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Gross vs. Net Take-Home Increase: A salary increase or job offer increases your top-line gross income, but your actual take-home paycheck depends on your marginal tax bracket, payroll taxes (FICA/Medicare), and benefit withholdings.
Comparing Salary vs. Hourly: Converting hourly rate increases to annual income assumes a standard 2,080-hour work year (40 hours/week Ă 52 weeks).
How do I calculate what percentage raise I received?
Subtract your old salary from your new salary, divide by your old salary, and multiply by 100: ((New - Old) Ă· Old) Ă 100.
Why does a 10% gross raise not equal 10% more cash in my bank?
Higher gross earnings may push a portion of your income into higher marginal tax brackets, and mandatory FICA (Social Security & Medicare) taxes apply to gross earnings.
How do I convert a $5/hr raise to an annual salary increase?
Multiply the hourly raise by your annual billable/work hours. For full-time (40 hrs/wk), $5 Ă 2,080 hours = $10,400 annual gross increase.