Enter your initial pay and a percentage increase into the calculator below to determine your new pay rate.
- Future Value Calculator
- Depreciation Calculator
- Certificate of Deposit Calculator
- Hourly Pay Calculator
Pay Raise Formula
The following formula is used to calculate a pay raise.
NP = OP * (I/100+1)
- Where NP is the new pay rate
- OP is the original pay rate
- I is the percentage increase in pay
The original pay rate refers to the initial or starting wage agreed upon or designated for a specific job or employee.
The percentage increase in pay refers to the amount by which an individual’s salary or wages have grown relative to its original value.
Pay Raise Definition
A pay raise is an increase in salary or wages received by an employee from their employer. It is important because it rewards employees for their hard work, dedication, and contributions to the company.
A pay raise also helps to motivate and retain talented employees, boosting morale and job satisfaction. Additionally, it can help employees keep up with inflation and improve their financial well-being.
How to calculate a pay raise?
How to calculate a pay raise
- First, determine your original pay
Use the hourly rate your company gives you or your salaried rate.
- Next, determine the pay increase
This should be a percentage increase.
- Calculate your new pay rate
Enter the information from steps 1 & 2 into the calculator to determine your new pay rate.
FAQ
A pay raise is an increase in wages for your job that arises from good performance or a change in responsibilities.