1. What is Percentage Salary Increase?

The percentage salary increase measures how much a salary has grown relative to its original amount. It's a key metric for understanding compensation changes, evaluating job offers, or assessing raises.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• New Salary — Current or proposed salary amount
• Old Salary — Previous salary amount

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

3. Importance of Salary Increase Calculation

Details: Understanding percentage increases helps in salary negotiations, career planning, and financial forecasting. It provides a standardized way to compare raises of different magnitudes.

4. Using the Calculator

Tips: Enter both salary amounts in the same currency (we use $ as default but it works with any currency). The old salary must be greater than zero for the calculation to be valid.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good salary increase?
A: Typically, 3-5% is standard for annual raises, 10-20% for promotions, and 20%+ when changing companies, but this varies by industry and location.

Q2: How does this differ from percentage difference?
A: Percentage increase is always relative to the original (old) amount, while percentage difference compares two values symmetrically.

Q3: What if my salary decreased?
A: The calculator will show a negative percentage, indicating a salary reduction rather than an increase.

Q4: Should I use gross or net salary?
A: For most purposes, use gross salary (before taxes) as it's the standard measure for comparisons and negotiations.

Q5: How does this relate to inflation?
A: To determine real wage growth, subtract the inflation rate from your percentage increase (e.g., 5% raise with 2% inflation = 3% real increase).