salary adjustment due to inflation,,how to ??

D

driller

Hello,

i'm not an accountant nor an experienced administrator yet i am just curious
how to make a fair calculator for this one.

Any help will be appreciated...

thanks in advance,

regards,
driller
 
T

Toppers

At its simplest, if annual inflation is 5% then increase salary by same amount:

New Salary=Old Salary*1.05

The problem with a "across the board" % increase is that the gap between the
"rich" and "poor" widens so maybe you give a greater % to the low earners
(and hence a lesser % to the high earners) but ensure that your overall
salary bill increases by no more than 5%.
 
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