1. What is Pay Percentage Increase?

The pay percentage increase measures how much a salary or wage has grown relative to its original 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 difference between new and old pay as a percentage of the original pay amount.

3. Importance of Pay Increase Calculation

Details: Understanding pay increases helps in salary negotiations, evaluating job offers, and assessing whether raises keep pace with inflation and cost of living changes.

4. Using the Calculator

Tips: Enter both old and new pay amounts in the same currency. The calculator works with any currency as long as both values use the same unit.

5. Frequently Asked Questions (FAQ)

Q1: Should I use gross or net pay?
A: Typically use gross pay (before taxes) for comparison, as net pay can vary based on deductions and tax changes.

Q2: How does this differ from cost of living adjustments?
A: This shows nominal increase. To assess real increase, you'd need to subtract inflation from the percentage.

Q3: What's considered a good pay increase?
A: Varies by industry and location, but typically 3-5% is standard annual raise, 10%+ for promotions or job changes.

Q4: Can I calculate decrease with this formula?
A: Yes, the result will be negative if new pay is lower than old pay.

Q5: How should I compare different pay frequencies?
A: Convert all amounts to the same time period (e.g., annualize weekly pay by multiplying by 52) before comparing.