1. What is Percentage Pay Increase?

The percentage pay increase measures how much a salary or wage has grown compared to its original amount. It's a key metric for understanding compensation changes, negotiating salaries, and evaluating raises.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• New Pay — The current or proposed salary/wage amount
• Old Pay — The previous salary/wage amount

Explanation: The formula calculates the difference between new and old pay, then expresses this difference as a percentage of the original pay.

3. Importance of Calculating Pay Increases

Details: Understanding percentage increases helps employees evaluate job offers, negotiate salaries, and track career progression. Employers use it to determine raise structures and compensation adjustments.

4. Using the Calculator

Tips: Enter both old and new pay amounts in the same currency (e.g., annual salary or hourly wage). The calculator works with any currency as long as both values use the same unit.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good pay increase?
A: Typically 3-5% is standard for annual cost-of-living adjustments, while 10%+ may indicate a promotion or significant role change.

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

Q3: Should I use gross or net pay?
A: Gross pay (before taxes) is standard for these calculations as net pay can vary based on individual tax situations.

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

Q5: How often should I calculate my pay increase?
A: Annually is common, but calculate whenever your compensation changes significantly (promotions, job changes, etc.).