Prorated Raise

weed30April 21, 2007

I am trying to get a grasp on this. My company is changing to a universal date, (April 1), to do all salary increases. If you received an increase within the past 11 months, (I think!), then your raise is prorated.

SO....Say you received a raise at your annual date which was July '06. That is 8 months until the new review/raise date of April 1 '07. If your raise is 4%, does that mean you actually only receive 2.7% until next April?

If you received a 2% raise in July '06, how does that figure in to your actual annual salary for the time period of April '07 to April '08?

Thank you for reporting this comment. Undo
steve_o

Maybe it's because it's the weekend, but this makes my head swim. If you were given a 4% raise in July of '06, how can they retroactively make it smaller? Haven't you been earning it since last summer?

Maybe it's a difference in how it's counted? For instance, if you were making \$25,000 a year, a 4% raise would be either another \$1,000 a year total or another \$83 a month. I could see them giving you the \$83 a month from July until this April; that would come out to be the 4% raise you were given and that they can't really get back, but because you're earning it only for 8 months, that's really \$667 total, not \$1,000 (667/1000 = 8/12). Maybe that's how they're pro-rating.

April 22, 2007 at 9:11PM
Thank you for reporting this comment. Undo
weed30

Steve, my head is swimming too, but my original calculations were correct. It's 2.7% from this month until next review in April '08. They are not touching the original raise from July '06. I'll come back with an official explanation (from HR) that will hopefully make things more clear.

April 23, 2007 at 9:12AM
Thank you for reporting this comment. Undo
clg7067

Yes, this has happened to me a couple of times. One year I got a 0.5% raise because of bad timing.

April 23, 2007 at 9:59AM
Thank you for reporting this comment. Undo

My one job of 23 years (has been part-time for the past 8.5 years), raises aren't given at regular intervals or according to a percentage, but at the owner's whim.

My other job of 8.5 years (which effectively ended April 1 when the business closed, but I'm still there cleaning up the office), I haven't gotten a raise in probably 6 years.

So those who are getting pay raises on a regular/scheduled basis, don't complain, be glad you're getting it at all.

April 23, 2007 at 2:06PM
Thank you for reporting this comment. Undo
nancyinmich

I don't hear a complaint, I hear confusion.

April 23, 2007 at 10:48PM
Thank you for reporting this comment. Undo
quirk

weed, this is what I think they are doing.

If you normally get a 4% annual raise, this is the (rough) equivilant of getting a 1/3% raise per month you work for them. After twelve months, you would normally get 1/3(percent per month) times twelve (months) equals 4 (percent). Instead, since you are going to get a raise after only 8 months, you are getting 1/3 (percent per month) times 8 (months). 1/3 x 8 = 2.7.

April 25, 2007 at 4:23PM
More Discussions
What is the fair ratio?
The living expense is paid between the couple (Husband...
azmom
help!!! advice needed asap for 2nd mortgage
I need to take out \$30,000 in equity for desperately...
gigigirl1
Here's a question for those who pay with cash
It happens occasionally, I'll be in a checkout line...
SnidelyWhiplash
child tax credit, age 17 cutoff
I was just wondering if anyone knew the logic behind...
jiggreen
I'm wondering if most people today hire financial planners...
cmarlin20
Grid Wall-Mount Mailbox - Polished Stainless Steel
Signature Hardware
Stratford Brown Weathered Mantel Chime Clock
\$221.90 | Bellacor
Golden Ochre and Driftwood Brown Polyester Filled 18 x 18 Pillow
\$49.80 | Bellacor
Montana Woodworks Homestead Media Center Lacquered
Beyond Stores
RCS Grills Agape Stainless Single Drawer - Fully Enclosed
\$359.00 | LuxeDecor
WAC Lighting | Pome Quick Connect Pendant Light
\$150.50 | YLighting
Safavieh Indoor/Outdoor Area Rug: Safavieh Rugs Shag Cream/Beige 8 ft. x 10 ft.
Home Depot
Nico Nickel Opal 12 1/2" Plug-In Swing Arm Wall Light
Euro Style Lighting
© 2015 Houzz Inc. Houzz® The new way to design your home™