Use our Merit Increase Calculator to evaluate performance-based pay increases with ease. Generate a clear estimate to help plan merit budgets more effectively.
Enter your details to receive the calculation results via email.
Use this calculator to estimate merit increases, then see how Enwage supports smarter compensation planning and workforce management.
See How Enwage WorksCompa-ratio shows how an employee’s current salary compares to the market or role midpoint. It helps organizations understand whether someone is paid below, at, or above the target range, making compensation decisions fairer and data driven.
Performance Rating
1st Quartile (≤70%)
2nd Quartile (71%-84%)
3rd Quartile (85%-100%)
4th Quartile (101%-115%)
5th Quartile (116%-130%)
Exceeded
10%-15%
8%-9%
6%-8%
3%-6%
0%-3%
Achieved
8%-10%
7%-8%
3%-6%
2%-3%
1%-2%
Partially Achieved
2%-3%
1%-2%
0%
0%
0%
Not Achieved
0%
0%
0%
0%
0%
Designed for managers and HR teams, this calculator offers a simple and consistent way to estimate recommended salary increases based on merit guidelines. It evaluates performance and pay positioning to generate a percentage-based increase recommendation, helping teams apply fair and structured compensation decisions with clarity.
By standardizing how merit raises are calculated, the tool helps reduce manual errors, improve pay consistency, and support transparent compensation planning across teams and departments.
Why Merit Increase Calculator
Enter Employee Compa-Ratio (%)
Shows employee pay position against market midpoint.
Select Performance Rating
Applies merit matrix based on performance level.
Set Budget Limit (%)
Keeps recommendations within approved merit budget.
Analyze Recommendation
Generates merit range and adjusted recommendation.
Support Fair Pay Decisions
Ensure consistent and transparent performance-based pay increases.
Improve Compensation Planning
Plan salary adjustments while staying within budget limits.
Reduce Manual Errors
Avoid spreadsheet mistakes and inconsistent calculations.
Align HR and Finance Teams
Ensure payroll, budgeting, and performance management stay in sync.
To calculate merit increase you can use below formula:
Annual Raise = Current Salary × Merit Increase Percentage
This helps you quickly determine how much an employee’s salary will increase.
