This % doesn't include the price increase in food, rent, etc. Which makes it worse.
This is only inflation.
Let's assume your initial income three years ago was $100, and each year inflation was 5%. After three years, your income would be:
Year 1: $100
Year 2: $100 – ($100 * 0.05) = $95
Year 3: $95 – ($95 * 0.05) = $90.25
Now, you can calculate the percentage decrease:
Percentage Decrease = [($100 – $90.25) / $100] * 100 = (9.75 / 100) * 100 = 9.75%
So, you took approximately a 9.75% pay cut in terms of purchasing power over the three-year period due to inflation.
Now I'm no mathematician. I could be wrong.
If I didn't get a pay raise and inflation is at 5%. Now factor in the price of food and rent which have gone up 10 to 100% on some areas.
So, I hope to Zeus and Odin and Thor you are demanding a pay raise.
If you aren't, you are enjoying a nice pay cut.