No employee would be receiving more than a 2% raise due to 'budget constraints' and 'economic uncertainty.'

When a company has had a lucrative run, employees must be given their due raises, because it is their effort that has yielded fruit. However, when a company announced its record profits, it immediately informed its employees that there was "no budget" for raises this year. Expressing their frustration over the ordeal, an employee (u/Amazing_Lime124) on Reddit narrated the relatable situation on December 9, and the post has gained over 17,000 upvotes so far.

u/Amazing_Lime124 had their quarterly meeting where their CEO was "giddy" about the company exceeding revenue targets by 40%, making it their most profitable year ever. "Lots of congratulations all around for the 'amazing team effort,'" the author wrote. While the employees were eagerly waiting for an update about their raise, the author's manager sent out an email in less than two hours stating that, while annual reviews are approaching, they have been instructed that no employee would be receiving more than a 2% raise due to "budget constraints" and "economic uncertainty." "That doesn't even cover inflation," the author lamented.

Meanwhile, the employee found that the Vice President of the company had purchased a new car, a Tesla. "But sure, there's no money for the people actually doing the work," they wrote. The employee has been working at the same company for 4 years; however, he hasn't made any substantial growth in income since. "My rent went up 15 percent this year alone. But hey at least the shareholders are happy right?" they wrote. "The disconnect is insane. They really stood up there bragging about record profits and expected us to just smile and accept poverty wages. I'm so done pretending to be grateful for scraps."
Company just announced record profits then told us there's no budget for raises this year
byu/Amazing_Lime124 inantiwork
A 2018 study published in the International Academic Journal of Organizational Behavior and Human Resource Management noted that lower or unfair compensation is associated with decreased motivation and reduced job satisfaction. By applying the Herzberg and Kitchener model to measure employees' motivation, the study found that compensation can help increase motivation. In a recent 2025 survey by KickResume, researchers pulled in 2000 respondents from around the world. Among them, only 47% of U.S. workers reported receiving raises in the last year, while 27% reported that their last raise occurred at least a year or two ago. Despite gaining profits, not offering raises to employees whose efforts paved the way for the company's growth is an unjust behavior from the high authorities.


Soon after the post gained traction, many users shared their thoughts. u/Sure_Acanthaceae_348 wrote, "I hope you can find a new job soon, but in the meantime, make sure you act your wage." u/edwkey commented, "The VP gets a Tesla but you can't get a raise that covers inflation. I'd be forwarding that quarterly report to every recruiter in town. Companies like this only learn when people start walking out." u/slade797 shared, "Company I work for is on track to clear $100,000,000 this year. No raises expected or mentioned, and no holiday bonuses for us peasants."
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