Money & WorkFact

A 3% raise can be a pay cut.

The nominal wage is the number on your payslip; the real wage is what it buys. If you get a 3% raise while prices rise 5%, your real wage falls by about 2%. You work just as much but can afford less. That's why unions and employers argue mainly about the inflation rate in every wage round.

Useful: Compare every pay rise with the current inflation rate before celebrating.

Source: de.wikipedia.org

ArbeitGehaltInflation

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