Hi All,
I will complete 2 years in this month working in a compay. I havn't got any salary increase in the last two years. In my contract there is also no point regarding increase of salary. What is the system here for salary increase. I think one should get his salary increase every year due to inflation. I want to ask my boss to increase my salary. What do you think, is it a rigt way in germany?

Could anyone please tell me the exact inflation rate of 2003 and 2004 in germany?

Regards-
ASM

Generally speaking, salary increase must normally be offered after

* a performance evaluation, in which you and your functional manager have a meeting and your manager shows you the sight of company about your performance. If it is beyond their expectations, company can offer a salary increase.

* a general decision by the company's financial department. In this case, almost everybody gets a similar salary increase.

Your expectation about salary increase with respect to inflation is correct, but company's financial policy is decisive. According to European Union fiscal rules, a member country has an inflation no bigger than 3% AFAIK. So don't expect a bigger increase, if there should be any. If you have very good performance, then it's likely that you can get an increase.

Only you can know whether you can get any, because you are the one who is working in the company, and the one who knows the financial status of the company. If company has decided to make a cost savings everywhere, don't expect an exceptional increase special to you, if you have a mean performance.

Well this is an interesting topic. I dont know which company you are working for but any decent company in Germany should have a yearly Staff dialog which is called 'Jahres Mitarbeiter Gespräch'.This is done in order to establish a better relationship and understanding between you and your boss. You can express you own views frankly and in turn your boss would also do the same. Based on his feedback the board of directors or the person above your boss would decide upon a salary raise.But your boss has to strongly recommend you for a salary hike.

Nevertheless this has to be initiated by you, as this is your career and finally you are going to be in advantage in case you get a salary hike.
On the other hand, if your performance is not good your boss should tell you honestly about this and should also propose some changes in your working pattern or give you hints on improving your competence.

If this is not happening, its a clear sign that your company is just intended in using you as a low cost worker and my advice is to look for some other options.I know companies who just give a negative feedback for the heck of giving it so that they can dictate terms on you and safeguard their financial interests by not giving you a hike.

So go and speak frankly to your boss, be open minded to perform some self critiscm, evaluate yourself without any discreation and discuss your pros and cons. If he is not showing interest, then the only question that should be in your mind is 'WHY THE HELL AM I STILL IN THIS COMPANY?', look for something else outside and when the time comes, say a diplomatic 'TSCHUSS' to your boss and company.