I never thought there was actually a name for this which adds to how fiasco the whole thing is. But back to one of my earliest companies, my colleague had a very interesting encounter. After months of working really hard he felt the need to ask for a much deserved raise. So went by the HR and completed everything and they told him that he’ll get a raise as per the company’s ladder effective next month. To his much surprise the next month, his net salary actually dropped (that’s your take-home amount). So he stormed to the HR and he’s arguing how could they demote him whilst they promised a pay-raise. The HR explained to him there was a glitch (Tax Bracket Creep) while his gross salary increased (5000), his net salary dropped because he’d have to pay the full 25% social insurance deductions.