Simple Pay Rise Calculator For 2026

What The Salary Increase Calculator Works Out

• New salary: the current salary multiplied by one plus the rise. 5% on GBP 30,000 is GBP 31,500. UK pay settlements have typically run at 3% to 5% a year recently, with the public sector and minimum wage sometimes higher.
• Percentage change (compare mode): the new salary minus the old, as a percentage of the old. This is the honest way to judge an offer against inflation and the strongest card in a pay negotiation.
• Extra per month and per year: the gross difference, before deductions. GBP 1,500 a year is GBP 125 a month gross.
• Real-terms change (advanced): the rise adjusted for your inflation figure using (1 + rise) / (1 + inflation) - 1. A 3% rise during 4% inflation is a real pay cut of about 1%, however it is framed. CPI has run between 2% and 4% for most of the last two years.
• Take-home extra per month (advanced): the rise after your marginal income tax and National Insurance rate (28% basic, 42% higher, 47% additional) and any pension percentage. Between GBP 100,000 and GBP 125,140 the withdrawal of the personal allowance produces a 62% marginal rate, so a rise there delivers under 40p in the pound.
• Backdated lump sum (advanced): the monthly difference multiplied by the months of arrears, which usually arrives in one payslip and is taxed in that pay period, so a little extra tax may be deducted and later refunded through your code.
• Salary after N years (advanced): compounds the same percentage rise every year, and shows what that is worth in today's money at your inflation rate. Five years of 5% turns GBP 30,000 into about GBP 38,300.
• Extra into your pension (advanced): the share of the rise that goes into your pension at your contribution rate, before any employer match. If a rise is refused, employer pension contributions, extra holiday and one-off bonuses are all worth money too, and pension contributions arrive free of tax and NI.