Salary Increase Calculator
Choose what you want to calculate and enter the numbers to see the percentage and the monthly and yearly difference.
Work out your raise
How a pay rise is calculated
- Raise percentage = (new salary − old salary) ÷ old salary × 100.
- Salary after a raise = salary × (1 + percentage ÷ 100).
- After years of a fixed raise = salary × (1 + percentage ÷ 100) to the power of the number of years, because each raise applies to the salary after the previous one.
Examples:
From 8,000 to 8,800: 800 more a month (9,600 a year), a raise of 10%.
A salary of 10,000 with a 4% raise every year for 5 years becomes 12,166.53 — more than 20%, even though 5 × 4% = 20%.
How a raise affects your entitlements
End-of-service gratuity is calculated on your last wage, so each raise increases it for all your years of service. Check the difference in the Saudi end-of-service calculator or the UAE gratuity calculator. In Saudi Arabia, the GOSI contribution deducted from your wage also rises; see the net salary calculator. Prefer Arabic? Use the Arabic version.
Frequently asked questions
How do I work out my pay rise percentage?
Subtract the old salary from the new one, divide the difference by the old salary and multiply by 100. From 8,000 to 8,800: 800 ÷ 8,000 = 10%.
How do I work out my salary after a 5% raise?
Multiply your salary by 1.05. A salary of 10,000 becomes 10,500 after a 5% raise, 500 more a month and 6,000 a year.
What is my real raise after inflation?
Divide (1 + the raise) by (1 + inflation) and subtract 1. A 5% raise with 2% inflation is a real increase in purchasing power of about 2.94%.
Does a pay rise affect my end-of-service gratuity?
Yes. Gratuity is calculated on the last actual wage in Saudi Arabia and the last basic salary in the UAE, so a raise lifts the gratuity for all your previous years of service, not just the last one.
Is an annual pay rise compulsory?
Neither the Saudi Labour Law nor the UAE Labour Law requires private-sector employers to give an annual raise, unless the contract or the establishment's work rules provide for one.
Sources
- General Authority for Statistics (Saudi Arabia) — consumer price index
- Federal Competitiveness and Statistics Centre (UAE) — consumer price index
Figures and formulas on this page were last reviewed on 2026-11-03.