1. What is Percentage Pay Raise Increase?

The percentage pay raise increase measures how much a salary has increased compared to the previous salary. It's a key metric for understanding compensation growth and negotiating future raises.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• \( \text{New Pay} \) — Current or proposed salary
• \( \text{Old Pay} \) — Previous salary

Explanation: The formula calculates the relative difference between the new and old pay as a percentage of the old pay.

3. Importance of Pay Raise Calculation

Details: Understanding your pay raise percentage helps in career planning, salary negotiations, and assessing whether raises keep pace with inflation and cost of living increases.

4. Using the Calculator

Tips: Enter both old and new pay amounts in the same currency. The calculator works with any currency as it calculates the percentage difference.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good pay raise percentage?
A: Typically 3-5% is standard for 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 are absolute differences between percentages.

Q3: Should I include bonuses in this calculation?
A: For base salary comparisons, use base pay only. For total compensation comparisons, include all compensation elements.

Q4: How often should I calculate my pay raise percentage?
A: Annually is typical, but calculate whenever your compensation changes to track your career progression.

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