1. What is Salary Increase Calculation?

The salary increase calculation determines the difference between an employee's new salary and their old salary. It helps both employers and employees understand the monetary value and percentage of a pay raise.

2. How Does the Calculator Work?

The calculator uses the salary increase formula:

And the percentage increase formula:

Explanation: The calculation shows both the absolute monetary increase and the relative percentage increase compared to the original salary.

3. Importance of Salary Increase Calculation

Details: Understanding salary increases helps in financial planning, evaluating job offers, assessing compensation fairness, and making career decisions.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good salary increase?
A: Typical annual raises are 2-5%, but this varies by industry, performance, and inflation. Promotions often bring larger increases (10-20% or more).

Q2: Should I consider other factors besides the salary amount?
A: Yes, also consider benefits, bonuses, work-life balance, career growth opportunities, and job satisfaction.

Q3: How does this differ from cost-of-living adjustments?
A: Cost-of-living adjustments maintain purchasing power, while salary increases typically represent real growth in earnings.

Q4: What if my salary decreased?
A: The calculator will show a negative value, indicating a pay cut rather than an increase.

Q5: How often should salary increases occur?
A: Annual increases are common, but frequency varies by company policy, performance, and market conditions.