1. What is Pay Percentage Increase?

The Pay Percentage Increase measures how much a salary or wage has grown compared to its previous amount. It's expressed as a percentage 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 change, then converts to a percentage.

3. Importance of Calculating Pay Increases

Details: Understanding your pay increase percentage helps with financial planning, comparing job offers, and negotiating salaries. It shows the real value of raises when considering inflation and cost of living changes.

4. Using the Calculator

Tips: Enter both old and new pay amounts in dollars (without commas). The calculator will show both the percentage increase and the actual dollar amount increase.

5. Frequently Asked Questions (FAQ)

Q1: How do I interpret a negative percentage?
A: A negative percentage means your pay decreased rather than increased.

Q2: Should I use gross or net pay?
A: Typically use gross pay (before taxes) for these calculations as net pay can vary based on deductions.

Q3: How does this compare to cost of living increases?
A: Compare your percentage increase to inflation rates to see if your pay is keeping pace with living costs.

Q4: What's considered a good pay increase?
A: Typically 3-5% is standard for annual raises, while promotions may bring 10-20%. Exceptional performance or job changes may yield more.

Q5: Can I use this for hourly wages?
A: Yes, the calculator works for both salary and hourly wage increases.