Salary and Pension Increases
To demonstrate the formula I've entered the actual values within the formula
but in practice it would be better to use cell addresses for the values:-
To calculate final salary:-
=20000*(1+3%)^5
Where 20000 is todays salary, 3% is the annual adlustment and 5 is the
number of years to work.
To work out total pension contributions put the starting salary in say A1
and in A2 type
=A1*1.03
Drag this down. In B1 type
=A1*0.16 to get the pension contrinbution for that year and drag down and
sum the column.
Mike
Mike
"tartan tim" wrote:
I have a group of employees who are on different salaries and different
percentage contributions from the employer to their pension fund - some 6%
some 18%. I need to project the total cost of each employees pension upto
their retirement age of 65 years. So the formula I need has to include an
annual pay award each year over that time while calculating the pension
contribution as salary rises.
The formula would look something like this:
1. Salary + say 3% pay award each year for say 30 years - Show final Salary
2. Employer pension contribution (of Salary) for same period - Show total
employers pension contributions for that period.
Any help ? Thanks
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