## Pay Raise Per Hour?

When an employer says they are giving an employee a “$3 raise per hour”, they mean that the employee’s hourly wage will be increased by $3. So, for every hour the employee works, they will earn an additional $3 than what they were earning before.

Example:

If an employee was originally earning $10 per hour and they received a $3 raise, their new hourly wage would be $13 per hour.

Breaking It Down Over Time:

Let’s see the cumulative effect of this raise over different periods:

Hourly:

Old wage: $10

New wage after $3 raise: $13

Daily (assuming an 8-hour workday):

Old wage: $10 × 8 = $80

New wage after $3 raise: $13 × 8 = $104

Difference: $104 – $80 = $24 more per day

Weekly (assuming a 5-day workweek):

Old wage: $80 × 5 = $400

New wage after $3 raise: $104 × 5 = $520

Difference: $520 – $400 = $120 more per week

Monthly (assuming about 4 weeks in a month):

Old wage: $400 × 4 = $1,600

New wage after $3 raise: $520 × 4 = $2,080

Difference: $2,080 – $1,600 = $480 more per month

Yearly (assuming 12 months in a year):

Old wage: $1,600 × 12 = $19,200

New wage after $3 raise: $2,080 × 12 = $24,960

Difference: $24,960 – $19,200 = $5,760 more per year

From the above breakdown, you can see that a seemingly small raise of $3 per hour can lead to a significant increase in an employee’s take-home pay over the course of a year.

However, it’s essential to remember that these calculations are simplistic and don’t take into account taxes, benefits, overtime, and other potential factors that might affect an individual’s net income.

Check out **Salary inflation calculator**