1. What is Salary Increase Percentage?

The salary increase percentage measures how much a salary has grown from its original amount to a new amount, expressed as a percentage of the original salary. It's commonly used to evaluate raises, promotions, or job changes.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• New Salary — The current or proposed salary amount
• Old Salary — The previous salary amount

Explanation: The formula calculates the difference between the new and old salary, then shows what percentage that difference is of the original salary.

3. Importance of Salary Increase Calculation

Details: Calculating salary increase percentage helps employees understand their raise in context, compare job offers, and negotiate salaries. For employers, it helps maintain fair compensation practices.

4. Using the Calculator

Tips: Enter both salary amounts in the same currency without commas. The old salary should be the amount before the increase, and the new salary should be the amount after the increase.

5. Frequently Asked Questions (FAQ)

Q1: Should I include bonuses in the salary amounts?
A: For accurate comparison, use base salary amounts only unless specifically calculating bonus percentage changes.

Q2: What's considered a good salary increase percentage?
A: Typical annual raises range 2-5%. Promotions may bring 10-20%. Job changes often yield 15-30% increases.

Q3: How does this differ from cost of living adjustments?
A: COLA increases maintain purchasing power, while salary increases represent real growth in compensation.

Q4: Can the percentage be negative?
A: Yes, if the new salary is lower than the old salary, the result will be a negative percentage (decrease).

Q5: Should I calculate this before or after taxes?
A: Always use gross (pre-tax) salary amounts for these calculations for accurate comparisons.