How Do I Calculate a Fair Salary Raise Percentage for 2013 Considering Inflation?

I need urgent help. I am in the stage of preparing the HR budget, and I have been asked to obtain the inflation rate for this year and the forecasted salary raise percentage. I have obtained the information regarding the inflation rate for the current year. Now, how can I calculate or propose the salary raise percentage for 2013? Is there a certain formula?

There is no formula that directly links inflation and increment. The logic is simple: if an employee receives an increment of 15% and the inflation rate is 10%, then the effective increment for the employee is 5%. You can refer to the attached file; it will help you. For any further clarification, feel free to write or discuss.

Regards.

The percentage of the hike you want to give will completely depend on your organization's performance, objectives, and budget.

Thank you.

It is good to hear that your management is so concerned about inflation. First, I need to understand one thing: do you give a flat hike to all your employees, or does the percentage vary?

For any further clarification, feel free to write or discuss.

Regards