Our Strategic Pay Senior Consultant, Christine Whelan examines the debate around salary increases being based on CPI and why this may not be the best idea.

Let’s forget for a moment the fact that CPI doesn’t always move positively and consistently upwards – over the last 5 years it’s ranged between 0.5% and 2.5%, while the remuneration market movement has remained at a reasonably steady 2 – 3%. Remuneration market movements, since they inevitably reflect employers’ ability to pay, already take into account CPI, while not being driven solely by it.