1. What is Wage Increase Percentage?

The wage increase percentage measures how much a person's wage has grown compared to their previous wage. It's expressed as a percentage of the original wage and helps compare wage growth across different income levels.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• New Wage — Current or proposed wage amount
• Old Wage — Previous wage amount

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

3. Importance of Wage Increase Calculation

Details: Calculating wage increase percentage helps employees understand their raise in context, allows comparison across different salary levels, and helps employers standardize raise percentages across their workforce.

4. Using the Calculator

Tips: Enter both wage amounts in the same currency. The old wage should be your previous wage, and the new wage your current or proposed wage. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good wage increase percentage?
A: Typical annual raises range 2-5%, but this varies by industry, location, and performance. Promotions often come with higher percentages.

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: What if my wage decreased?
A: The calculator will show a negative percentage, indicating a wage decrease rather than increase.

Q4: Should I use gross or net wages?
A: Typically use gross wages (before taxes) for consistent comparisons, as net wages can vary based on personal tax situations.

Q5: How does this relate to inflation?
A: To determine real wage growth, you'd need to adjust for inflation. A 3% raise with 2% inflation means ~1% real wage increase.