1. What is Percentage Pay Increase?

The percentage pay increase measures how much a salary or wage has grown relative to its original amount. 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 Pay — Current or proposed salary/wage amount
• Old Pay — Previous salary/wage amount

Explanation: The formula calculates the difference between new and old pay, divides by the original amount, and converts to a percentage.

3. Importance of Pay Increase Calculation

Details: Understanding percentage increases helps in salary negotiations, evaluating job offers, and tracking career progression over time.

4. Using the Calculator

Tips: Enter both old and new pay amounts in the same currency. The calculator works with any currency as long as both values are in the same unit.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good pay increase percentage?
A: Typically 3-5% is standard for annual raises, while 10%+ may indicate a promotion or significant role change.

Q2: How does this differ from percentage point increase?
A: Percentage increase is relative to the original amount, while percentage points refer to absolute differences between percentages.

Q3: Should I include bonuses in the calculation?
A: For base salary comparisons, exclude bonuses. For total compensation comparisons, include all earnings.

Q4: What if my old pay was zero?
A: The calculation is undefined when old pay is zero, as you can't divide by zero.

Q5: Can this show pay decreases?
A: Yes, the result will be negative if new pay is less than old pay.