1. What is Salary Increase Calculation?

Salary increase calculation determines the difference between an employee's old and new salary, showing both the absolute amount and percentage increase. This helps employees understand their compensation changes and employers maintain fair salary structures.

2. How Does the Calculator Work?

The calculator uses two simple formulas:

Where:

• New Salary — The updated salary amount
• Old Salary — The previous salary amount

Explanation: The calculator first determines the absolute increase, then calculates what percentage this increase represents relative to the original salary.

3. Importance of Salary Increase Calculation

Details: Understanding salary increases helps with financial planning, evaluating job offers, and ensuring fair compensation. For employers, it's essential for budgeting and maintaining equitable pay structures.

4. Using the Calculator

Tips: Enter both old and new salary amounts in the same currency. The calculator will show the absolute increase amount and the percentage increase.

5. Frequently Asked Questions (FAQ)

Q1: Should I include bonuses in the salary amounts?
A: This calculator is designed for base salary comparison. For total compensation comparisons, you may need to include bonuses and other benefits separately.

Q2: How often should salary increases be calculated?
A: Typically calculated annually during performance reviews, but may be done when changing positions or receiving promotions.

Q3: What's considered a good salary increase percentage?
A: Varies by industry and location, but 3-5% is typical for cost-of-living adjustments, while promotions may bring 10-20% increases.

Q4: Does this calculator account for inflation?
A: No, for real wage growth calculations you would need to adjust for inflation separately.

Q5: Can I use this for hourly wage increases?
A: Yes, but you may want to convert to annual amounts first (hourly rate × hours per week × 52 weeks) for better comparison.