Understand if a Company Has an Obligation to Give a Cost of Living Raise
Inflation rates are currently high, and you might be noticing higher costs at the gas pump or grocery store. However, even if costs are higher, most paychecks are staying the same. This means that cost-of-living is increasing, and people are not paid more to cover these costs.
If you are struggling with increased costs, you can request a cost-of-living pay raise from your employer. This can help offset the effects that inflation has on prices. Employers have no though, which means that requesting a raise on your own could be difficult and unsuccessful.
You don't have to request a cost-of-living raise on your own, though.
Why do companies give cost-of-living raises?
When inflation raises the prices of goods and services, it becomes more expensive to live a normal life, but paychecks don't naturally increase to accompany these increases. In many ways, it can feel like you are taking an overall pay cut if your pay stays the same.
This is why companies grant cost-of-living raises. Employees may suddenly be unable to pay their bills with their old paycheck, and if pay is not raised, they might need to seek other opportunities. Cost-of-living raises help companies retain employees during periods of inflation
However, cost-of-living raises are not mandatory. According to Investopedia, raises based on the rate of inflation were created for Social Security recipients. These changes in Social Security are based on the Consumer Price Index, a report on changes in prices due to inflation published by the U.S. Bureau of Labor Statistics.
What should you include in your cost-of-living pay raise letter?
Because companies are not required to give cost-of-living pay raises, you may have to advocate for yourself to have your salary increased. One way to do that is by requesting a pay raise by letter to your employer. If you write a letter to your employer, consider the following tips:
- Do your research beforehand. This can mean looking at the Consumer Price Index data mentioned above. It can help give evidence for why you need a pay raise.
- Review your company 's policies for pay raises. Following proper procedure and sending your letter to the correct person can help increase your chances.
- Explain your situation in the letter. Particularly, note if you have been at the company for a long time and have not had a pay increase.
- Indicate if you have had increased duties recently. While you may be looking for a pay raise due to the increased cost-of-living, you may deserve a raise based on performance as well.
- Be polite in your request. Because companies are not obligated to give cost-of-living pay raises, you need to make your case as compelling as possible, and being courteous can't hurt.
Why should I request a cost-of-living pay raise?
Inflation can make your paycheck worth less than it used to be, even if the amount on the check remains the same. Cost-of-living continues to increase and is especially an issue with the current inflation rate. Requesting a pay raise is something to strongly consider for a few reasons:
- A raise can help cover some of the increased expenses that you are seeing
- You'll be more likely to stay at your current job with a raise instead of seeking other employment.
- Your past accomplishments may warrant a change in pay.
That being said, requesting a raise can be frustrating and demoralizing. It can feel awkward to advocate for yourself, even if you do deserve a raise. It can also be difficult to know exactly what to say, even if you do follow tips or templates.
You don't have to fight for a cost-of-living raise alone, though. There are solutions to help make the process easier.
What are some convincing arguments to request for a raise?
If you do decide to request a pay raise, what should you say? The rising inflation rates may have been negatively impacting you, but it can be difficult to put this into words. Thankfully, DoNotPay can help you request a raise and has you covered in just five easy steps.
- Enter the name of your company and supervisor as well as how long you have worked at the company.
- Select which industry your job position falls under so we can find the right year-over-year wage growth.
- Enter the salary increase (as a percentage) you would like to ask for. The recommended number is ~6%.
- List your recent goals and accomplishments to make a more convincing argument for your raise.
- Choose whether you would like us to email this request to your manager/supervisor on your behalf. If not, we'll generate the request as a PDF that you can deliver to them yourself.
Why use DoNotPay for your cost-of-living raise request
Requesting a raise on your own can be intimidating and difficult, but DoNotPay can make the process much better because it is:
- Fast: By using DoNotPay, you don't have to spend time researching request letter formats or writing the letter yourself. This can be a time-consuming process on your own.
- Easy : In just 5 straightforward steps, DoNotPay can take care of your cost-of-living raise request.
- Successful: DoNotPay's methods are effective, and we will make the best case for a pay raise for you.
DoNotPay works across all companies with the click of a button
Regardless of what company you work for, you can use DoNotPay to request a raise to help with the rise of cost-of-living. DoNotPay is not restricted to only helping employees of some companies.
What else can DoNotPay do?
DoNotPay is not only a tool for helping you request a pay raise. There is much more that DoNotPay can help you with once your request has been submitted. Some other things that DoNotPay does include:
- Sue in small claims cases
- Request sick leave
- Help with bills
- Insurance claims
- Fight workplace discrimination