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An automatic and regular increase in pay, often referred to as a cost-of-living adjustment (COLA) or merit raise, is a mechanism used by employers to ensure that employee salaries keep pace with inflation or reflect performance improvements. These increases can help maintain employee morale and retention by acknowledging their contributions and the rising costs of living. Typically, such adjustments occur annually and are predetermined based on company policy or collective bargaining agreements.

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1mo ago

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