1. What is Percentage Salary Increase?

The percentage salary increase measures how much a salary has grown relative to its original amount. It's a common metric used in compensation analysis, job negotiations, and financial planning.

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 or original 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 Salary Increase Calculation

Details: Understanding percentage increases helps employees evaluate job offers, assess raises, and compare compensation changes over time. For employers, it's essential for budgeting and compensation strategy.

4. Using the Calculator

Tips: Enter both salary amounts in the same currency (dollars in this example). The old salary must be greater than zero for the calculation to work.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good salary increase percentage?
A: Typical annual raises range 2-5%. Promotions might bring 10-20%. Job changes often yield 15-30% increases.

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

Q3: Should I include bonuses in salary calculations?
A: For total compensation comparisons, yes. For base salary analysis, no. Be consistent in your comparisons.

Q4: How do I calculate decreases?
A: The same formula works - the result will be negative if the new salary is lower than the old.

Q5: What about inflation adjustments?
A: For "real" salary changes, adjust the old salary for inflation before calculating the percentage increase.