Friday, August 31, 2007

Not 2.5%: an update and clarification

Just to clarify how 1.5% + 1% is not actually 2.5%...
Take a salary of 100.
Increase it by 1.5% for 6 months, salary is now 101.5, and the aggregate salary for 6 months is 6 x 100 x 101.5% = 609
Then increase salary by 1%, (new salary of 102.515) and the aggregate salary for the 6 months is 6 x 101.5 x 101% = 615.09.
Therefore over 12 months you have now earned 1224.09 instead of the uninflated 1200. This is a 2.0% increase. Not 2.5%!
Now some of the staged salary increases have occurred after 8 or 9 months. These would be real increases of 1.9% and 1.8% respectively. And that's how Frown is treating our nurses!

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