1. What is a 3% Salary Increase?

A 3% salary increase is a common annual raise in Australia that adjusts an employee's compensation to account for factors like inflation, cost of living increases, and merit-based performance rewards.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Old Salary — Current annual salary in Australian Dollars (AUD)
• 1.03 — Represents a 3% increase (100% + 3% = 103% or 1.03)

Explanation: The calculation multiplies your current salary by 1.03 to determine your new salary after a 3% increase.

3. Importance of Salary Increase Calculation

Details: Understanding how salary increases affect your earnings helps with financial planning, budgeting, and evaluating job offers or promotions.

4. Using the Calculator

Tips: Enter your current annual salary in AUD. The calculator will show your new salary after a standard 3% increase.

5. Frequently Asked Questions (FAQ)

Q1: Is 3% a standard salary increase in Australia?
A: Yes, 3% is a common annual increase, though it varies by industry, company performance, and individual circumstances.

Q2: How does this compare to inflation?
A: As of 2023, Australia's inflation rate has been higher than 3%, meaning a 3% increase may not fully cover rising living costs.

Q3: Are salary increases taxed differently?
A: No, salary increases are taxed at your marginal tax rate like your regular income.

Q4: What if I get a different percentage increase?
A: Simply replace the 1.03 in the formula with your actual increase factor (e.g., 1.05 for 5%).

Q5: Does this include superannuation?
A: No, this calculates base salary only. Superannuation is typically calculated separately at 11% (as of 2023/24).