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Salary Increase Formula:
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The Salary Increase Percentage measures how much a salary has grown from its original amount to a new amount, expressed as a percentage of the original salary. It helps employees understand their raise in relative terms.
The calculator uses the percentage increase formula:
Where:
Explanation: The formula calculates the difference between the new and old salary, divides it by the old salary to get a decimal value, then multiplies by 100 to convert to a percentage.
Details: Understanding your salary increase percentage helps you evaluate job offers, negotiate raises, and track your career progression. It provides a standardized way to compare raises of different magnitudes.
Tips: Enter both salary amounts in the same currency (before taxes). The old salary should be your previous salary, and the new salary your current or proposed salary. Both values must be positive numbers.
Q1: What's considered a good salary increase percentage?
A: Typically, 3-5% is a standard annual raise, 10-20% might come with a promotion, and 20%+ usually indicates a significant career move or job change.
Q2: Should I use gross or net salary for this calculation?
A: Always use gross salary (before taxes and deductions) for consistency in comparisons.
Q3: How does this differ from percentage difference?
A: Percentage increase is always relative to the original (old) amount, while percentage difference compares two values without a reference point.
Q4: Can the percentage be negative?
A: Yes, if the new salary is lower than the old salary, the result will be negative, indicating a salary decrease.
Q5: How should I account for bonuses in this calculation?
A: For accurate comparisons, calculate with and without bonuses separately, as bonuses are often variable.