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Calculate Percentage Increase On Salary

Percentage Increase Formula:

\[ \text{Percentage Increase} = \left( \frac{\text{New Salary} - \text{Old Salary}}{\text{Old Salary}} \right) \times 100 \]

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1. What is Percentage Increase?

Percentage increase measures how much a value has grown relative to its original amount. In salary terms, it shows the relative growth from your old salary to your new salary.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

\[ \text{Percentage Increase} = \left( \frac{\text{New Salary} - \text{Old Salary}}{\text{Old Salary}} \right) \times 100 \]

Where:

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: Understanding your salary increase percentage helps in financial planning, evaluating job offers, and negotiating compensation.

4. Using the Calculator

Tips: Enter both salary amounts in the same currency. The old salary should be your previous amount, and the new salary your current or proposed amount.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good percentage increase?
A: Typically, 3-5% is standard for annual raises, while 10-20%+ may be expected when changing jobs or getting promotions.

Q2: How does this differ from percentage points?
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 monetary benefits.

Q4: What if my salary decreased?
A: The calculator will show a negative percentage, indicating a decrease rather than an increase.

Q5: Does this account for inflation?
A: No, this is the nominal increase. For real increase, you'd need to adjust for inflation separately.

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