How to Figure a Salary Increase

High productivity can lead to raises.

Often, when your employer gives you a raise, it will measure the increase as a percentage of your current pay rather than as a specified dollar amount. For example, instead of granting a $1,000 raise, the employer might grant a 5 or 10 percent raise. When the raise is given as a percentage, you need to know your current salary to figure out the dollar amount of the raise.

Things You'll Need

• Calculator

Instructions

1. Divide the percentage increase in your wage by 100 to change the percent to a decimal. For example, if you earn an 8.5 percent raise, divide 8.5 by 100 to get 0.085.

2. Multiply the raise expressed as a decimal by your current salary to find the amount of the raise. In this example, if your current salary equals $78,000, multiply 0.085 by $78,000 to get $6,630.

3. Add the amount of the raise to the original salary to find your new salary after the increase. In this example, add $78,000 to $6,630 to find your new salary -- $84,630.

References

• My Wage.org: How to Calculate A Salary Raise