1. What is Pay Increase Percentage?

The Pay Increase Percentage measures how much a salary or wage has increased compared to its previous amount. It's expressed as a percentage and helps employees understand the relative value of their raise.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• New Pay — The current or new salary amount
• Old Pay — The previous salary amount

Explanation: The formula calculates the difference between new and old pay, divides by the old pay to get the relative change, then converts to a percentage by multiplying by 100.

3. Importance of Pay Increase Calculation

Details: Understanding pay increases helps employees evaluate job offers, negotiate salaries, and assess whether raises keep pace with inflation and cost of living changes.

4. Using the Calculator

Tips: Enter both pay amounts in the same currency (before taxes). The old pay should be your previous salary, and new pay your current or offered salary.

5. Frequently Asked Questions (FAQ)

Q1: Should I include bonuses in the pay amounts?
A: For consistent comparison, use base salary only unless comparing total compensation packages.

Q2: What's considered a good pay increase?
A: Typically 3-5% is standard for annual raises, but this varies by industry, performance, and inflation rates.

Q3: How does this differ from cost of living adjustments?
A: COLA raises aim to match inflation, while merit raises reflect performance. Both contribute to pay increases.

Q4: Can the percentage be negative?
A: Yes, if new pay is less than old pay, the result will be negative, indicating a pay decrease.

Q5: Should I negotiate based on percentage or absolute amount?
A: Both are important - percentage shows relative value while absolute amount reflects real purchasing power.