Associate
- Joined
- 10 Jul 2006
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If I was earning 50k in 2017, is there any website which will tell me what salary would equate to the same "spending power" taking into account what UK inflation has been?
Job pay with inflation taken into account.
- Thread starter Cheetah Designs
- Start date
Soldato
Pay review time? 
Associate
about same base salary, worked long hours and nearly doubled it - retired 2019
If you use an RPI based calculator the result will be significantly higher than the BoE one, which uses CPI. Not sure of every difference between them but I believe CPI doesn't include cost of housing (or maybe values it differently, unsure).
£50k from January 2017 in todays money would be ~£67500 if calculated using RPI:
https://www.hl.co.uk/tools/calculators/inflation-calculator
If you're using it to angle for a pay-rise I know which I'd go in with
£50k from January 2017 in todays money would be ~£67500 if calculated using RPI:
https://www.hl.co.uk/tools/calculators/inflation-calculator
If you're using it to angle for a pay-rise I know which I'd go in with
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Soldato
Always take the highest number when it suits!
Can someone explain why the inflation rate is linked to pay increases in the UK? In the USA, I've always been told that you're paid how much you cost to replace. If the cost of labor is not increasing at the same rate as inflation, why would the company give you more money just because inflation has increased?
Soldato
It's not and it's rare that all companies will ever pay you an increase inline with inflation. Depends on the company but it's not the norm for it always to be the case. This is why if you don't get bigger % jumps each couple of years, in reality you're earning less etc.
Inflation affects your real terms pay...so it's in the employees interest to see above-inflation pay rises, otherwise you're getting an effective paycut.
It's rare that anyone gets an inflation matching rise (although my company did do it, for everyone, this year). The reason you're seeing all the strike action about below inflation rises in the media is that much of the public service has had below inflation payrises for a decade, constantly having their standard of living eroded, and the jump in inflation has tipped them over the point where they'll put up with it.
Soldato
Pay increases should exceed inflation in most cases.
Soldato
Should. Don't in reality.
A factor I think is often overlooked is that a 'real term paycut' may not actually be unwarranted, in cases where the value an employee is adding is diminishing for whatever reason. It could be they are less effective than they used to be, it could be that the role they perform is of reduced importance, etc.
Employment is a bit of a strange beast in this regard, just because a service is worth £x/year today doesn't mean the same service should be worth £x+inflation/year in 10 years time, usually what happens is it gets superseded by a better service or the price doesn't keep up with an inflation (I accept that in some cases employees improve over time and hence are 'superseding the old service they used to provide').
Employment is a bit of a strange beast in this regard, just because a service is worth £x/year today doesn't mean the same service should be worth £x+inflation/year in 10 years time, usually what happens is it gets superseded by a better service or the price doesn't keep up with an inflation (I accept that in some cases employees improve over time and hence are 'superseding the old service they used to provide').