[1000100_1000101]

Typically "Cost Of Living" increases target roughly inflation. They don't really keep up though, due to taxes.

If you've got a decent tech job in Canada your marginal tax rate will be near 50%. Any new income is taxed at that rate, so that 3% COL raise, is really a 1.5% raise in your purchasing power, which typically makes you worse off.

Until you're at a very comfortable salary, you're better off job hopping to boost your salary. I'm pretty sure all the financial people are well aware they're eroding their employees salaries over time, and are hoping you are not aware.

[Retric]

Tax brackets also shift through time, though less frequently. So if you only get COL increases for 20 years you’re going to be reasonably close to the same after tax income barring significant changes to the tax code.

In the US the bottom tax brackets where 10% under 2020 $19,750 then 12% next bucket, in 2025 it’s 10% under $23,850 then 12% next bracket. https://taxfoundation.org/data/all/federal/historical-income...

[skuzye]

And here I am in the UK, where the brackets have been frozen until 2028 (if they don't invent some reason to freeze further).

[Retric]

Freezing tax brackets is a somewhat stealthy way to shift the tax burden to lower income households as it’s less obviously a tax increase.