1. What is Pay Increase Percentage?

The Pay Increase Percentage measures how much a salary or wage has increased compared to the previous amount. It's a key metric for understanding compensation changes during raises, promotions, or job changes.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• New Pay — The current or proposed salary/wage amount
• Old Pay — The previous salary/wage amount

Explanation: The formula calculates the difference between new and old pay, then shows what percentage that difference is of the original pay.

3. Importance of Pay Increase Calculation

Details: Understanding pay increase percentage helps employees evaluate raise offers, compare job opportunities, and track compensation growth over time. For employers, it helps maintain equitable compensation practices.

4. Using the Calculator

Tips: Enter both old and new pay amounts in the same currency (dollars in this example). The calculator works with any currency as long as both values use the same one.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good pay increase percentage?
A: Typically 3-5% is standard for annual raises, 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 (e.g., 5% to 7% is a 2 percentage point increase but 40% increase).

Q3: Should I include bonuses in this calculation?
A: For base salary comparisons, exclude bonuses. For total compensation comparisons, include all earnings.

Q4: What if my pay decreased?
A: The calculator will show a negative percentage, indicating a pay reduction.

Q5: How often should I calculate my pay increase?
A: Annually for standard raises, or whenever considering a new job offer or promotion.