promotions/bonuses/quarters

[Lalaunder]

Namechanged. DH told me something this morning and I wondered how standard this is in big corporates/if it makes sense.

Dh due a promotion imminently - this was planned for Q4 (so October) where he goes up a pay grade and his title changes. Apparently the company ‘always’ gives all employees a bonus rise of 5 or 10 percent each January…

DH told me that a colleague advised him that you don’t get the rise if you’ve been promoted in the previous quarter, but you do get it if you’re promoted in the same quarter 🤔 so it might make financial sense for him to hold off taking the promotion until January.

This seems weird to me, and I also can’t work the maths out! Can anyone help? We are struggling financially and DH has been known not to be totally transparent when it comes to money!

Companies have different rules.
Where I work, if you have had a salary rise or promotion within the last 6 months you are not eligible for the usual annual increment as you have recently moved up a grade or had an adjustment.

It may be a rule like that which your DH has misunderstood

Yes it seems odd to me that he could be promoted the same month and get the bonus, but not if he was promoted 3 months earlier - unless he meant that the promotional salary wouldn’t kick in until Feb?

I also can’t fathom the maths. Obviously there’s tax implications but let’s say the annual salary was due to increase by 20k with promotion. 4 months on increased salary, or bonus on lower salary. Which is better?!