1. What is Wage Percentage Increase?

The wage percentage increase measures how much a salary has grown compared to its previous amount. It's commonly used in UK government and public sector pay negotiations to quantify pay rises and compare them with inflation rates.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• New Wage — The current or proposed wage amount in GBP
• Old Wage — The previous wage amount in GBP

Explanation: The formula calculates the relative change between two wage figures, expressed as a percentage of the original wage.

3. Importance of Wage Increase Calculation

Details: Calculating wage increases helps employees understand their pay rises in context, allows comparison with inflation rates, and is essential for collective bargaining and pay negotiations in the public sector.

4. Using the Calculator

Tips: Enter both wage amounts in GBP (pounds sterling). The old wage should be the previous amount before any increase, and the new wage should be the current or proposed amount.

5. Frequently Asked Questions (FAQ)

Q1: Should I use gross or net pay for this calculation?
A: For official purposes, gross pay (before tax) is typically used as it provides a consistent basis for comparison.

Q2: How does this compare to inflation rates?
A: To determine real wage growth, subtract the inflation rate from your percentage increase. A positive result means your purchasing power has increased.

Q3: What's considered a good wage increase?
A: This varies by sector and economic conditions. In recent years, UK public sector increases have typically ranged between 2-5%.

Q4: Can this calculator show percentage decreases?
A: Yes, if the new wage is lower than the old wage, the result will be a negative percentage, indicating a decrease.

Q5: How often should wage increases be calculated?
A: Typically annually, though some contracts may specify different periods. Public sector workers should check their pay scales and incremental dates.