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:

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

Explanation: The formula calculates the relative change between the old and new pay amounts, expressed as a percentage of the original pay.

3. Importance of Pay Increase Calculation

Details: Understanding pay increase percentage helps employees evaluate job offers, negotiate salaries, and track career progression. For employers, it's essential for budgeting and compensation planning.

4. Using the Calculator

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

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: Should I use gross or net pay for calculations?
A: Gross pay (before taxes) is standard for these calculations as net pay can vary based on individual tax situations.

Q3: How does this differ from cost of living adjustments?
A: COLA increases maintain purchasing power, while pay increases may represent merit-based or promotional raises.

Q4: Can this calculator show pay decreases?
A: Yes, if new pay is lower than old pay, the result will be a negative percentage.

Q5: How should I compare different job offers?
A: Consider both percentage increase and absolute dollar amounts, along with benefits and other compensation factors.