Pay rise vs inflation calculator (UK)
Official inflation in UK was 3.5% in September 2026. A pay rise has to be at least 3.5% just to keep up with prices.
Real pay change after inflation: -0.5%
Common pay rises against inflation in UK
| Pay rise | After inflation | Result |
|---|---|---|
| 1% | -2.4% | Falls behind |
| 2% | -1.4% | Falls behind |
| 3% | -0.5% | Falls behind |
| 4% | +0.5% | Beats inflation |
| 5% | +1.4% | Beats inflation |
| 7% | +3.4% | Beats inflation |
| 10% | +6.3% | Beats inflation |
How this is calculated
- Real change = (1 + pay rise) ÷ (1 + inflation) − 1, using the latest official 12-month inflation rate. Vernumo does this calculation.
- Your own cost of living depends on what you buy and where you live. Taxes and deductions are not included.
Sources
Office for National Statistics (UK) · September 2026 · Latest value