Ready for analysis
Enter your workforce inputs below, then submit to see the living wage gap above the form.
Calculator inputs
Plotly graph
This chart compares current pay, projected pay, and required annual pay per employee.
Example data table
| Employee group | Current hourly wage | Living wage | Headcount | Current annual pay | Required annual pay | Workforce gap |
|---|---|---|---|---|---|---|
| Warehouse Associates | $14.25 | $17.75 | 24 | $31,380.00 | $36,920.00 | $132,960.00 |
| Customer Support Specialists | $16.10 | $18.40 | 12 | $34,113.60 | $36,358.40 | $26,937.60 |
| Facilities Coordinators | $18.50 | $19.20 | 6 | $40,430.00 | $39,936.00 | $0.00 |
These rows show how the same method can compare compensation gaps across different employee groups.
Formula used
Current Hourly Wage × Weekly Hours × Paid Weeks + Monthly Allowance × 12 + Annual Bonus
Living Wage × (1 + Buffer Percent) × Weekly Hours × Paid Weeks
Maximum of (Required Annual Pay − Current Annual Pay) and 0
Current Annual Pay ÷ Required Annual Pay × 100
Annual Gap Per Employee × Headcount
How to use this tool
- Enter the current hourly wage for the selected employee group.
- Input the living wage benchmark you want to test.
- Add weekly hours, paid weeks, and total headcount.
- Include monthly allowances and annual bonuses if paid regularly.
- Set a buffer percent for a more conservative target.
- Add any planned hourly increase to test future pay scenarios.
- Submit the form and review the gap, coverage, and uplift values.
- Use the chart and downloads to share results with stakeholders.
Frequently asked questions
1. What does this tool measure?
It measures the difference between current annualized pay and a living wage target. It also estimates per-employee shortfalls, workforce exposure, coverage ratios, and the impact of a planned pay increase.
2. Why does the tool annualize compensation?
Annualizing makes hourly wages, allowances, and bonuses comparable. It creates one consistent pay figure, which helps HR teams assess whether compensation meets a chosen living wage benchmark.
3. What is the target buffer percent?
The buffer raises the benchmark above the basic living wage. Teams use it to build a safer compensation floor when they expect inflation, regional price changes, or benefit variability.
4. Should allowances and bonuses be included?
Include them when they are regular, dependable, and broadly available to the employee group. Excluding unstable payments may provide a more conservative and easier-to-defend gap estimate.
5. Can I use this for one employee role only?
Yes. Set headcount to one for a single-role review. Increase headcount when you want to estimate the total budget effect across a team, department, or location.
6. What does coverage ratio mean?
Coverage ratio shows how much of the required annual pay is already covered by current compensation. A value above 100% means current pay meets or exceeds the selected target.
7. Why is there a projected scenario?
The projected scenario helps you test a proposed hourly increase before changing compensation. It shows whether the plan fully closes the gap or still leaves a remaining shortfall.
8. Is this a legal compliance calculator?
No. It is a workforce planning tool. Legal requirements vary by country, state, contract, and benefit design, so use local legal guidance for compliance decisions.