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?

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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.

    Bookmark   April 22, 2007 at 9:11PM
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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.

    Bookmark   April 23, 2007 at 9:12AM
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Yes, this has happened to me a couple of times. One year I got a 0.5% raise because of bad timing.

    Bookmark   April 23, 2007 at 9:59AM
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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.

    Bookmark   April 23, 2007 at 2:06PM
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I don't hear a complaint, I hear confusion.

    Bookmark   April 23, 2007 at 10:48PM
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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.

    Bookmark   April 25, 2007 at 4:23PM
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