Did my pay rise keep up with my bills?

Choose matching periods

A pay rise and a bill increase can be compared in money and percentages. Start with earlier and later periods of the same length. Write the dates and currency. Choose gross earnings or net pay and label that choice. Gross shows earnings before amounts taken out; net shows the payment after those amounts. Keep that basis consistent across both periods.

Worked example with made-up figures

Repeating

Fictional sample rent: A$270.97 / week
Telco One: A$11.06 / week
Fictional sample groceries: A$9.65 / week
Streamly: A$3.16 / week

Together A$294.84 a week.

Get your own answer, first one free

Calculate the pay change

Copy both pay totals from matching payslips. Subtract the earlier figure from the later figure for the money increase. Divide that increase by the earlier figure and multiply by 100 for the percentage change. Hours, overtime and bonuses can affect totals independently of a rate increase. Record these beside the calculation so it describes the pay actually shown for each period.

Match the bill basket

List the same services in both periods, with an earlier and later amount for each. Clearly name housing, utilities, subscriptions and other included bills. Convert different intervals to a common period before adding them. An annual charge divided by twelve gives a monthly average. Record the conversion beside the row. Keep a newly added service separate so its effect stays visible.

Example: made-up figures

Imagine monthly net pay rising from 2,000 to 2,100 currency units: an increase of 100, or 5%. A matched monthly bill basket rises from 1,000 to 1,080: an increase of 80, or 8%. Pay grew by more money than this basket, 100 compared with 80. The amount left after these bills rose from 1,000 to 1,020. The bill percentage was larger because it started from a smaller base.

Keep the scope beside the result

Write the included and omitted categories below your total. Food, travel, irregular costs and household changes can produce a different comparison when included. Finish with the pay increase, bill increase, earlier pay minus bills and later pay minus bills. Retain both percentages beside the amounts. When the earlier amount is zero, a percentage increase based on it is undefined, while the money difference can still be shown.

Keep a record of your check

Write the document dates and page numbers beside your notes. Trace each copied amount back to its original row, then repeat the addition and subtraction once. Keep estimates visibly labelled and retain the original units. This leaves a clear record of which numbers came from documents and which came from your calculation, so another person can follow the same steps with the same papers.