Are salaries automatically indexed in the US when inflation occurs?

Discussion in 'Off-Topic Discussions' started by TeacherBelgium, Dec 20, 2022.

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  1. TeacherBelgium

    TeacherBelgium Well-Known Member

    Belgium is at around 11.57% of inflation currently.
    In January I will get 11.57% more salary per annum.
    This is not a raise though, it's purely meant to match the purchasing power consumers had prior to the recession.

    Depending on which labor union you belong to, you get it immediately added to your salary every month, or once a year if you are in a larger labor union.

    Does automatic indexation of salaries also happen in the private sector in the US?
    Or only in the public sector (gov)?
     
  2. Rich Douglas

    Rich Douglas Well-Known Member

    Generally, no. Some organizations might have cost of living increases as a norm, or might have them built into collective bargaining agreements, but they tend not to keep up during inflationary times. (Same with the public sector.)

    Generally speaking, American workers are on their own to fight the effects of inflation.
     
  3. SteveFoerster

    SteveFoerster Resident Gadfly Staff Member

    No, but it's typical for salaried employers to get an annual "cost of living adjustment" that reflects CPI.
     
  4. Lerner

    Lerner Well-Known Member

    From what I experienced and my colleagues, last years adjustment is partial 2% to 5% even if inflation is at 7% or 8%. Still something and better then not getting an adjustment.

    Also I don't think the calculation of inflation is reflating the real increase in the cost of living.
    Elderly on SS pensions and people with low income feel the pain when essential produce like eggs, bread, poultry and other meet, etc all doubled and some tripled in cost.
    Rent in many big cities also rises much higher then the inflation. Preowned vehicles rise in price from what I see like 30%.
    Its like your life savings buying power was slashed in half.
     
  5. mintaru

    mintaru Active Member

    LOL, you have no idea how lucky you are. The US is not the only county were automatic indexation of salaries does not happen. The same is true for Belgium's eastern neighbor Germany and every EU country east of it as well.
     
  6. mintaru

    mintaru Active Member

    The US is a country, of course. stupid typo :rolleyes:
     
  7. Vicki

    Vicki Well-Known Member

    I have never heard of such a thing at all. I also have never been part of a union or worked a government job. Not sure if it happens there.
     
  8. TeacherBelgium

    TeacherBelgium Well-Known Member

    Are you in America? Does it depend from state to state?
     
  9. TeacherBelgium

    TeacherBelgium Well-Known Member

    I had no idea Germany didn't partake in automatic indexation. I thought it applied everywhere in Europe.
     
  10. Johann

    Johann Well-Known Member

    You have four law degrees. I figured you'd know every law in Europe by now.
     
    Maniac Craniac likes this.
  11. mintaru

    mintaru Active Member

    To be honest, that doesn't surprise me at all. I have noticed that most Europeans do not realize how big the differences between different EU countries are. The differences between Belgium and Germany are still fairly insignificant.

    The differences are really big when you compare Northern and Southern Europe or Western and Eastern European EU countries. In the vast majority of cases, this is because people just assume certain things are the same across the EU without ever checking.
     
  12. Vicki

    Vicki Well-Known Member


    Yes, I am in the US. I doubt it varies much from state to state. Employers often decide what they want to pay. Some offer a “cost of living raise” but that is usually like 2% or something like that. But that is not a guarantee.
     

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