How To Calculate Salary, Hourly Wage Increase Amount From A Percent, Percentage Raise Explained

In this video we discuss how to calculate a salary or hourly wage increase amount from a percent or percentage raise. We go through a couple of examples for salary and hourly wage.

Transcript/notes
The formula for calculating how much a raise or an increase in pay or salary is, given a percent raise, is the increase amount equals, the old salary or hourly wage times the percent of the raise.

In this formula, the old salary or hourly wage is their current earnings, before the raise, and the percent raise is the percent increase of their raise.

As an example, if someone makes $27,450 and receives a 2.5% raise, how much is the amount of the raise and how much is their new salary?

Using the formula, we have the increase amount equals, $27,450, their old salary, times 2.5%, which we must change to a decimal by dropping the percent sign and moving the decimal 2 places to the left to get .025.

Doing the calculations we get $686.25 as the increase amount. To calculate their new salary, we add the raise of $686.25 plus their old salary of $27,450, which equals $28,136.25 as their new salary.

As an example for an hourly wage employee, if they were making $16 per hour and received a 4.5% raise, how much is the amount of the raise and how much is their new salary?

Using the formula, we have the increase amount equals, $16.00, their old hourly wage, times 4.5%, which we must change to a decimal, again, by dropping the percent sign and moving the decimal 2 places to the left to get .045.

Doing the calculations we get $.72 as the increase amount. To calculate their new hourly wage, we add the raise of $.72 plus their old hourly wage of $16.00, which equals $16.72 as their new hourly wage.

And here are a couple more examples of calculating a salary or wage increase amount

Timestamps
0:00 Formula to calculate raise, salary, hourly wage increase amount
0:24 Example for salaried employees
0:59 Calculate new total salary from salary increase or raise
1:14 Example for hourly wage employees
1:46 Calculate new total hourly wage from increase or raise
1:57 More examples