1. What is Salary Increase Percentage?

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's a key metric for understanding compensation changes.

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 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: Calculating salary increase percentage helps employees understand their compensation growth, assists employers in budgeting, and provides a standardized way to compare raises across different salary levels.

4. Using the Calculator

Tips: Enter both old and new salary amounts in the same currency (without commas). The calculator will show the percentage increase between the two amounts.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good salary increase percentage?
A: Typical annual increases range 2-5% for cost-of-living adjustments, while promotions may bring 10-20% or more. Industry standards vary.

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: Can this show salary decreases?
A: Yes, if the new salary is lower, the result will be a negative percentage, indicating a decrease.

Q4: Should bonuses be included in these calculations?
A: For base salary comparisons, exclude bonuses. For total compensation comparisons, include all elements.

Q5: How does this relate to inflation?
A: To calculate "real" salary increase, subtract the inflation rate from your percentage increase.