Enter the previous year's national average wage index and the average change in wages of the previous two years (%) into the Calculator. The calculator will evaluate the Wage Index.
Wage Index Formula
WI = NAWI + NAWI * CW2/100
Variables:
- WI is the Wage Index ($)
- NAWI is the previous year's national average wage index
- CW2 is the average change in wages of the previous two years (%)
To calculate Wage Index, multiply the previous year's NAWI by the average change in wages, then add the result to the previous year's NAWI.
How to Calculate Wage Index?
The following steps outline how to calculate the Wage Index.
- First, determine the previous years national average wage index.
- Next, determine the average change in wage of previous two years (%).
- Next, gather the formula from above = WI = NAWI + NAWI * CW2/100.
- Finally, calculate the Wage Index.
- 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.
previous years national average wage index = 60,000
average change in wage of previous two years (%) = 10
