Salary calculator: How big a pay rise you need in Edinburgh for your wage to keep up with UK inflation

UK inflation is currently at an all-time high at 9%, as of April 2022.

With inflation at an all-time high, the cost of living crisis is making life harder for households across Scotland and the UK. Fuel and food costs are two of the essential costs where price increases are being felt most keenly.

But why does inflation affect the average consumer – and how much more would you need to earn to avoid feeling the effects of inflation as badly? Here’s what you need to know.

What is inflation?

Hide Ad
Hide Ad

Inflation is the general term used to describe increases in prices and decreases in the purchasing value of money over time. This can mean that the average consumer may be able to buy less for the same amount of money, if the price of items increases but their pay stays the same.

On a small scale, inflation can be good for the economy, encouraging consumers to buy items sooner and therefore boosting the economy. However, when inflation is too high, it can cause widespread problems for both consumers and businesses.

Read More
What does high inflation mean? What happens when inflation rises and what it mea...

How big has your pay cut been?

The UK economy contracted for the second month in a row in April in the first back-to-back fall since Covid struck in 2020 as the cost-of-living crisis brought Britain's pandemic recovery to an abrupt end. Photo: Dominic Lipinski/PA Wire.The UK economy contracted for the second month in a row in April in the first back-to-back fall since Covid struck in 2020 as the cost-of-living crisis brought Britain's pandemic recovery to an abrupt end. Photo: Dominic Lipinski/PA Wire.
The UK economy contracted for the second month in a row in April in the first back-to-back fall since Covid struck in 2020 as the cost-of-living crisis brought Britain's pandemic recovery to an abrupt end. Photo: Dominic Lipinski/PA Wire.

As inflation climbed to 9%, it doesn't just affect the cost of things you’re buying, but also the value of the money you’re taking home. Looking at an example of a person who takes home £1,000 per month after tax, they would need to earn £1,089.92 to have the same value of money to spend.

This means they are taking a real terms pay cut of £89.92 if their salary doesn’t increase according to current inflation rates. These figures do not take increased National Insurance contributions from April 2022 into account.

To find out your own personalised pay cut, type your take home monthly salary into the salary calculator on this page.

Comments

 0 comments

Want to join the conversation? Please or to comment on this article.