1. What is Percentage Pay Increase?

The percentage pay increase measures how much a salary or wage has grown compared to its previous amount. It's a key metric for understanding compensation changes, evaluating raises, or comparing job offers.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• \( \text{New Pay} \) — Current or proposed salary/wage
• \( \text{Old Pay} \) — Previous salary/wage

Explanation: The formula calculates the difference between new and old pay as a percentage of the old pay amount.

3. Importance of Calculating Pay Increases

Details: Understanding percentage increases helps in salary negotiations, evaluating job offers, assessing annual raises, and financial planning.

4. Using the Calculator

Tips: Enter both old and new pay amounts in the same currency. The calculator works for any currency as it calculates the percentage difference.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good pay increase?
A: Typically 3-5% is standard for annual raises, while 10%+ is considered significant. Job changes often bring 15-30% increases.

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

Q3: Should I include bonuses in pay calculations?
A: For comprehensive analysis, include all compensation. For base salary comparisons, use base pay only.

Q4: What if my pay decreased?
A: The calculator will show a negative percentage, indicating a pay reduction.

Q5: How often should I calculate my pay increase?
A: Annually for raises, or whenever considering job changes or promotions.