A pay increase may lose its luster for some workers once they factor in inflation. It’s a consideration TikTok user Kyyah Abdul (@kyyahabdul) is warning viewers about amid a time of rapid inflation on a monthly basis.
“When a company gives you a 3% salary increase and they’re like ‘congratulations,’ Congratulating me for what?” Abdul says in a viral TikTok video. “Inflation is 9%, which means I’m actually taking a 6% cut.”
Around June 2022, the consumer price index in the U.S.—an average of consumer goods and services purchased by households—reached 9%, according to CNBC. Although the CPI is now lower, hovering around 6.4%, the pace “remains more than three times as fast as was typical before the pandemic,” the New York Times reported.
@kyyahabdul Replying to @guida.guida I made a longer form video on the topic! #salarytips #salaryraise #promotions ♬ original sound – Kyyah Abdul
In the U.S., salaries don’t necessarily keep up with the pace of inflation as wage growth has been consistent with a 4.5% inflation rate, according to CNBC. Organizations focus more on the labor market rather than the cost of living when working to craft competitive salaries and wages.
So in some instances, people could be making more money but buying less with it.
Commenters on Abdul’s video seemed to appreciate her breakdown of information.
“As a manager who gives out these low percentages…even if I’m rewarding a top performer with a higher number I never say congratulations,” one commenter said.
Abdul also noted responded to a commenter who asked why her concern wasn’t more directed at the government and how it works to control inflation.
“[People] are upset with the [government] but I can’t do anything about that,” Abdul said. “I CAN do something about the job I have. I worry about what I can control.”
The Daily Dot reached out to Abdul via TikTok comment and Instagram direct message.
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Source: https://www.dailydot.com/irl/pay-increase-amid-inflation/
