Base an increase on CPI or CPIX

[noxibox]

I agree, work out your own inflation rate. Also are you a skilled person your employer cannot afford to lose? Get the biggest increase you can as future increases will be built upon it. If you have a skill in demand and your employer won't pay, then it is time to shop around for new employment.

 

[PJS]

I need to draft a recommendation on a salary increase and would like to know if basing it on CPI or CPIX is a good way to go? Any other suggestions?

Using CPI or CPIX is not the way it's done in most corporate. Staff cost in most industries except to the likes of manufacturing is the biggest cost component. So I'd say that it starts with the financial return obligations of the company and then you can start playing around with scenarios. Obviously if you want a motivated workforce and happy unions (if that's possible) the increase cost on the total salary bill at a given time should be higher than or as close as possible to the YTD inflation. But it's a function of the company’s ability to deliver an increased return on the additional spend. Whatever % is decided on then gets allocated to individuals based on performance..