1. What is Pay Raise Percentage Increase?

The Pay Raise Percentage Increase calculates how much a salary has increased in percentage terms when comparing an old salary to a new salary. It's a common metric used in compensation analysis and personal finance.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• \( \text{New Pay} \) — The new, increased salary amount
• \( \text{Old Pay} \) — The original salary amount before the increase

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

3. Importance of Calculating Pay Raise Percentage

Details: Understanding your pay raise percentage helps in evaluating job offers, negotiating salaries, tracking career progression, and comparing compensation changes over time.

4. Using the Calculator

Tips: Enter both old and new pay amounts in the same currency (e.g., annual salary, monthly salary, or hourly rate). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Should I use gross or net pay for this calculation?
A: Typically, gross pay (before taxes and deductions) is used for pay raise calculations as it represents your actual compensation.

Q2: What's considered a good pay raise percentage?
A: This varies by industry and location, but generally 3-5% is a standard annual increase, while 10%+ is considered significant.

Q3: How does this differ from cost-of-living adjustments?
A: A pay raise is an increase beyond cost-of-living adjustments. To calculate real wage growth, subtract inflation from your percentage increase.

Q4: Can this be used for hourly wage increases?
A: Yes, the calculation works the same whether you're comparing annual salaries, monthly pay, or hourly wages.

Q5: What if my pay decreased?
A: The calculator will show a negative percentage, indicating a pay reduction rather than an increase.