How to use the pay rise calculator
The formulas
New salary = current salary × (1 + rise% ÷ 100). Working backwards: rise% = (target − current) ÷ current × 100.
Budgeting a pay round
Remember that a pay rise usually lifts percentage-based employer costs too. If pension and payroll on-costs total 20%, a $2,500 rise costs the company about $3,000. Run the new salary through the True Employee Cost Calculator to budget the full effect, and multiply by headcount in the Headcount Budget Planner for a whole-team view.
Real-terms check
A rise below inflation is a real-terms pay cut. Comparing the percentage here with the current inflation rate for your country gives a quick sense of how an offer or award feels to the employee.
Example
$50,000 with a 5% rise = $52,500 per year — an increase of $2,500, or $208.33 per month.
Frequently asked questions
What is a 5% rise on $50,000?
5% of $50,000 is $2,500, giving a new salary of $52,500 — about $208 more per month.
What percentage rise takes $48,000 to $50,000?
(50,000 − 48,000) ÷ 48,000 × 100 = 4.17%. Use the "By target salary" tab and the tool works it out for you.
Does a pay rise change the hourly rate?
Yes, proportionally. This tool shows the old and new hourly rates side by side using your hours-per-week figure.
Should employer costs be included in a pay-rise budget?
Ideally yes. Percentage-based on-costs (pension, payroll taxes) rise with salary, so the company cost of a rise is higher than the salary increase alone.
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