1. What is Wage Increase Percentage?

The wage increase percentage measures how much a person's wage has grown from an old amount to a new amount, expressed as a percentage of the original wage. It helps employees and employers understand the magnitude of pay changes.

2. How Does the Calculator Work?

The calculator uses the wage increase formula:

Where:

• New Wage — The current or proposed wage amount
• Old Wage — The previous wage amount

Explanation: The formula calculates the difference between the new and old wage, divides by the old wage to get a decimal value, then multiplies by 100 to convert to a percentage.

3. Importance of Wage Increase Calculation

Details: Calculating wage increase percentage helps in salary negotiations, understanding cost-of-living adjustments, comparing job offers, and evaluating compensation changes over time.

4. Using the Calculator

Tips: Enter both wage amounts in the same currency (typically your local currency). The old wage should be your previous salary, and the new wage your current or proposed salary.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good wage increase percentage?
A: Typically 3-5% is standard for cost-of-living adjustments, while 10%+ may indicate a promotion or significant role change.

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: Should I use gross or net pay for this calculation?
A: Typically use gross pay (before taxes) as net pay can vary based on tax situations and deductions.

Q4: What if my wage decreased?
A: The calculator will show a negative percentage, indicating a wage reduction rather than an increase.

Q5: How often should I calculate my wage increase?
A: Annually is common, or whenever you receive a salary adjustment, change jobs, or get promoted.