What's considered a standard yearly cost-of-living increase?
Is 3% still considered standard, or have most recent cost-of-living increases reflected a higher annual percentage rate?
- Eclectic_NLv 41 decade agoFavorite Answer
(From economics class) Wage increases are generally based on the CPI (consumer price index), and tend to be quickly reflected in inflation, which can lead to a cost-of-living/hyper-inflationary spiral. The government (at least in Europe and Canada) tries to keep inflation around 2% per year (by adjusting the bank rate) and it usually stays between 1% and 3% so that would seem like a reasonable cost-of-living increase rate.
Personally, as a member of a women's union I receive no cost-of-living increases per se; in fact my salary only seems to go up at all when we strike.Source(s): http://www.valuationresources.com/EconomicData/Cos... http://en.wikipedia.org/wiki/Inflation http://220.127.116.11/search?q=cache:-30UivzPvNsJ:w...
- Anonymous1 decade ago
The COLA calculation is normally based on the annual rate of inflation and the actual calculation varies by employer/union.
- RammohanLv 41 decade ago
It actually depends on the country. A 2% increase is fine in a developed country. upto 5% is Ok in a developing country.
- How do you think about the answers? You can sign in to vote the answer.
- 1 decade ago
4% this year.
The cost of petrolium has risen beyond that among many other items. The average cost of a home has risen beyond that as well.
Good luck getting that from Most employers.
- chazzerLv 51 decade ago
2% or 3%...
- 1 decade ago
With my boss it's zero