1. What is Salary Increase?

A salary increase represents the difference between an employee's new salary and their previous salary. It's typically expressed as either a dollar amount or a percentage of the original salary.

2. How Does the Calculator Work?

The calculator uses a simple formula:

Where:

• New Salary — The employee's current or proposed salary
• Old Salary — The employee's previous salary

Explanation: This calculation shows the absolute dollar amount of the salary change, which can be positive (raise) or negative (pay cut).

3. Importance of Calculating Salary Increase

Details: Understanding salary increases helps employees evaluate job offers, negotiate compensation, and track career progression. For employers, it's essential for budgeting and maintaining pay equity.

4. Using the Calculator

Tips: Enter both salary amounts in dollars. The calculator will show the difference between them. For percentage increase, divide the increase by the old salary and multiply by 100.

5. Frequently Asked Questions (FAQ)

Q1: How do I calculate the percentage increase?
A: Use the formula: ((New Salary - Old Salary) / Old Salary) × 100. For example, a $5,000 increase on a $50,000 salary is a 10% raise.

Q2: What's considered a good salary increase?
A: Typical annual raises are 3-5%. Promotions may bring 10-20%. Market adjustments can vary widely based on industry and location.

Q3: Should I consider inflation when evaluating salary increases?
A: Yes. A 3% raise during 5% inflation means reduced purchasing power. Real wage growth accounts for inflation.

Q4: How often should salary increases occur?
A: Most companies review salaries annually, though some roles may have different cycles or merit-based increases.

Q5: Are salary increases negotiable?
A: Often yes. Preparation with market data and performance metrics strengthens negotiation positions.