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