With inflation approaching 4% - for someone that is paid at the higher marginal rate of income tax to break even after inflation (i.e.: not be paid less than the previous year), their annual pay rise should be double the inflation rate (8%). That would result in a net pay increase of (a bit less than) 4% - which would cover the inflation rate.
Is that correct or not? If so - I imagine a lot of people will see their salaries drop in inflation-adjusted terms.
Is that correct or not? If so - I imagine a lot of people will see their salaries drop in inflation-adjusted terms.