How to Calculate Salary Increase Percentage in South Africa

   
Check Online Application Status 2025-2026How to Apply Online 2025-2026Check Admission Requirements 2025-2026
Tvet Colleges Online Application Form

Bursaries Closing in January 2025

Application Forms 2025-2026

How to Calculate Salary Increase Percentage in South Africa

What Is A Good Salary In South Africa?
What Is A Good Salary In South Africa?

The expectations of your staff rise along with inflation. A staggering 92% of workers anticipate a wage raise of at least 6% this year. Additionally, 31% of workers are ready to restart the raise discussion if they don’t receive a raise, and 27% are willing to look for another employment.

You might think about giving wage rises in order to stay up with the 8.5% annual inflation and keep your best workers. Find out the requirements for raises, when to provide pay raises, and how to determine a raise.

How to determine pay increases

You can choose between two approaches:

Flat raise

Increase in percentage

1. Flat raise as a method of calculating salary increases

When you give an employee a flat raise, you choose how much extra money to give them and add it to their annual income.

You can divide the yearly income by 52 (weekly), 26 (bimonthly), 24 (semimonthly), or 12 to determine the raise’s impact on the employee’s weekly or biweekly gross compensation (monthly).

Example

Let’s imagine a worker earnsR 40,000 in gross compensation annually. They make R769.23 each week in gross pay ($40,000 / 52). You make the decision to raise their pay by a flat R4,000 each year. You want to know how much more each week they will receive and what their new weekly salary would be.

First, increase their gross pay by the raise: R40,000 + R4,000 Equals R44,000

After that, split their revised gross pay by 52 weeks. $44,00052 = $846.15

Last but not least, take their new weekly salaries and divide them by their old weekly wages: $846.15 – $769.23 = $76.92.

The worker’s new yearly salary is $44,000. Their new weekly compensation is $846.15, an increase of $76.92 above their prior income.

 

 

How to figure out a pay raise: in percentage

Determine the percentage rise you want to offer.

Be aware of the new compensation you wish to pay the employee.

You are aware of the rise percentage you desire.

Calculate the raise’s total value and add it to the employee’s base pay if you know the percentage you wish to offer. Add the percentage rise to the employee’s annual gross pay after multiplying it by their current salary. Here is the equation:

 

(Old Salary X Increase%) + (Old Salary) = New Salary

Again, by dividing the employee’s yearly income by 52 (weekly), 26 (biweekly), 24 (semi-monthly), or 12 (monthly), you can calculate how much their compensation will increase (monthly).

Example

Let’s imagine you choose to give a worker an 8% rise in pay. The employee’s current salary is $50,000 per year ($50,000 / 26), or $1,923.08 every other week.

The standards for wage increases

Most organizations develop a list of salary increment requirements before awarding raises to employees to establish a common foundation for pay increases. This enables you to choose between various pay raise options.

Reasons For a pay raise

Cost of living

Terms of Service

Retention

Merit

Education

Overview of MBA
Choosing Your MBA
MBA Schools in SA
How to Apply

Read rhapsody of realities daily devotional

Rhapsody of Realities is a life guide that brings you a fresh perspective from God’s Word every day. It features the day’s topic, a theme scripture, the day’s message, the daily confession and the Bible reading plan segment. It is God's Love Letter to You!