The Illusion of Wage Rise

In March, the Civil Servants (PNS) and the Indonesian National Army will receive salary increases are calculated since January. Blessings such as these, in general, certainly occurred to many private sector employees.
When a salary increase (or opportunity funds holding more than usual), we often feel our purchasing power rises. Welfare as we were rising.
However, has it ever occurred to the question: Is it true that the money we have is greater than in previous years?
Let's create a simple parable. For example, with a salary last year to Rp 2.5 million per month, we could buy 20 shirts at a price of each piece of Rp 100 thousand and deposit the remaining $ 500 thousand. Assume a 10 percent salary increase, to $ 2.75 million. Could it still be worth the same?
Normally, goods prices are always higher than the general salary increase. Wages only for inflation, plus a bonus (not permanently) if there is one. While prices are influenced by inflation and expectations of demand - of course in addition to the cost of production.
Manufacturers would think that the expectations of demand for goods (like shirts) will be high, given that nominal incomes rise. Therefore, they usually will raise prices. It could also be coupled with the expectation of rising production costs due to increase of its components, such as the planned increase in gasoline prices and electricity tariffs as happens now.
Therefore, it is not impossible even a salary increase, we would no longer be able to buy 20 shirts as before. Events such as this often happens because the pattern of salary increases are almost routine every beginning of the year.
Announcement of civil servants salary increases and member of the Armed Forces - and the possible added cost of production - has made the manufacturers or sellers expect prices to rise due to inflation. As a result, they had come to raise the selling price which would contribute to the rate of inflation.
Unfortunately, many employees (regular salaried) who are less careful about this situation. They tend to assume, real income increases, so as to consume the goods in greater amounts.
Result in the recent months we feel the impact. Its money supply even more depleted when the salary he received was greater in nominal terms.
No need to work as an economist to realize and can tell which is the nominal wage or salary, and which is called the real wage or salary. Nominal salary is the salary that we generally understand as wages in nominal terms, such as dollars that we receive every month from companies or institutions in which to work.
While real wages, the amount measured by its ability when exchanged for an item. For example, the salary and shirts had an illustration. With a salary increase of 10 percent to Rp 2.75 million, while apparel prices rose to USD 125 thousand, then we are only able to buy 20 pieces of clothing, but the rest of the money to be saved to Rp 250 thousand.
To be more concrete, please replace it with a shirt permisalan daily basic needs. The benefits of knowing the difference is nominal and real wages to be more wise to address the increase of regular income. Thus, cash flow personal or household stay healthy and running well.
And most importantly, do not get a big salary increase would lead to personal or family cash flow becomes negative alias you a big wedge of the pole.
Let's calculate both the real wage - not nominal. Is there an increase or even decrease? Do not let the loss of dealers at the end of the month.