1. What is Salary Percentage Increase?

The salary percentage increase measures how much a salary has grown compared to its previous amount. It's a key metric for understanding compensation growth during promotions, annual raises, or job changes.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• New Salary — Current or proposed salary amount
• Old Salary — Previous salary amount

Explanation: The formula calculates the difference between the new and old salary, divides by the old salary to get the relative change, then multiplies by 100 to convert to a percentage.

3. Importance of Calculating Salary Increases

Details: Understanding salary increases helps in career planning, negotiation, and financial forecasting. It allows comparison of raises across different salary levels and time periods.

4. Using the Calculator

Tips: Enter both salary amounts in the same currency (e.g., annual amounts). The calculator works with any currency as long as both values use the same unit.

5. Frequently Asked Questions (FAQ)

Q1: Should I use gross or net salary for calculations?
A: Typically use gross (pre-tax) salary for comparison purposes, as net salary can vary based on tax situations.

Q2: How do I interpret negative percentage results?
A: A negative result indicates a salary decrease rather than an increase.

Q3: Can I use this for hourly wage increases?
A: Yes, but convert both wages to the same time period (e.g., annualize both amounts for comparison).

Q4: What's considered a good salary increase percentage?
A: Typical annual raises range 2-5%. Promotions may bring 10-20%. Market conditions and individual performance affect this.

Q5: How does this differ from cost of living adjustments?
A: COLA increases maintain purchasing power, while percentage increases may represent real growth beyond inflation.