1. What is Pay Percentage Increase?

The Pay Percentage Increase measures how much a salary or wage has increased compared to the previous amount, expressed as a percentage. It helps employees understand the real value of their raise.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• New Pay — Current or proposed salary/wage
• Old Pay — Previous salary/wage amount

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

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 the same currency. The values should be positive numbers, with the new pay typically higher than the old pay.

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%+ is considered significant. Job changes often bring 15-30% increases.

Q2: Should I include bonuses in these calculations?
A: For base salary comparisons, exclude bonuses. For total compensation comparisons, include all forms of payment.

Q3: How does this differ from cost-of-living adjustments?
A: COLA matches inflation, while pay increases may exceed inflation to represent true raises in purchasing power.

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

Q5: How should I compare pay increases across different jobs?
A: Compare both percentage and absolute dollar amounts, considering benefits, work conditions, and career growth potential.