Percentage based salary increases

A visual reflection on why percentage based salary/wage increases will only ever widen the gap between rich and poor:


Over the twenty years from 1995 to 2025, with 5% yearly salary increments,

• The person who started with a salary of R2000 per month ends up with a salary of about R8600 per month.
• The person who started with a salary of R12000 per month ends up with a salary of about R51000 per month.

So the difference in their salaries went from R10000 in 1995 to about R43000 in 2025.

.