Quickly calculate how a pay increase will impact salaries with our Pay Raise Calculator. Just enter an employee’s current pay and raise percentage (or fixed increase) and instantly see the new annual, monthly, and weekly salary.
This tool helps business owners and managers plan raises responsibly—without guesswork or miscalculations.
Fill in one or more of the following fields to set the employee’s current salary details:
The calculator automatically updates all related fields as you enter values.
The calculator will instantly show the new salary figures.
Once the raise is applied, you’ll see:
Want to test different salary increase options? Adjust any input and the calculator updates in real-time.
This tool helps businesses budget for raises, forecast labor costs, and ensure fair compensation for employees.
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New Weekly SalaryDeciding on raises isn’t just about picking a number and calling it a day. You need to find the balance between keeping employees happy, staying competitive, and making sure your business can actually afford it. Here’s how to do it right.
There are two main ways to give a raise:
This is the go-to for salaried employees. Raises are based on a percentage of their current pay, so everyone gets an increase relative to their existing salary.
Example:
When to use it:
Instead of a percentage, you increase pay by a set amount—like adding $1/hour for all hourly workers or giving every employee a $2,000 raise.
When to use it:
Both methods work, but the right one depends on how your team is structured and your budget.
Raises aren’t just about rewarding hard work—they need to be sustainable and competitive. Here’s what to factor in before making a decision:
Raises aren’t a one-time cost. Once you increase pay, it’s part of your payroll going forward. Double-check your budget to make sure it’s sustainable.
Some companies give annual raises no matter what, while others base them on performance, tenure, or company profits. Decide what makes sense for your business.
Employees talk, and if they realize competitors are paying more, they might leave. Make sure your pay stays in line with industry standards.
If inflation is high, a 3% raise might not feel like much. Consider adjusting raises to actually improve take-home pay rather than just keeping up with inflation.
A raise means more when it’s done well. Here’s how to roll out salary increases in a way that keeps employees engaged and your business on track:
Giving raises is just one part of running a smooth, well-managed business. If you’re looking for an easier way to handle payroll, track employee hours, and manage your team, Connecteam has everything you need in one app.
Before deciding on raises, you need to know exactly how many hours your employees work. With Connecteam’s time clock, employees can clock in and out from their mobile devices, and you get real-time tracking of work hours, breaks, and overtime. No more guessing or manual calculations.
Got a growing team? Connecteam’s scheduling feature makes it easy to assign shifts, set up recurring schedules, and notify employees of changes instantly. You can also prevent unnecessary overtime by keeping track of employee hours in real-time.
Tired of messy payroll calculations? With Connecteam, you can automatically export accurate timesheets to your payroll provider, reducing errors and saving hours of admin work. This means your team always gets paid correctly and on time—including any raises you implement.
A pay raise is a big deal, and communicating it well matters. Connecteam’s communication tools let you send updates, share pay adjustment notices, and keep an open line for questions—all in one place.
Connecteam gives you everything you need to manage your workforce more efficiently—so you can focus on growing your business, not drowning in admin.
Ready to simplify payroll, scheduling, and workforce management?
A percentage-based raise (e.g., a 5% increase) is best for salaried employees since it keeps wages proportional to their existing pay. A fixed-dollar raise (e.g., an extra $1/hour) works well for hourly employees, especially when adjusting for minimum wage increases or market rates. Consider your budget, industry standards, and employee contributions when choosing the right method.
Most businesses give raises annually during performance reviews, but this depends on your industry, company finances, and employee performance. Some businesses also offer cost-of-living adjustments (COLA) to keep up with inflation.
A standard raise is 3-5% per year, but it varies by industry, job role, and economic conditions. Competitive industries may offer higher raises (5-10%) to retain top talent, while cost-of-living raises typically match inflation rates. Researching industry benchmarks and using tools like this calculator can help ensure fair and competitive raises.
Evaluating different pay raise scenarios manually can be time-consuming and prone to errors.
A pay raise calculator streamlines this process by letting you input multiple salary figures and raise percentages to see instant results, making it easier to compare and adjust decisions efficiently.
Timing raises strategically helps maintain employee satisfaction and financial stability.
By using a pay raise calculator, you can easily assess different timing scenarios and understand their financial impact before making a decision.
This depends on your company culture. Some businesses transparently share pay raise policies, while others keep salary changes private to avoid conflicts. Whatever approach you take, be clear about how raises are determined and ensure employees understand how they can grow within your company. Connecteam’s internal communication tools make it easy to share updates and expectations with your team.