annual salary review

nosebleed · 19-03-2008 3:12pm #1

hi everybody!

I've just had my annual salary review from the company i work for (an american multinational one) and i was wondering how can it be possible that it is LOWER (3.5%) than the annual CPI increment in Ireland (4.8% - please check here: http://www.cso.ie/releasespublications/documents/prices/current/cpi.pdf ).

That means that in the end, I lost 1.3% of my buying power!!!

I found somewhere in the web that "It is usual to provide for the annual review of basic salary, and that it be at least as much as the rise in the Consumer Price Index." ( http://www.researchcareersireland.com/Page.aspx?SP=67 )

I'm not Irish, but I think this can't be legal in any EU state...any ideas?!?

cheers!

John_Mc · 19-03-2008 3:15pm

nosebleed wrote: »

hi everybody!

I've just had my annual salary review from the company i work for (an american multinational one) and i was wondering how can it be possible that it is LOWER (3.5%) than the annual CPI increment in Ireland (4.8% - please check here: http://www.cso.ie/releasespublications/documents/prices/current/cpi.pdf ).

That means that in the end, I lost 1.3% of my buying power!!!

I found somewhere in the web that "It is usual to provide for the annual review of basic salary, and that it be at least as much as the rise in the Consumer Price Index." ( http://www.researchcareersireland.com/Page.aspx?SP=67 )

I'm not Irish, but I think this can't be legal in any EU state...any ideas?!?

cheers!

Have you tried raising this with them? The review works both ways ya know

Mr. Presentable · 19-03-2008 3:19pm

Hi. The key word in your quote is "usual". There is no obligation on an employer, unless specified in your contract, to improve your salary in line with inflation or comparable industry or any other standard.

death1234567 · 19-03-2008 3:21pm

nosebleed wrote: »

but I think this can't be legal in any EU state!

What planet are you from? Of course its legal. They can give you whatever pay rsie they like or not give you one at all if they want. Its called business. If you don't like it hand in your notice and get another job.

nosebleed · 19-03-2008 3:26pm

John_Mc wrote: »

Have you tried raising this with them? The review works both ways ya know

not yet, coz I first tried to get some legal advice...i wrote to a couple of associations and now i'm waiting for their response...then i'll see what to do...

TomCruise · 19-03-2008 3:26pm

nosebleed wrote: »

hi everybody!

I've just had my annual salary review from the company i work for (an american multinational one) and i was wondering how can it be possible that it is LOWER (3.5%) than the annual CPI increment in Ireland (4.8% - please check here: http://www.cso.ie/releasespublications/documents/prices/current/cpi.pdf ).

That means that in the end, I lost 1.3% of my buying power!!!

I found somewhere in the web that "It is usual to provide for the annual review of basic salary, and that it be at least as much as the rise in the Consumer Price Index." ( http://www.researchcareersireland.com/Page.aspx?SP=67 )

I'm not Irish, but I think this can't be legal in any EU state...any ideas?!?

cheers!

Focal time at intel again is it?

nosebleed · 19-03-2008 3:30pm

nipplenuts wrote: »

Hi. The key word in your quote is "usual". There is no obligation on an employer, unless specified in your contract, to improve your salary in line with inflation or comparable industry or any other standard.

heya! i know, i'm not an english speaker, but my interpretation of the sentence
"It is usual to provide for the annual review of basic salary, and that it be at least as much as the rise in the Consumer Price Index."
is that it is usual to get an annual review, but if u get it, then it HAS TO BE at least as much as the CPI.

am i completely wrong?

madson · 19-03-2008 3:34pm

your dead right TomCruise, it is that time of year again....

if you are in intel nosebleed you should be grateful quite a few people got 0% this year, avarage for 'sucessful' this year is 1.5% to 3.1%

Mellor · 19-03-2008 3:35pm

The that refers to the usual also

usual that you get one, and [usual] that it is as least as much as the CPI

Nody · 19-03-2008 3:39pm

nosebleed wrote: »

heya! i know, i'm not an english speaker, but my interpretation of the sentence
"It is usual to provide for the annual review of basic salary, and that it be at least as much as the rise in the Consumer Price Index."
is that it is usual to get an annual review, but if u get it, then it HAS TO BE at least as much as the CPI.

am i completely wrong?

Utterly and completly even though many people think that because they work they have a legal right to get a increase at least with inflation and anything below 5 to 10% means the company/boss/HR/the pink elephant hates them.

nosebleed · 19-03-2008 3:40pm

death1234567 wrote: »

What planet are you from? Of course its legal. They can give you whatever pay rsie they like or not give you one at all if they want. Its called business. If you don't like it hand in your notice and get another job.

have u ever heard about employment rights or trade-unions??? we are not in China...

Mr. Presentable · 19-03-2008 3:44pm

nosebleed wrote: »

heya! i know, i'm not an english speaker, but my interpretation of the sentence
"It is usual to provide for the annual review of basic salary, and that it be at least as much as the rise in the Consumer Price Index."
is that it is usual to get an annual review, but if u get it, then it HAS TO BE at least as much as the CPI.

am i completely wrong?

