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Pay rise & inflation

What pay rise would keep up with inflation?

Check whether a proposed pay rise keeps pace with rising prices. Compare annual gross salary before tax, using pay and inflation changes measured over the same period.

By QuidCast · Published 15 September 2026 · Educational estimates

Explore your numbers

All starting figures are examples. Replace them with your own assumptions. Calculations run on your device; inputs are not sent to QuidCast.

A worked example

On a £35,000 salary, a 3% rise produces £36,050. With 4% inflation, £36,400 would preserve the same gross purchasing power. The proposed rise leaves gross pay about 0.96% lower in real terms.

How the calculation works

Proposed salary = current salary × (1 + pay-rise rate). Inflation-matching salary = current salary × (1 + inflation rate). Real pay change = [(1 + pay-rise rate) ÷ (1 + inflation rate) − 1] × 100.

Assumptions and limits

This is not a take-home pay calculator. It excludes Income Tax, National Insurance, pension deductions, student loans, benefits, bonuses and changes in working hours. Gross purchasing power and household spending power can differ. Rates are illustrative, not current inflation data.

This tool provides general educational estimates, not personal financial advice.

Common question

Does matching inflation guarantee the same take-home buying power?

No. Your deductions can change, and your own bills may rise at a different pace from the inflation rate you enter. Use this as a gross-pay comparison, not a tax calculation or salary recommendation.

Understand the context

Read the related QuidCast guide · Explore money news

Background source: Bank of England: understanding changes in prices. The source explains the topic; the calculator and examples are QuidCast’s.

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