Pay Rise Calculator

How to calculate a pay rise

A pay rise percentage compares the increase with your current salary. The formula is:

Pay rise % = (new salary − old salary) ÷ old salary × 100
Dollar increase = new salary − old salary

If you move from $90,000 to $100,000, the increase is $10,000 and the percentage is $10,000 ÷ $90,000 × 100 = 11.1%. It is not 10%, because the increase is measured against the old salary, not the new one. A move from $100,000 to $110,000 is a 10% rise, while a move from $110,000 back to $100,000 is a 9.1% pay cut.

Percentage rises are useful for comparing across different salaries and for checking whether your pay is keeping up with inflation. Dollar increases are useful for understanding what actually changes in your bank account. The calculator shows both, plus the after-tax value in each pay period.

Why the extra take-home is lower than the raise

Australia uses progressive income tax rates, so the raise is not taxed at your average rate. It is taxed at your marginal rate: the rate that applies to the next dollar you earn. For 2026–27, the resident marginal rates are 15%, 30%, 37% and 45%, plus the 2% Medicare levy for most taxpayers.

Someone on $90,000 is in the 30% bracket, so a $10,000 raise is taxed at 32% including Medicare. The extra tax is about $3,200 and the extra take-home is about $6,800. The raise is still worth $6,800 a year, but it does not add $10,000 to your bank account. If the raise pushes you into a higher bracket, only the part above the threshold is taxed at the higher rate, not the whole salary.

Other deductions can reduce the extra take-home further. A HELP or HECS-HELP debt increases the compulsory repayment rate as income rises. Salary packaging, reportable fringe benefits and investment income can also affect the final tax result. This calculator estimates income tax and Medicare only, so use the main salary calculator if you need HELP or other income included.

Extra take-home by pay period

Employers pay in different cycles, so the same annual raise looks different on each payslip. The calculator converts the extra after-tax annual amount into monthly, fortnightly and weekly figures using 12, 26 and 52 pays per year.

Based on a $10,000 raise from $90,000 to $100,000, with income tax and Medicare only. Actual withholding depends on the ATO’s PAYG schedules and your payroll system. A raise partway through the year is apportioned across the remaining pays.

Super, leave and other effects

Employer super guarantee is generally calculated on ordinary time earnings, so a higher salary usually increases employer super as well. At the 12% guarantee, a $10,000 raise adds about $1,200 a year to super, subject to the maximum contribution base. That money is paid on top of your salary and is not part of take-home pay.

A raise can also affect:

• Annual leave and leave loading if they are calculated on your ordinary pay rate.
• Overtime and penalty rates where the base rate is used to calculate them.
• Redundancy and notice pay where entitlements are based on weekly pay.
• Income-tested benefits such as family assistance, child care subsidy and some Centrelink payments.
• HELP repayments, because the repayment rate rises with repayment income.

If you are deciding between a higher salary and extra super, the salary sacrifice calculator compares the income tax saved with the 15% contributions tax. If you are moving from an hourly rate, the hourly to salary calculatorconverts the rate into an annual salary first.

Pay rise examples

Rounded estimates using 2026–27 resident rates, the Medicare levy and no HELP debt or deductions. The extra take-home changes when a raise crosses a tax bracket, because only the income above the threshold is taxed at the higher rate.