1. What is Percentage Salary Increase?

The percentage salary increase measures how much a salary has grown relative to its original amount. It's a common metric used in compensation analysis, job negotiations, 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 — Previous salary amount

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

3. Importance of Calculating Salary Increase

Details: Understanding percentage increases helps in evaluating job offers, negotiating raises, tracking career progression, and making financial decisions. It provides a standardized way to compare salary changes regardless of the absolute amounts.

4. Using the Calculator

Tips: Enter both salary amounts in the same currency without commas. The old salary should be your previous salary, and the new salary your current or proposed salary.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good percentage increase?
A: Typically 3-5% is a standard annual raise, 10-20% for promotions, and 20%+ for significant career moves or competitive offers.

Q2: How does this differ from percentage points?
A: Percentage increase is relative to the original amount, while percentage points are absolute differences between percentages.

Q3: Should I include bonuses in the calculation?
A: For base salary comparisons, exclude bonuses. For total compensation comparisons, include all forms of compensation.

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

Q5: How often should I calculate my salary increase?
A: Annually for standard raises, or whenever considering a new job offer or promotion opportunity.