how to calculate salary increase based on inflation

To calculate salary increase based on inflation, follow these steps:

  1. Determine the inflation rate for the period in question.
  2. Calculate the difference between the current salary and the cost of living increase.
  3. Multiply the difference by the inflation rate to get the salary increase amount.
  4. Add the salary increase amount to the current salary to get the new salary. Note: Inflation rates can be found from government statistics or financial news sources.

The effects of inflation are often not directly felt but are played out over a long time, especially long-term investments are vulnerable to inflation.


At Horizon65, we created a mobile app that enabled you to check the effect of inflation on your savings.

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