Thursday, January 6, 2011

Merit Increases

From Dictionary.com

Merit:
–noun
1. claim to respect and praise; excellence; worth.
2. something that deserves or justifies a reward or commendation; a commendable quality, act, etc

It's that time of year again at work for review and merit increase. It got me thinking of my salary and future potential earnings. Since I didn't win mega millions Tuesday night I plan on continuing to work for many years. I have been working full time for over 17 years. In that time I have had 4 promotions. With those promotions I had big increases in salary 10-12% or more. Typical merit increases run in the 3-5% ranges and over the last few years they have been in the 2-3% range. I took my current salary and assumed a 3% increase over the remaining years I expect to work calculating the increase each year and adding it to my base.



I was surprised to see the salary I would be earning in the years to come. Hopefully there will be a few promotions along the way, but I did not add any in. If you asked me if that would be enough 6-8 months ago. I would have told you no way. Now being on track to paying off my debt in the next 2-3 years, my salary seem much more manageable / livable.


Could you survive for the remainder of your career on a 2-3% yearly increase?

5 comments:

  1. Wow. 2-3% is really generous as a salary increase every year. not many companies do that. In the 3 years I worked for a company, I got a 2% raise.

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  2. I thought the 2-3% just covered cost of living. Guess grass isn't always greener.

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  3. No way in hell. Not the way that my job works me like I live there. I merit a better increase.

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  4. We live on Social Security and military retirement. Neither of which got a cost of living increase the last 2 years. Our other income is seasonal, and decreasing, as it depends upon regular people being willing to pay to see us. Not when they are losing homes and jobs...

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