Pay Rise Calculator

A pay rise is calculated as a percentage increase on your current salary. To work it out manually, multiply your current salary by the percentage and divide by 100. For example, a 5% rise on a £30,000 salary is £1,500, giving you a new salary of £31,500.

Keep in mind that the amount you actually take home will be less than the gross increase. Higher earners may find that a pay rise pushes them into a higher tax band, meaning part of the increase is taxed at 40% instead of 20%. This calculator shows both the gross and net impact so you can see exactly what lands in your bank account.

The average UK pay rise in 2025 is around 4-5% according to recent surveys, though this varies widely by sector. Public sector workers have seen rises of 2-3%, while tech and finance roles have averaged 5-7%. At a minimum, your pay rise should match inflation to avoid a real-terms pay cut.

If you have not received a rise in over a year, your purchasing power has likely fallen. Use this calculator to see what your salary would need to be to match the cost of living, then use that figure when negotiating with your employer.

A pay rise only makes you better off if it exceeds inflation. If inflation is running at 3% and you receive a 3% rise, your real spending power has not changed. You need to beat inflation to genuinely earn more. CPI inflation in the UK was around 3-4% through early 2025.

When negotiating a raise, frame it in these terms. Asking for an 'inflation plus 2%' rise is more compelling than asking for a specific number, because it acknowledges the economic context and positions the request as reasonable.