The formula to calculate the Wage Index (WI) is:
\[ \text{WI} = \text{NAWI} + \left( \frac{\text{NAWI} \times \text{CW2}}{100} \right) \]
Where:
The Wage Index (WI) is a measure used to adjust wages to reflect changes in the national average wage index (NAWI) and the average change in wages over a specified period. This index helps to understand wage trends and make necessary adjustments in salaries, benefits, or other wage-related calculations based on historical data. It is particularly useful for economic analyses and policy-making.
Let's assume the following values:
Using the formula to calculate the Wage Index:
\[ \text{WI} = 50000 + \left( \frac{50000 \times 3}{100} \right) = 50000 + 1500 = 51500 \]
The Wage Index is $51,500.
