how to calculate salary hike
Regardless of the amount, or if there is a cost of living increase for all employees, there is a standard way to calculate the increase. Step 1. Determine the yearly salary before the increase. This is the annual gross figure the employee received prior to the raise; for example, $50,000.Step 2. Compute the raise based on the percentage or the flat amount given. Percentage example: $50,000 x 4 percent (.04) = $2,000 annual increase.Therefore, the new annual salary is $52,000. The flat amount example would be: $50,000 + $1,500 = $51,500, the new annual salary.or example, say the employeeâs annual salary went from $49,000 to $51,000 (an annual increase of $2,000), effective at the start of the prior biweekly pay period.