My husband has been working with a company for the past 5 years. He has had two big promotions that should have increased his salary considerably according to his market value rate. When he asked his manager if he could be paid market value rate, the manager responds that the company cannot give more than 10% pay increases per year. Is this normal? Also, if they hire outside the company that person makes market rate while my husband has been working with the company for 5 years and still does not make market rate. (and this person has less experience than my husband does. My husband also trained this new employee) is there anything he can do?

If he is being paid less because of his race, his religion, or other protected reason.

But short of going and finding another job, there is nothing he can do unless he has a specific contract.

He can ask his manager to let him have a meeting with the managers boss but often those can go bad also.

Remember "market value" is only good when you are ON THE MARKET" so perhaps he will have to go on the market find another firm to move to that will pay a higher rate

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Originally Posted by berryp68

is there anything he can do?

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Hello berry:

The only thing your husband can do is negotiate the best compensation package he can. If he doesn't like the outcome, he can quit.

The 10% number is company POLICY. It is NOT law. They certainly COULD give him any size raise they wanted to.

What any other employee makes, whether they are senior, or junior to your husband, has NOTHING whatsoever to do with what your husband makes. The only exception to the above, as the Padre mentioned, would be if your husbands race, age, gender, sexual preference, or religion was a factor in the decision.

excon

And I will say that a 10 percent increase in pay right is almost unhead of almost every company I know of has not given any raises at all in almost 3 years.

I know over 10 companies that have cut pay up to 25 percent also.