With the cost of living rising, should you be asking for a pay rise?
Inflation, the rate at which prices are rising, is on course to rise above 7% this year and average close to 6% in 2022 according to the BBC.

This means prices are expected to climb faster than pay, putting the biggest squeeze on household finances in decades, with workers set to experience the biggest hit to their take-home income since 1990.

This has sparked a widespread debate on pay rises. Boss of the Bank of England, who earns more than half a million a year, Andrew Bailey, told the BBC wage rises needed to be moderate with firms showing "restraint" in pay talks. When asked whether the Bank was asking workers not to demand big pay rises, Mr Bailey said: "Broadly, yes."

As has been the case since March 2021, salaries awarded to new permanent joiners increased again in January 2022, but with the cost of living set to accelerate rapidly, it is the size of the rise that matters.

In response to the comments from Andrew Bailey, the GMB union branded the comments a "sick joke", while the TUC said calls for pay restraint were "ill-founded". "Telling the hard-working people who carried this country through the pandemic they don't deserve a pay rise is outrageous. It's a sick joke," said Gary Smith, GMB's general secretary.

So, should you be seeking a higher salary? Well context of the industry you work in is an important aspect to consider.

The latest report from KPMG and Recruitment & Employment Confederation tells us that IT and computing is the fastest growing sector in demand for permanent workers at the start of 2022. With a wide range of skills within the industry in short supply, candidates have some power in the market when talking salaries with current employers, or when negotiating for a new role.

A mix of high inflation and in-demand skills leaves candidates in a good position to negotiate a pay rise in the coming months.

It’s not all about basic salary either. The Guardian have offered some good advice in taking advantage of as many salary sacrifice schemes as possible, as this will help to counter National Insurance increases.

Interested? Find all of our current vacancies on our website. You can also find out about the latest jobs in IT in the jobs area of our website.

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