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Percentage Increase Formula:
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The hourly wage percentage increase measures how much a wage has grown from its original amount to a new amount, expressed as a percentage of the original wage. It helps employees and employers understand the magnitude of wage changes.
The calculator uses the percentage increase formula:
Where:
Explanation: The formula calculates the difference between the two wages, divides by the original wage to get the relative change, then converts to a percentage by multiplying by 100.
Details: Understanding wage increases helps in salary negotiations, budgeting, and assessing the real value of raises when considering inflation or cost of living adjustments.
Tips: Enter both wages in dollars per hour ($/hour). The original wage should be the earlier, lower amount, and the new wage should be the current or proposed higher amount.
Q1: What's considered a good percentage increase?
A: Typically, 3-5% is a standard annual raise, while 10%+ is considered significant. However, this varies by industry and location.
Q2: How does this differ from percentage point increase?
A: Percentage increase is relative to the original amount, while percentage points refer to absolute difference (e.g., 5% to 7% is a 2 percentage point increase but 40% increase).
Q3: Should I include bonuses in this calculation?
A: This calculator is for base hourly wages only. For total compensation comparisons, you'd need to account for all benefits.
Q4: What if my wage decreased?
A: The calculator will show a negative percentage, indicating a decrease rather than an increase.
Q5: How does inflation affect wage increases?
A: To calculate "real" wage increase, subtract the inflation rate from your percentage increase (e.g., 5% raise with 2% inflation = 3% real increase).