How the pay rise calculator works
Type in your current yearly salary and your pay rise, either as a percentage or as a cash amount. The calculator adds the rise to your salary, splits the difference into monthly and weekly amounts, and compares the percentage with the latest UK inflation figure so you can see whether the rise is a real increase or just keeping up with prices.
It also estimates the extra you'll actually see in your bank account each month after 2026/27 income tax and National Insurance, using the same rules as our take-home pay calculator. That figure assumes no pension contributions or student loan, so yours may be a little lower.
How to work out a percentage pay rise
Pay rise % = (new salary − old salary) ÷ old salary × 100
So a 4% pay rise on £35,000 is £35,000 × 1.04 = £36,400. That's £1,400 a year more, or £116.67 a month before tax. If you've been offered a cash amount instead, divide it by your current salary: a £1,500 rise on £30,000 is 1,500 ÷ 30,000 × 100 = 5%.
Does my pay rise beat inflation?
A pay rise only makes you better off if it's bigger than the rise in prices. The usual measure in the UK is the Consumer Prices Index (CPI), published monthly by the Office for National Statistics. CPI rose by 3.5% in the 12 months to September 2026, up from 3.1% in August, according to the ONS release of 21 October 2026. The next figure is due on 18 November 2026, so you can change the inflation box when it comes out.
To find the real-terms change, divide one plus your pay rise by one plus inflation:
With a 4% rise and 3.5% inflation that's 1.04 ÷ 1.035 − 1 = 0.48%. Simply subtracting (4 − 3.5 = 0.5) gets you close, but the division is the precise answer. A 2% rise with 3.5% inflation works out at a real-terms cut of 1.45%.
Worked example: £35,000 with a 4% rise
| Before rise | After rise | Difference | |
|---|---|---|---|
| Salary before tax | £35,000 | £36,400 | +£1,400 |
| Income tax | £4,486 | £4,766 | +£280 |
| National Insurance | £1,794.40 | £1,906.40 | +£112 |
| Take-home pay | £28,719.60 | £29,727.60 | +£1,008 |
| Take-home per month | £2,393.30 | £2,477.30 | +£84 |
A basic-rate taxpayer in England, Wales or Northern Ireland pays 20% income tax and 8% National Insurance on the extra, so keeps 72p of every £1 of the rise. A higher-rate taxpayer pays 40% plus 2%, so keeps 58p: a 3% rise on £60,000 adds £1,800 a year, or £87 a month after tax. If the rise takes you over £100,000, you start losing your Personal Allowance and keep much less.
Pay rise percentages at a glance
| Salary | 2% rise | 3% rise | 5% rise |
|---|---|---|---|
| £25,000 | +£500 (£41.67/month) | +£750 (£62.50/month) | +£1,250 (£104.17/month) |
| £35,000 | +£700 (£58.33/month) | +£1,050 (£87.50/month) | +£1,750 (£145.83/month) |
| £50,000 | +£1,000 (£83.33/month) | +£1,500 (£125/month) | +£2,500 (£208.33/month) |
Monthly figures are before tax.
Tips for asking for a pay rise
- Use the inflation figure: if your employer offers less than CPI, point out that it's a real-terms cut. Quote the ONS figure and the month it covers.
- Compare like with like: a one-off bonus isn't the same as a rise in base pay, because it doesn't carry forward into next year or into pension contributions worked out on salary.
- Check your pension: if your employer pays a percentage of salary into your pension, a pay rise increases that too.
- Look at the minimum wage: if you're paid by the hour, check the minimum wage calculator to make sure your new rate is legal.
Want to see how far your salary has been eroded over several years? The inflation calculator shows what an amount from any year since 1988 is worth today.
Frequently asked questions
How much is a 3% pay rise on £30,000?
A 3% pay rise on £30,000 is £900 a year, taking your salary to £30,900. That's £75 a month more before tax, or about £54 a month after basic-rate income tax and National Insurance.
What is the current UK inflation rate?
CPI inflation was 3.5% in the 12 months to September 2026, according to the Office for National Statistics release on 21 October 2026. CPIH, which includes owner occupiers' housing costs, was 3.6%.
How do I work out my pay rise percentage?
Take your old salary away from your new salary, divide by the old salary and multiply by 100. Going from £28,000 to £29,400 is 1,400 ÷ 28,000 × 100 = a 5% rise.
What is a real-terms pay cut?
It's when your pay goes up by less than inflation, so your money buys less than before. A 2% rise when prices are up 3.5% is a real-terms cut of about 1.45%.
How much of my pay rise will I take home?
Basic-rate taxpayers in England, Wales and Northern Ireland keep 72p of every extra £1 after 20% income tax and 8% National Insurance. Higher-rate taxpayers keep 58p. Pension contributions and student loan repayments reduce it further.
Last reviewed October 2026 using 2026/27 figures. This calculator gives an estimate for guidance only.