How much does my wage need to increase to cover inflation? (in the UK)?

Question

I live in the UK and have a pay review next week. I am worried that my wage will not rise enough to cover the cost of inflation and it will be like I am being paid less. How much does my wage have to increase?

Answer 1

Contact Buckingham Palace and inquire.

Answer 2

If you know the inflation rate (i); NewPay = OldPay/ (1 - i)

example: inflation = 5%, OldPay = 10000 (in any currency)

NewPay= 10000/(1 - 0.05) = 10526.32

example: inflation = 10%, OldPay = 10000 (in any currency)

NewPay= 10000/(1 - 0.1) = 11111.11

Employers usually try to use: NewPay = OldPay * (1 +i)

example: inflation = 10%, OldPay = 10000 (in any currency)

NewPay= 10000*(1 + 0.1) = 11000

Thus cheating you out of the difference.