There are many reasons why an employer would give their employees a salary increase. It can be to boost the morale in the company, reward them for an excellent performance at work, or it can be simply to encourage them to continue their good work.
Whatever their reasons are, raises are undoubtedly one of the things that employees look forward to at work. However, when getting a raise, it’s not simply enough that we get a raise – we should also take into account some things to make sure they’re actual bonuses and not a pay cut.
The Ordinary American’s Average Wage
Before we get into the concept of salary increases, we first need to know what the average salary of an ordinary US citizen is. According to data by the Bureau of Labor Statistics, the median salary for American workers in the 4th quarter of 2019 is around $936 weekly or roughly $48,672 in a year.
And this was set to increase earlier this year (2020), with approximately 6.8 million US citizens receiving a higher salary, thanks to the National Employment Law Project.
This may seem like great news, especially for minimum wage earners whose income at the moment is around $7.25 hourly in most states, but this fails to take into account that it’s been 10 years since the US Congress established the current amount for minimum wage.
Inflation and Pay Raises
With that said, even with the recent salary increase, it seems like wages in the US have barely moved in the last few decades.
Therefore, the reason why everyone is struggling in this economy, and they are struggling,isn’t that there haven’t been any positive economic changes but rather that companies are failing to take into account the current rate of inflation when it comes to the wages of their employees.
How To Make Sure You’re Getting a Raise, Not a Pay Cut
So, how do you make sure you’re getting a raise and not a pay cut? Well, it’s simple. Make sure they’re taking into account the current inflation rate (approximately around 2% as of now) when they give you your bonus because any less and you’re actually getting a pay cut.
This may seem more complicated than originally thought but thankfully there are online calculators that can help you determine how much exactly should your income be after your raise and when the inflation rate has been included.
If you’re performing well at work and possibly even going above and beyond what’s expected of you, then your employer might be more than happy to give you a pay raise. However, before you agree to anything, make sure that the raise you’re getting is keeping up with the country’s inflation rate as many fail to do so.
After all, you deserve a bonus for all your hard work, not a salary reduction.