1. What is Salary Percentage Increase?

The salary percentage increase measures how much a salary has grown relative to its original amount. It's a key metric for understanding pay raises, compensation changes, and financial planning.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• New Salary — Current or proposed salary amount
• Old Salary — Original salary amount

Explanation: The formula calculates the difference between the new and old salary, divides by the old salary to get a ratio, then multiplies by 100 to convert to percentage.

3. Importance of Salary Increase Calculation

Details: Understanding your salary increase percentage helps in evaluating job offers, negotiating raises, comparing compensation changes over time, and financial planning.

4. Using the Calculator

Tips: Enter both old and new salary amounts in dollars. The calculator will show both the dollar amount increase and the percentage increase.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good salary increase percentage?
A: Typically 3-5% is standard for annual raises, while 10%+ is considered strong. Promotions often bring 15-20% increases.

Q2: How does this differ from cost-of-living adjustments?
A: COLA increases maintain purchasing power, while percentage increases represent actual growth in compensation.

Q3: Should I negotiate based on percentage or dollar amount?
A: Both matter - percentage shows relative growth, while dollar amount shows actual impact on your finances.

Q4: How do bonuses factor into percentage increases?
A: For total compensation calculations, include bonuses in both old and new salary amounts.

Q5: What if my salary decreased?
A: The calculator will show a negative percentage, indicating a pay reduction.