1. What is Percentage Pay Increase?

The percentage pay increase measures how much an employee's salary has grown compared to their previous salary. It's a key metric for evaluating raises, promotions, or job changes.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

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

Explanation: The formula calculates the difference between new and old pay, divides by the original amount, then converts to a percentage.

3. Importance of Pay Increase Calculation

Details: Understanding pay increases helps employees evaluate job offers, negotiate salaries, and track career progression. Employers use it to standardize raises across departments.

4. Using the Calculator

Tips: Enter both old and new pay amounts in the same currency (e.g., annual salary, hourly rate). The calculator works for any pay frequency (hourly, weekly, monthly, annually).

5. Frequently Asked Questions (FAQ)

Q1: Should I include bonuses in the calculation?
A: For total compensation comparisons, yes. For base salary comparisons, no. Be consistent in what you include in both old and new pay amounts.

Q2: What's considered a good pay increase?
A: Typically 3-5% for cost-of-living adjustments, 10-20% for promotions, and 20%+ for job changes, but varies by industry and location.

Q3: How does this differ from percentage points?
A: Percentage increase is relative to original amount (e.g., $50K→$55K is 10%). Percentage points are absolute differences between percentages.

Q4: Can this calculate pay decreases?
A: Yes, the result will be negative if new pay is less than old pay.

Q5: Should I use gross or net pay?
A: Typically use gross pay (before taxes) for standard comparisons, as deductions vary by individual circumstances.