Which of the following is NOT a typical type of pay increase?

• A. Merit increases.
• B. Wage adjustments based on market surveys.
• C. Promotional increases.
• D. Cost of living adjustments (COLA).

Answer: (C)

Focusing on how compensation is typically adjusted, the common annual or regular increases fall into three categories: merit increases, which reward performance; market-based adjustments, which align pay with external wage levels from surveys; and cost of living adjustments, which account for inflation. A promotional increase, however, comes from moving into a higher job level with expanded responsibilities. It’s tied to a change in role rather than a regular policy applied across the workforce, so it isn’t considered a standard type of ongoing pay increase. The other options reflect routine adjustments used in many organizations, while a promotion-based raise is event-driven and specific to role changes.