Friday, May 27, 2011

Looking forward to my extra £100

. . . for all staff in UK higher education. Details here.

1 comment:

Richard Baron said...

Don't blow the whole £100 before you've got it, Thom. It will only be £68 or £58 after income tax and national insurance. (Higher marginal tax rates apply when income is between £100,000 and £114,950, or over £150,000, but that may be of purely academic interest.)

The article does raise an interesting question about whether increments count as pay rises. If the increments are discretionary, I would say they do. They represent more money, to which you were not contractually entitled in advance of their being awarded. If they are automatic, the question strikes me as more difficult. On the one hand, you could say that you signed a contract of employment that effectively incorporated pay rates for a number of subsequent years, on the basis that those rates represented reasonable amounts given the cost of living and the job market at the time. Then you would expect additional compensation for changes in the cost of living or in the state of the job market. On that basis, you would not count the increments as pay rises. On the other hand, you have, at any time, the option of quitting your job if the rewards available elsewhere (perhaps in a completely different profession) are sufficient inducement. Your entitlement to the increments is therefore conditional on your choosing to stay. That makes your entitlement to the increments not quite so straightforward. It is not that your entitlement is contingent on fulfilling your contractual obligations, something that would strengthen a claim not to count the increments as pay rises. Rather, your entitlement is contingent on your choosing one way to fulfil your obligations rather than another, for example, to remain in post for ten years rather than to leave after four years.