Pay Rise Calculator UK

Work out your new salary, the percentage increase, and whether it's a real-terms pay rise after UK inflation.

Pay Rise Details
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Frequently Asked Questions

A "good" pay rise depends on inflation and your sector. As a rule of thumb, anything above the current UK CPI inflation rate is a real-terms pay rise (i.e. your buying power increases). The Bank of England target is 2% — so a pay rise of 3-5% in a low-inflation year is generally considered solid. In high-inflation years, even a 6% rise may be a real-terms pay cut.

Percentage increase = ((New Salary − Old Salary) / Old Salary) × 100. For example, going from £30,000 to £31,500 is a £1,500 / £30,000 × 100 = 5% pay rise. This calculator works in either direction — give it the new figure or the percentage and it fills in the rest.

A real-terms pay rise is one that exceeds the current rate of inflation, meaning your purchasing power actually increases. If you get a 3% pay rise but inflation is 5%, that is a real-terms pay cut of about 2% — your money buys less than before, even though the headline number is bigger.

In the UK, only the part of your salary above each tax threshold is taxed at the higher rate, not your entire salary. So even if a pay rise crosses you into the 40% band, you keep significantly more take-home pay than before. The marginal rate (what you keep of each extra pound) is what changes. Use our Take Home Pay Calculator to see the exact net impact.

Most UK employers review salaries annually. Cost-of-living rises typically track inflation (or below), while merit-based or promotion-based rises can be 5-15% or more. If you have not had a rise in 18-24 months and your role or market value has grown, it is reasonable to request a review.
Tips for Negotiating
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