How to Calculate a Salary Increase
A percentage rise is easy to misjudge until you see it as an amount. This guide turns the percentage into annual and monthly figures.
What is the Salary Increase Calculator?
The increase is the current salary multiplied by the percentage and divided by 100. Adding the increase to the current salary gives the new salary, and dividing the new salary by 12 gives the new monthly pay. These are gross figures before deductions.
How to use it
- Enter your current annual salary.
- Enter the increase percentage.
- Read the increase amount, the new annual salary, and the new monthly salary.
Worked example
Salary 50,000 with a 10% increase: increase 5,000, new salary 55,000, new monthly salary 4,583.33.
What is a 10% increase on a salary of 50,000?
The increase is 5,000, the new salary is 55,000, and the new monthly pay is 4,583.33. The increase is 10% of 50,000, adding it gives 55,000, and dividing by 12 gives 4,583.33 per month.
Frequently asked questions
Is the monthly figure gross or net?
It is gross monthly pay, before tax and deductions, since deductions vary by situation.
Can I use this for an hourly rate instead?
Yes, the same percentage method applies: multiply the hourly rate by the percentage to find the hourly increase.