Enter the original and new wage to determine the percentage decrease in wage. This calculator helps to understand the impact of wage changes on an hourly basis.
Wage Decrease Formula
The following formula is used to calculate the percentage decrease in wage:
Decrease = ((Original Wage - New Wage) / Original Wage) * 100
Variables:
- Original Wage is the initial wage rate per hour before the decrease.
- New Wage is the wage rate per hour after the decrease.
- Decrease Percentage is the percentage reduction from the original wage to the new wage.
To calculate the wage decrease percentage, subtract the new wage from the original wage, divide by the original wage, and then multiply by 100 to get the percentage.
What is Wage Decrease?
A wage decrease refers to a reduction in the rate of pay that an employee receives. It can occur for various reasons, such as economic downturns, company restructuring, or changes in job responsibilities. Understanding the percentage decrease in wage can help employees and employers assess the impact of such changes on personal finances and compensation structures.
How to Calculate Wage Decrease?
The following steps outline how to calculate the Wage Decrease Percentage.
- First, determine the original wage rate per hour.
- Next, determine the new wage rate per hour after the decrease.
- Use the formula to calculate the decrease percentage.
- Finally, calculate the Wage Decrease Percentage.
- 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.
Original Wage = $25 per hour
New Wage = $20 per hour