Sadly, yes. The word "usual" here means

It is common practice provide for the annual review of basic salary, and it is common practice that it be at least as much as the rise in the Consumer Price Index.

You could appeal to your salaries dept on the grounds that it is common practice etc, but there's no obligation on their part to follow common practice.

Sangre · 19-03-2008 3:45pm

you are not entitled to a payrise. the employer is under no obligation to give one unless stated in the contrac.

r3nu4l · 19-03-2008 3:46pm

nosebleed wrote: »

heya! i know, i'm not an english speaker, but my interpretation of the sentence
"It is usual to provide for the annual review of basic salary, and that it be at least as much as the rise in the Consumer Price Index."
is that it is usual to get an annual review, but if u get it, then it HAS TO BE at least as much as the CPI.

am i completely wrong?

I think you are very wrong.

It is usual for me to drink beer at the weekends but last weekend I did not. Just because it is usual practice to do something does not mean that it is a legal requirement.

If you work for a Government body like the Civil service then I think that they HAVE to get an increase at least equivalent to inflation. I could be wrong about that.

nosebleed · 19-03-2008 3:47pm

madson wrote: »

if you are in intel nosebleed you should be grateful quite a few people got 0% this year, avarage for 'sucessful' this year is 1.5% to 3.1%

no, i dont work in intel...

blah · 19-03-2008 3:47pm

In a lot of cases people don't have trade unions. And employment rights doesn't mean that you have the right to a pay rise.

I learned early that a company will happily give you little or no pay rise, or even make you redundant, with minimal notice, if it makes good business sense. If you don't like it, you should go somewhere else. You don't owe them anything.

How Strange · 19-03-2008 3:48pm

nosebleed wrote: »

not yet, coz I first tried to get some legal advice...i wrote to a couple of associations and now i'm waiting for their response...then i'll see what to do...

Why on earth would you be seeking legal advice about your pay review? I'd say no matter what the associations tell you if you go back to your manager telling him/her that you sought legal advice etc on the matter you can kiss your career goodbye.

nosebleed Quote:
"It is usual to provide for the annual review of basic salary, and that it be at least as much as the rise in the Consumer Price Index."
is that it is usual to get an annual review, but if u get it, then it HAS TO BE at least as much as the CPI. am i completely wrong?

In a word, YES. A company doesn't have to give any payrise and there is certainly no legal obligation for them to do so. Moreover, they don't have to give a certain %. The norm for large multinationals over the past few years has been 3-6%. 6% being awarded to the outstanding employees, 3% to the bad ones and 3.5% to the fairly average. That is the general measure in my company anyway.

Terrible incremental increases were the norm in the late 80's/early 90's where on top of inflation any increases in the tax rates (which was normal year on year) meant that you came out with less than the year before.

Bottom line, some large multinationals have had pay freezes for the last few years so count yourself lucky that you got anything this year.
If you don't like it then get another job. This time next year your multinational employer may be announcing they are leaving Ireland to set up in India or somewhere.

I think this is rude awakening for all those 20 something workers who entered the job market in boom times. It wasn't always like that and it probably won't be again for a while so its a case of put up and shut up or find a new job.

kayos · 19-03-2008 3:53pm

nosebleed wrote: »

have u ever heard about employment rights or trade-unions??? we are not in China...

Employment rights do not cover a salary review and resulting rase if any coming from that review.

Honestly do you think all these american companies would even dream of locating to Ireland if they had to by law increase pay levels every year? Most of them go on pay freezes often enough meaning you get no increase.

Do you honestly think those on say over 100K a year should get the same % as someone much lower down the pay scale? How about companies take into account the reduced amount of income tax you pay after a budget and say thats your pay rise.

Honestly if you got 3.5% be happy I've seen people go a few years with no increase and when they do eventually get them its below the rate of inflation etc.

dudara · 19-03-2008 5:06pm

Companies do not have to give payrises. If you expect a payrise, then you are unrealistic. (The lack of payrise may be due to poor performance on your part, or prevailing economic conditions amongst other reasons).

If they do give a payrise, it is at their discretion.

If you have concerns that you did not get the payrise that you feel you deserved, then list your arguments for a greater rise and take them to HR. Don't go in pleading "just because....".

helimachoptor · 19-03-2008 5:10pm

dudara wrote: »

If you have concerns that you did not get the payrise that you feel you deserved, then list your arguments for a greater rise and take them to HR. Don't go in pleading "just because....".

Fully agree. Have my review next month but am armed to the teeth with reasons why I should get a payrise!

nosebleed · 19-03-2008 5:52pm

thanks to everyone! at least now i have an idea on how things work here...

Eoin · 19-03-2008 6:34pm

nosebleed wrote: »

I found somewhere in the web that "It is usual to provide for the annual review of basic salary, and that it be at least as much as the rise in the Consumer Price Index." ( http://www.researchcareersireland.com/Page.aspx?SP=67 )

I think that's very poorly worded. Everyone should have an annual review of their salary, but not necessarily a raise. The two are completely different terms.

annual salary review

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