1. What is Pay Increase Percentage?

The pay increase percentage measures how much a salary has grown compared to the previous amount. It's a key metric for understanding salary growth, negotiating raises, and comparing job offers in the UK job market.

2. How Does the Calculator Work?

The calculator uses the standard percentage increase formula:

Where:

• New Pay — Current or offered salary amount in GBP
• Old Pay — Previous salary amount in GBP

Explanation: The formula calculates the relative difference between the two salary amounts as a percentage of the original salary.

3. Importance of Pay Increase Calculation

Details: Understanding your pay increase percentage helps in salary negotiations, career planning, and assessing whether a pay rise keeps pace with inflation and living costs in the UK.

4. Using the Calculator

Tips: Enter both salary amounts in GBP (without currency symbols). The old pay should be your previous salary, and new pay your current or offered salary.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good pay increase in the UK?
A: Typically 2-5% maintains purchasing power with inflation. 10%+ is considered excellent, while promotions may bring 15-20%.

Q2: Should I include bonuses in the calculation?
A: For base salary comparison, exclude bonuses. For total compensation comparison, include all financial benefits.

Q3: How does this compare to inflation?
A: Compare your percentage increase to UK inflation rates. A raise below inflation means reduced purchasing power.

Q4: Is this calculation different for hourly wages?
A: The same formula works for hourly rates - just ensure both old and new rates use the same time period (hourly, weekly, etc.).

Q5: How should I present this in salary negotiations?
A: Use the percentage to show how your requested increase compares to market rates, inflation, and your contributions.