How is it two years? For your claim to be true the person would have had to make 40k also for 2010-11. Here is an example for you.<quoted text>
What about FY 12 to FY 13? You claim no raises for only a year. If you made $40,000 from 2011-12 and $40,000 in 2012-2013, that's two years. Boy I hope you don't keep your company's books. Wont go back on that statement, will ya? Yep, cause you were wrong with your statement. Its ok to admit a mistake. Really, it is.
2011-12 40k (raise in salary over previous year)
You can see the person actually received a raise in salary for the 2011-12 year over the previous years 2010-11 salary. That leaves you with only one year of no increase in salary.
For your statement to be true:
2010-11 40k (raise in salary over previous year)
2011-12 40k no raise
2012-13 40k no raise.
That is three years at the same salary.... but only two years with no raise in salary.
As for lump sum payments. They have been around in the private sector for many years. They are used to keep the base salary scale from escalating. Some benefits are tied to the base salary and it keeps the costs lower. It also as you correctly stated stops the compounding effect.
I only have one big question on this subject of salary. Many started out posting no raises in salary for 4 years straight and now it seems to be down to one year. Which is it? If a salary is increased through a percentage raise or lump sum which makes the salary greater than the previous year thats an increase in salary ( commonly called a raise in annual salary). If the lump sum goes away thats a decrease in salary unless it is offset by a percentage increase. If the total salary stays the same year to year we can all agree thats a freeze (or no raise in salary). So who has been posting the correct information based on the salary data?