An inflation pay rise (or cost-of-living adjustment) is an increase in salary intended to maintain your purchasing power as prices for goods and services rise.

If inflation is 5% and your salary stays the same, you are effectively taking a 5% pay cut in terms of what you can buy. A 'fair' pay rise at least matches the CPI (Consumer Price Index) rate.

We use the latest available ONS CPI monthly annual rate. Currently, this data is updated as of August 2025.

This calculator is for informational purposes. While it uses official tax and inflation data, individual circumstances (like student loans or specific pension rules) may vary.