lump sum increase

Definition

A one-time payment rather than a permanent salary increase, letting companies reward employees without committing to higher ongoing costs. It's like getting a bonus disguised as a raise—exciting today, forgotten tomorrow.

Example Usage

Due to budget constraints, we're offering a $3,000 lump sum increase instead of the standard 3% base salary adjustment this year.

Origin

Emerged in the 1980s-90s as companies sought to control fixed labor costs

Fun Fact

Lump sum increases don't compound over time or affect percentage-based benefits, making them significantly cheaper for employers than permanent raises.

Source: Compensation management and salary administration

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