Percentage Pay Rises explained

Members have queried why we get a percentage increase rather than a flat rate as it’s thought that higher earners get higher wage increases than lower earners. 

Rob Birch, Branch Secretary of Staffordshire Police, has explained it for us all.

Unfortunately, yes the gap does increase between the lower and higher pay grades each time there is a percentage pay increase.

Using a figure between two example wages, for example between a wage of £20,000 as compared to £40,000 there is the £20,000 difference. After the pay rise the gap £20,000 increases to  £20,840 and the £40,000 increased to £41,680, so the gap has increased by £840. 

If the following year’s pay rise was the same amount then it increases the gap further.

What does the Trade Union Side do to combat this?

Every few years Police Staff do have a flat set amount of money as an increase instead of a percentage.  This was the case a couple of years ago.  This then tends to decrease the gap between the top and bottom and resets the balance a little.

The other option that has been considered, but is rarely used in pay rises,  is higher percentages for the lower earners and lower percentages for the higher earners. The problem with this is it becomes disruptive to the pay scale structures.