10 % up then 10 % down means you lose out

Level pending

If the worker was being paid 100 Rs .

A worker's boss explains that in order to stay competitive he will have to cut his pay by 10% but he will allow the employee to work 10% more hours to make up for it, "so your pay will be maintained".

Now , what was being paid to worker .

100 90 99 110

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1 solution

Vibha Sharma
Jan 9, 2016

If the worker was being paid, say, Rs 100, then

10% cut takes him down to Rs90.

The 10% extra hours will add back on 10% of Rs 90, which gives him Rs 99. He is still Rs1 worse off.

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