Getting poorer

Cius

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So its annual increase time for me in 2 months time and I was doing some research as every year I feel poorer. 3 years ago I was living comfortably and even putting huge extra payments into my bond. 3 years later I feel like I am scraping by. The main reason being my increases in the past 3 years have average around 4.5 to 5% and my real inflation has been significantly higher than that. Electricity, food, and medical aid costs in particular have been upwards of 10% most of the last 3 years. My only bill that has been flat for 3 years is my Afrihost bill!

Coupled to this tax has been steadily increasing in the same period due to the outrigh 1% hike on personal income tax and the tax man adjusting the brackets each year in a way that is steadily increasing personal tax.

When I queried the low raises with my manager I was told I was the lucky one as the company as a whole was doing a standard of increase of 3 to 4% with some getting less than that for under performance and people like me getting more actually due to good performance. While that helped soften the blow it still means each year I get poorer.

I am wanting to go into my next negotiation with a bit more information to see if this is normal or if other companies are actually keeping up with inflation.

So the question is what have been your annual increases for the past 3 years if you don't mind sharing (in percentage form). Increases due to promotion or skill level jumps should be flagged as such. For instance I got one of those 4.5 years ago in the form of a 20% out of cycle increase. They did it when they where trying to replace one of my collegues who left and realized that they where underpaying their staff by a fair margin and hence where loosing them steadily.
 
Time for a new job. You're never going to get that 15-20% increase anymore by staying put. 3 years sounds about the right time to start looking anyway. Plenty of companies will now cite the poor economy as a reason for low increases...
 
Same job since 2012 (Looking for change, will complete my degree this year)

2013 - 6.5% increase
2014 - 6.5% increase
2015 - 0% increase
2016 - 7% increase

The 2014/15 financial year was a train wreck and while we did receive increases last year, the company started shedding jobs.

But overall, yes, I feel poorer when I look back at what I could do 5-years ago. One bit of light for me this year is the fact that I pay my car off at the end of March and - baring something awful - it will be the last year I need to worry about university fees and textbooks.
 
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Apart from the company undervaluing you, you really have to start looking at getting alternative income streams. Even if it is small amounts every month. Passive income looks to be the only real way of moving forward in life. And it has a snowball effect. The more you invest/buy in to small companies/etc the more you will be able to invest and supplement your income.
 
Wish people would stop talking rubbish about the economy being bad. It is not. When entire industries can shut down for an entire month or longer to go on vacation, the economy is just fine. When the majority of companies give the level of service which has become a trademark in this country, the economy is just fine.
 
I know that management where I work values me as they give me good bonus's ,responsibility, flexi time etc where I am which is what they have control of. The % raise however is less in their control. HR gives the average for the organisation and they have to do the best with what they are given which does not sound like much. So I have no issue with my line manager and like the guy a lot, what I am trying to figure out is if the larger group organisation is being reasonable by giving bellow inflation increases if other organisations are not doing the same.

If I get another bellow inflation increase though I am guessing I will start putting my CV out there and see if I get much better offers from elsewhere. Thing is I am not keen to leave the medical aid which is a closed in house medical aid just for my company. Took me two years to get all the chronic stuff set up for a family member of mine and if I move I will have to start at square 1. Hence me rather wanting to negotiate a higher one rather than leave.
 
Wish people would stop talking rubbish about the economy being bad. It is not. When entire industries can shut down for an entire month or longer to go on vacation, the economy is just fine. When the majority of companies give the level of service which has become a trademark in this country, the economy is just fine.
Unfortunately they won't, not when it comes to increases anyway...
 
Who's to say OP's bonus is a bonus, and is not just a portion of their salary reserved each month to make it look like a bonus?

Agreed. In many industries, this is just the way pay is structured. The bonus is not guaranteed, but short of exceptional circumstances, it is usually expected.
 
Thanks, appreciate all the comments, including Jacky Chan! This is what I am trying to figure out. Am I being unreasonable and ungrateful in a tough economy, or has SA moved on from the crash and my company is slowly downgrading my salary.

Just a note. I am very grateful to have gotten a bonus every year since I started working 10 years ago but at the same time I hate relying on a bonus for monthly expenses as they are never guaranteed. Right now I am in the position where if I don't get a bonus I would struggle to pay school fees which is what is worrying me so much. I can't keep relying on the bonus each year to balance my budget and I am not exactly living large. I work in a top finance industry (investment banking) and unlike most of my collegues I drive a 1300 tazz with no power steering or aircon. I live in a modest area and am zoned for a decent ex model C school as we can't afford private. My son starts grade 1 next year which will help as the creche's are all private and a lot more expensive than the actual school but still, everything just feels stretched when it comes to my budget.
 
I know that management where I work values me as they give me good bonus's ,responsibility, flexi time etc where I am which is what they have control of. The % raise however is less in their control. HR gives the average for the organisation and they have to do the best with what they are given which does not sound like much. So I have no issue with my line manager and like the guy a lot, what I am trying to figure out is if the larger group organisation is being reasonable by giving bellow inflation increases if other organisations are not doing the same.

If I get another bellow inflation increase though I am guessing I will start putting my CV out there and see if I get much better offers from elsewhere. Thing is I am not keen to leave the medical aid which is a closed in house medical aid just for my company. Took me two years to get all the chronic stuff set up for a family member of mine and if I move I will have to start at square 1. Hence me rather wanting to negotiate a higher one rather than leave.

It may be worth putting your resume out there regardless. You don't have to take the offers - if you get something dramatically better, take it or use it to renegotiate, if not, it should help satisfy that nagging concern that you are being underpaid.
 
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