ByWhat to Do When Your Raise Is Not Enough to Cover Your Cost of Living
The rises every year due to inflation. It's only right that your wages do as well. The Consumer Price Index (a metric of the periodical average variation in the prices paid by consumers for a basket of consumer goods) has risen by 4.2% in the past year alone. Because the CPI is a basic measure of cost-of-living, this implies that your salary is worth 4.2 percent less than it was last year.
Getting your fair share of the pie is essential to living comfortably. That's why DoNotPay is ready to aid you in requesting a cost-of-living raise, often known as an inflation-based pay raise. To construct a compelling case for why you deserve the increase, our product considers the national average CPI as well as the typical year-over-year wage expansion in your industry.
Why Do Companies Give Cost of Living Raises?
The primary reason for a wages in line with living costs. Employees require more money to pay for goods as the cost of basic items rises, and employees that receive regular raises are more likely to stay with a company, thus reducing the turnover rates. Employees aren't driven to hunt for higher-paying work if the wages you pay keep up with their living expenditures. You might also be able to recruit new hires by highlighting your COLA raises as an additional workplace benefit.
Some employers are obligated to provide cost-of-living wage adjustments. Employees in the federal government are typically entitled to cost-of-living increases. Private employers are not expressly required to provide cost-of-living raises. It is a matter of choice.
What Should You Place in Your Salary Increase Letter?
Employers should, in principle, be able to tell when exactly to give their employees a raise, and the employees will then no longer need to request a raise in pay. Regrettably, in the real world, things aren't as straightforward. So, if you think you're not getting paid enough for your labor or commensurate with inflation, it's time to write a salary raise letter. This letter will formalize your application and improve your chances of receiving your desired outcome. Make sure to include the following elements in the document:
| The Letter’s Overall Goal | Mention how much you like working for the company in the first paragraph of your letter. It's also a good idea to include your job title and length of service with the organization. Then describe the letter's overall goal, which is to request a raise in your wages. |
| The Motivation for Your Request | After you've stated your request, it's time to explain why you're asking for it. The following are the most prevalent grounds for requesting a raise in pay:
|
| The Rationale Behind Your Request | Describe why you believe you are deserving of a raise. Make a list of all your successes if you've taken on new tasks, for example. You can utilize bullet points, emphasize important information, and incorporate some statistics when appropriate. |
| The Amount Requested | Indicate the amount you're looking for. When writing this section down, be careful not to appear overly demanding. |
| A Statement About Negotiation | Showing that you're ready to negotiate is another technique to soften your request. It can be beneficial if your employer sees that you're willing to reach a compromise if they can't afford the amount you initially offered. |
How Does COVID-19 Affect Our Cost-Of-Living?
Following the COVID-19 pandemic, demand spikes and supply chain challenges attributed to travel restrictions led to increased volatility in product prices. The pandemic's faltering economy hurt world commerce, resulting in spikes in multiple basic commodities, significantly raising the cost of living.
How Can I Calculate Cost-Of-Living Raises?
A pay rise based on the cost of living is not arbitrary. The increase is calculated using normalized inflation figures. You'll most likely use national or regional figures to calculate the rise. Employers frequently use the Consumer Price Index to calculate the COLA. The index tracks how much various items have changed in price over time. The Consumer Price Index (CPI) depicts nationwide trends and includes information for various geographic locations. For instance, assume that the cost of living has increased by 1.5 percent in the last year. Your salary must then be adjusted upwards in the same 1.5% rate.
How to Submit an Inflation Pay Raise Request Using DoNotPay:
If you want to submit an inflation pay rise request but don't know where to start, DoNotPay has you covered in 5 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.
What Else Can DoNotPay Do?
Solving this problem is just one of many things DoNotPay can help you with.
Here are just a few more services that DoNotPay has to offer.
- Fight Workplace discrimination.
- Request sick Leave.
- File insurance claims.
- Pay bills online.
- Send Demand Letters To people in small claims court.
Our service reach is highly expansive. Contact us today and let us handle issues.