Salary increases for 2013

[I.am.Sam]

If they offer me anything lower than inflation I'm going to speak up...failing which I'm packing my bags.

the druggy stole a sub from your car ..you kept quiet

go home grow some balls then come post again

 

[bar1]

I got a 7.5% increase....not bad considering last time i got an increase was maybe 5 years ago!!!
I used to work for a company who never gave me an increase , left them after 3 years (yes i know...what took me so long?), started a job at a higher rate, got retrenched and started a job at a higher rate again....so enjoying my first increase in a long time...but should have been a bit more.

 

[kripstoe]

Considering that your pension etc deductions are (or should be) calculated as a percentage of your CTC, you can't increase cash portion only without increasing the other bits as well.

Yes, I understand that. I think my question came out wrong. In general, is there a difference in increases of those who do get benefits, as opposed to those who do not. Might be completely irrelevant point, but I'm still curious.

Also, tax bracket? That has zero impact. You don't suddenly get taxed at a higher rate on your entire salary, only on the portion that is above the threshold.

Again, I might have been too simplistic in my question. I was trying to get the point across where if you used to pay R10k tax on your salary and now pay R11k, people forget about the additional tax after the increase. So it's not really a 10% more cash in your pocket increase. So what in real terms is a good increase. And opinions will obviously vary.

 

[Alton Turner Blackwood]

the druggy stole a sub from your car ..you kept quiet

go home grow some balls then come post again

Tsek!

 

[deweyzeph]

In this current economic climate you're lucky to get to keep your job, nevermind get an increase. A lot of people won't be getting any increase.

 

[bar1]

In this current economic climate you're lucky to get to keep your job, nevermind get an increase. A lot of people won't be getting any increase.

yep...i was gonna say the same thing.

 

[kripstoe]

In this current economic climate you're lucky to get to keep your job, nevermind get an increase. A lot of people won't be getting any increase.

True, but a lot will be getting.

 

[Alton Turner Blackwood]

Not getting anything over inflation means you're actually getting poorer.

 

[azbob]

Not getting anything over inflation means you're actually getting poorer.

exactly. You are clever fish. You'll get 10%.

 

[Messugga]

10%? Does anyone here get 10%??!!

I got 20% last year, at my previous job. Then I got another 20% when I moved to this job. Doubt that'll happen this year though - probably somewhere between 5% and 10% can be expected.

 

[MickeyD]

Not getting anything over inflation means you're actually getting poorer.

Losing your job being the endgame in a year or so's time?

 

[Paul_S]

What's a fair increase (percentage wise) in real terms?

A fair increase would be 10% but I doubt most people will get more than 7 or 8% this year if at all.

If you get a 10% increase and your marginal tax rate is 30%, take off 3% leaving an effective increase of 7%.
Then deduct the inflation of 5.7% and you're down to an effective increase of 1.3%.
Then deduct the increases in your pension/provident fund contributions and you'll be lucky if it balances out at 0%.

If you get 7 or 8% you're more than likely becoming poorer every year like most of us.

 

[Pho3nix]

Already got my increase from last year, making 320% more then I was making last year around this time. Hope it last's though. This might be the last increase I see for the next 5 years

 

[Biscuit1018]

A fair increase would be 10% but I doubt most people will get more than 7 or 8% this year if at all.

If you get a 10% increase and your marginal tax rate is 30%, take off 3% leaving an effective increase of 7%.
Then deduct the inflation of 5.7% and you're down to an effective increase of 1.3%.
Then deduct the increases in your pension/provident fund contributions and you'll be lucky if it balances out at 0%.

If you get 7 or 8% you're more than likely becoming poorer every year like most of us.

Come on guys, you can't categorise provident fund as a tax or an expense.
Its a compulsory investment.
You have to do it
Its tax deductible

You also cant look at this regardless of experience.
Educated, younger people grow fast in earlier years.
As you get more senior it is difficult to achieve good %s even if your performance is good


This is some area I have some expertise both in my corporate career and my own business.
I have a substantial network of Directors etc and I get intelligence into what companies are doing.

First up
* Inflation is relevant but it's never a minimum nor should it be. It helps establish the pot

Anyway what companies generally do is
* They budget around the inflation mark maybe a little less (because new people dont get increases and the sucky people dont deserve increases)
* They do some market analysis to establish a mid point relative to a job
* They then measure people against the midpoint
* They put performance onto the spreadsheet
* They work out what they might like to give people
* These days many companies are giving zero to the poorer performers or those that are overpaid so they have more money in the pot for the others.

THEN most important
* They look at their own financial performance and work out a total pot % increase
* Managers get told they can distribute say a 6% increase in Salary Pot. That means some people could get 15% and some may get 0%. Most will be near the mid point
* This is important - The pot may not be exceeded. You give Joe and extra R100 you have to take R100 away from Pete
* They dont find more money just because it doesnt balance neatly.
* Companies make calculated decisions based on Retention Risk and Impact of Loss. It sounds unfair but tough

Ito of average increases the range I have heard in pot changes are between 4% and 7%. This is across about 10 IT intensive companies.
On its own it means little because of the robbing Peter to pay Paul

 

[CyraxHB]

I got 42% last year. Will probably get about 15% this year.

And looks like bonuses will be good too. Have to wait for march though

 

[Paul_S]

Come on guys, you can't categorise provident fund as a tax or an expense.

It's all good and well having a pension/provident fund but that only benefits one if you retire or are retrenched.
It provides no immediate cash flow that can be used for day-to-day expenses so it may as well be deducted from the increase.
What do you tell a person who has to survive on less each year?

You also cant look at this regardless of experience.

What has experience got to do with getting an increase that does not keep up with inflation?
Or sorry ... you're not as experienced as programmer Y so therefore you do not deserve to eat this year?

I understand the predicament that private business faces in this tough economic climate but CPI + 1 or 2% isn't an increase.

 

[ToxicBunny]

It's all good and well having a pension/provident fund but that only benefits one if you retire or are retrenched.
It provides no immediate cash flow that can be used for day-to-day expenses so it may as well be deducted from the increase.
What do you tell a person who has to survive on less each year?



What has experience got to do with getting an increase that does not keep up with inflation?
Or sorry ... you're not as experienced as programmer Y so therefore you do not deserve to eat this year?

I understand the predicament that private business faces in this tough economic climate but CPI + 1 or 2% isn't an increase.

Unfortunately anything over 0% (CPI not taken into account) is an increase... its not the companies problem if you can't buy the same stuff this year that you did last year.

 

[kripstoe]

Unfortunately anything over 0% (CPI not taken into account) is an increase... its not the companies problem if you can't buy the same stuff this year that you did last year.

If you do not take care of the employees/assets that make you money, you're not going to grow or stay open long. So it is their problem.

 

[ElecEng]

Should it be in April? When is financial year end? Should be around 10% minimum or you should resign.

Abzo, I normally agree with you, but not this time. Why do people deserve anything above inflation? Unless you are being more productive or have got a promotion I wouldn't pay you more. Some people do deserve increases above inflation as they learn and develop, but most people not!

 

[HavocXphere]

So, get one?

Yep. Got a couple times CPI. Thats off a reasonably low base though, so I'm not buying a lambo anytime soon.

What's a fair increase (percentage wise) in real terms?

Pointless question. Increases should be performance linked, so there isn't really one fixed fair percentage.

I'd be fckin pissed though if mine isn't consistently above CPI at least.

*Fixed stupid typo