Salary Increase Cost Calculator

Calculate the annual salary and estimated employment-cost impact of a percentage or fixed pay increase.

Enter salary increase information

Current annual salary per employee.
Used for a percentage increase.
Used for a fixed annual increase.
Use 1 for an individual employee.
Optional. Enter a combined percentage of the salary increase.

Result

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Enter the information and select Calculate.
How the calculation works
Complete the relevant fields to see the calculation and an explanation of the result.

Budgeting use

This calculator is designed for budgeting the annual cost of a salary increase. It can apply either a percentage or fixed increase to one or more employees and optionally add an assumed percentage for employer on-costs.

Tip: For a payroll-accurate budget, check the applicable employer National Insurance and pension rules separately rather than relying on a single on-cost percentage.

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This calculator provides general HR information and practical use. It does not constitute legal advice. Check current official guidance and the employee's contract, policy and applicable legislation before relying on the result.