---
title: Pay Rate Increase Employer Calculation Method
description: New Pay Rate Increase calculation method is now live in Budget Benefits Management. Budget fixed or variable hourly pay increases with automatic tax/wage settings and seamless integration into personnel calculations.
---

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August 12, 2026

# Pay Rate Increase Employer Calculation Method

We are excited to share details about the lastest enhancement to **Budget Benefits Management**.

**What’s New**

A new Employer Calculation Method **Pay Rate Increase** is now available. This option allows you to budget for fixed or variable hourly pay rate increases (such as step increases or reclassifications) alongside existing COLA and Merit methods.

 ![](https://support.aclarian.com/hs-fs/hubfs/payrate.png?upscale=true&upscale=true&width=619&height=196&name=payrate.png) 

**Key Features**

- **Auto‑Selected Fields:** When Pay Rate Increase is chosen, *Is Social Security Taxable*, *Is Medicare Taxable*, and *Include in Regular Wages* are automatically enabled and locked to ensure proper treatment in personnel budget calculations.

![](https://support.aclarian.com/hs-fs/hubfs/isselected.png?upscale=true&upscale=true&width=631&height=164&name=isselected.png) 

- **Flexible Sub‑Methods:** You can calculate increases using one of four familiar options: 
    - Fixed Amount
    - Variable Amount
    - Fixed Percentage
    - Variable Percentage

 ![](https://support.aclarian.com/hs-fs/hubfs/subcalculation.png?upscale=true&upscale=true&width=626&height=200&name=subcalculation.png) 

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