Polls / March 5, 2013

When did you last get a pay rise?

Almost half of the respondents to the latest eZonomics online poll have not had a pay rise for at least two years.

In it comes (and out it goes)
A person’s job – or more correctly their skills, experience and ability to pull in a regular income – could well be one of their biggest assets. Of course, pay is a large part of this. Pay rises are important for many reasons from a personal finance perspective, with inflation (or the general rise in prices that eats away at the value of money) key. As detailed in an earlier eZonomics poll that asked if respondents would be happy with a 2% pay rise, it can pay to regularly check whether income is at least keeping pace with inflation. If not, it might mean adjustments to household budgets are needed to avoid debt or financial trouble.
A strange quirk is that money illusion - or our tendency to think of the face value of money rather than how much the money can buy – means that, in general, people think of a 2% cut to their wages as unfair. But they tend to think of a 2% rise as fair, even when inflation is running at 4%. In reality, those two scenarios produce a very similar financial outcome.

I am a tall left-hander
In a blogpost, economist and writer Chris Dillow highlights a bizarre range of characteristics that research suggests may influence pay. Dillow tells how height, appearance and even if you’re left-or-right-handed could make a difference.
A frustration is that we can do little to change many of these things.

It could be worse
Those upset about not getting a pay rise might take comfort in research that finds simply having a job is helpful for happiness. Specifically, it finds unemployment reduces happiness by much more than just the loss of a wage. This knowledge might help take the edge off when trimming the budget to take inflation into account.

BudgetJobsHappinessInflation

eZonomics team
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Have your say

Would you tell your partner about any money worries?