1. What is Percentage Increase?

Percentage increase measures how much a value has grown relative to its original amount. For salaries, it shows the relative growth in earnings between two points in time.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• New Salary — Current or proposed salary amount
• Old Salary — Previous or original salary amount

Explanation: The formula calculates the difference between salaries, divides by the original amount, then converts to a percentage.

3. Importance of Salary Increase Calculation

Details: Understanding percentage increases helps in salary negotiations, career planning, and assessing the real value of raises when considering inflation.

4. Using the Calculator

Tips: Enter both salary amounts in the same currency (e.g., annual or monthly). The old salary should be the earlier amount, and the new salary the current or proposed amount.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good salary increase percentage?
A: Typical annual raises are 3-5%. Promotions may bring 10-20%. Exceptional cases may exceed 30%.

Q2: How does this differ from percentage difference?
A: Percentage increase is always relative to the original amount, while difference compares two values symmetrically.

Q3: Should I use gross or net salary?
A: Gross salary (before taxes) is standard for these calculations as net can vary based on personal circumstances.

Q4: How does inflation affect salary increases?
A: A raise below inflation rate means reduced purchasing power despite higher nominal salary.

Q5: Can this be used for hourly wage increases?
A: Yes, works the same way whether salary is annual, monthly, or hourly.