In your answer to this question you said, “A semiannual raise of $300 is an annual increase of $600, and if you have two such increases per year your annualized salary hike is $1,200.” Seems to me that if you have a SEMI-annual increase of $300 that would mean your ANNUAL pay hike would be $600 ($300 X 2). I know I’ll likely be pilloried for a fool for asking this but; how do you figure on getting 4 raises in a year via two semi-annual bumps of $300 each?
A curious Canadian
Welcome to the SDMB, ToxicRespite.
Link to the article:
What’s better, a $1,000 raise each year, or a $300 raise every six months?
If I may:
(Disclaimer: I’m not a HR Guru. I’m a PeopleSoft Guru, and I support a HR group.)
Some companies quote pay at various time intervals; I’ve seen hourly, weekly, biweekly, semi-monthly, monthly, and yearly. Daily, bimonthly, and semi-annually are also entirely possible.
The trick to the question as it was answered is that, for the question to work out how it was answered, you must presume that the employee is being paid semi-annually and that the salary increase is expressed in dollars per pay period. Say Bob makes $20800 per year, or $10 per hour. He could be expressed as making $10400 semi-anually.
ACK! Sorry- premature posting.
Anyway, if he took the $300/six month increase (each six months), his pay for each period would be:
10,400 - 1st 6 months
10,700 - 2nd 6 months
11,000 - 3rd 6 months
11,300 -4th 6 months
If he took the $1,000 / year pay raise, his pay for each period would be:
20800 - 1st year
21800 - 2nd year
If you add up the 6 month rates for each year, then you get:
21,100 - 1st year
22,300 - 2nd year
Meaning, on your first year, you’d make $300 more, and on the second year $500 more if you took the six month raises.
Of course, most of the time, employeers quote raises either per hour or per year.
(To get a raise to behave that year, we’d probably describe it as a $600 pay raise, followed by another $600 pay raise in another six months, and so on.)
This is based on Marilyn’s unique interpretation. Since the raise is applied to the semiannual income, it is equivalent to twice that amount against the yearly income
That after the first raise you would be earning $5,300 every six months or a $10,600 annual salary.