Updated September 2026: in 2018 I wrote about working out my hike percentage from my revision letter, then learning that colleagues had similar or much larger hikes. I have rewritten it into a guide to calculating a salary hike correctly and dealing with comparisons.
As soon as I downloaded my revision letter, I opened the Mac calculator and tried rough numbers, starting low so I would not be disappointed, until I reached what looked like a middling hike. At the office nobody mentioned hikes for a few hours. Then a colleague asked about mine. I gave him a figure slightly below my own and asked about his, and was surprised that his was almost the same. I told myself he must have had a better rating than me.
How do you calculate a hike correctly?
- Use fixed pay: new fixed annual pay minus old fixed annual pay, divided by old fixed pay.
- Treat variable pay separately: it depends on targets and is not guaranteed.
- Check the effective date: a backdated revision changes what you receive this year.
- Look at take-home pay: after tax and deductions, on the first new payslip.
Why do colleagues' hikes differ from yours?
Ratings are one factor. Others include where you sit in your salary band, market rates for your skills, retention risk and budget differences between units. Two people with the same rating can get very different hikes for reasons neither can see.
Should you discuss hikes with colleagues?
Many employers ask staff to keep pay confidential. Sharing numbers often causes more upset than insight, especially when the figures are rounded or, as I did, understated. If you want context, market salary surveys are more reliable than office conversations.
What should you do if you feel underpaid?
Collect evidence: your rating, your achievements and market data for your role. Ask your manager how the hike was decided and what would change it. That conversation is more useful than comparing numbers in the corridor.
What did I learn from checking my own numbers?
That a quick calculation done in a hurry can be wrong in either direction. Take the letter home, work it out once with the correct figures, and only then decide how you feel about it.
No comments
Post a Comment