1. What is Pay Percentage Increase?

The pay percentage increase measures how much a salary or wage has grown compared to its original amount. It's expressed as a percentage of the original pay and helps employees understand the real value of their raise.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• \( \text{New Pay} \) — Current or proposed salary/wage
• \( \text{Old Pay} \) — Previous salary/wage amount

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

3. Importance of Pay Increase Calculation

Details: Understanding your pay increase percentage helps in financial planning, comparing job offers, and negotiating salaries. It provides a clearer picture than just looking at the dollar amount.

4. Using the Calculator

Tips: Enter both old and new pay amounts in dollars. The calculator will show both the percentage increase and the actual dollar amount increase. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Should I include bonuses in these calculations?
A: For base salary comparisons, don't include bonuses. For total compensation comparisons, include all earnings.

Q2: What's considered a good pay increase?
A: Typically 3-5% is standard for cost-of-living adjustments, while 10%+ may indicate a promotion or significant raise.

Q3: How does this differ from percentage points?
A: Percentage increase is relative to your original salary, while percentage points refer to absolute differences between percentages.

Q4: Should I calculate this before or after taxes?
A: Always use gross (pre-tax) pay amounts for these calculations to get the most accurate comparison.

Q5: How can I use this in salary negotiations?
A: Knowing your current percentage increase helps you evaluate whether a new offer represents a meaningful improvement.