• HR is the hourly pay rate ($/hr) • PI is the lump sum merit percentage increase (%) • HR is the number of weeks of pay (weeks) ## How to Calculate Lump Sum Merit Increase? The following steps outline how to calculate the Lump Sum Merit Increase. 1. First, determine the hourly pay rate ($/hr).
2. Next, determine the lump sum merit percentage increase (%).
3. Next, determine the number of weeks of pay (weeks).
4. Next, gather the formula from above = LSMI = (HR*PI/100) * W*40.
5. Finally, calculate the Lump Sum Merit Increase.
6. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem:

Use the following variables as an example problem to test your knowledge.

hourly pay rate (\$/hr) = 20

lump sum merit percentage increase (%) = 5

number of weeks of pay (weeks) = 30

LSMI = (HR*PI/100) * W*40 =  ?