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pay increases

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woolleysheep | 15:33 Tue 17th Jun 2008 | Personal Finance
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is it not time we changed the method of percentage pay increases as the higher paid get most and the lower paid less making the wage gap more each year.My suggestion would be a part percentage and part fixed sum as the differentials would be maintained but would give the lower paid a bigger increase.
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Wouldn't work I'm afraid. Employers won't want to pay more than they need to but where skills are in short supply they will be prepared to pay more. Doctors and accountants will always have to be paid more than teachers who in turn earn more than bus drivers and cleaners. Successful accountants, IT specialists, solicitors etc can demand more or leave and find someone who will pay more.
not the case

lower paid workers will pay less % tax on the money than higher paid

so the 'gap' in net ratio terms is less each year
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needy and gready comes to mind! why do we have automatic pay rises is it the dog chasing its own tail

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