1. What is the Salary Increase Formula?

The salary increase formula calculates the new salary after a percentage increase is applied to the original salary. This helps employees and employers understand the impact of raises or cost-of-living adjustments.

2. How Does the Calculator Work?

The calculator uses the salary increase formula:

Where:

• Old Salary — The original salary amount before increase
• Rate — The percentage increase (e.g., 5 for 5%)

Explanation: The formula multiplies the old salary by 1 plus the rate (converted from percentage to decimal) to calculate the new salary.

3. Importance of Salary Calculation

Details: Accurate salary calculations are crucial for financial planning, budgeting, and understanding compensation changes during salary negotiations or annual reviews.

4. Using the Calculator

Tips: Enter the old salary amount (without currency symbol) and the percentage increase rate (without % sign). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How do I calculate a salary decrease?
A: Enter a negative rate value (though the calculator currently restricts to positive values for simplicity).

Q2: Does this account for taxes or deductions?
A: No, this calculates gross salary only. Net pay would require additional calculations for taxes and deductions.

Q3: Can I calculate multiple raises over time?
A: For multiple raises, you would need to apply the formula sequentially for each raise amount.

Q4: How does compounding work with annual raises?
A: Each raise should be calculated on the new base salary, not the original salary, for accurate compounding.

Q5: What's the difference between percentage and flat amount increases?
A: Percentage increases scale with salary while flat amounts add a fixed sum regardless of current salary.