1. What is the 1.5% Salary Increase Calculator?

This calculator helps UK employees determine their new salary after a standard 1.5% pay increase. It's useful for understanding pay rises in annual salary reviews or cost-of-living adjustments.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Old Salary — Current annual salary before increase
• 1.015 — Represents a 1.5% increase (100% + 1.5% = 101.5% or 1.015)

Explanation: The calculation multiplies your current salary by 1.015 to add the 1.5% increase.

3. Importance of Salary Calculations

Details: Understanding pay increases helps with financial planning, budgeting, and evaluating job offers. A 1.5% increase is common for cost-of-living adjustments in the UK.

4. Using the Calculator

Tips: Enter your current annual salary in GBP. The calculator will show your new salary after the 1.5% increase.

5. Frequently Asked Questions (FAQ)

Q1: Is 1.5% a standard pay increase in the UK?
A: It varies by industry and economic conditions, but 1.5-2% is common for cost-of-living adjustments.

Q2: How does this affect my monthly take-home pay?
A: Divide the annual increase by 12 to estimate monthly change, though tax/NI deductions may vary.

Q3: Will this calculation work for hourly wages?
A: Yes, but you'd need to calculate annual equivalent first (hourly rate × hours per week × 52).

Q4: Does this include pension contributions?
A: No, this calculates gross salary only. Pension deductions would be applied afterward.

Q5: How does this compare to inflation?
A: If inflation is higher than 1.5%, your real-term purchasing power may decrease despite the raise.