+2%, this doesn't make a huge amount of difference in real terms but just doesn't seem fair/right somehow.
I've been told that I can either accept the lump sum or have my salary capped and I have to decide by tomorrow morning. I've asked for more info regarding the exact limits of the salary band from my boss so I can do some number crunching of my own, waiting to hear back.
TIA for any insight anyone might have.