1. What is Salary Increase Percentage?

The salary increase percentage measures how much a salary has grown from its original amount to a new amount. It's a key metric for understanding pay raises, compensation adjustments, and career progression.

2. How Does the Calculator Work?

The calculator uses the salary increase percentage formula:

Where:

• New Salary — The current or proposed salary amount
• Old Salary — The previous salary amount

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

3. Importance of Salary Increase Calculation

Details: Understanding salary increases helps employees evaluate job offers, negotiate raises, and track career growth. For employers, it helps maintain fair compensation practices and budget for payroll increases.

4. Using the Calculator

Tips: Enter both old and new salary amounts in the same currency. The calculator automatically handles the conversion to percentage. Values must be positive numbers.

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%+ may indicate a promotion or significant role change.

Q2: Should I include bonuses in salary calculations?
A: For pure salary comparisons, exclude bonuses. For total compensation comparisons, include all benefits.

Q3: How does this differ from cost of living adjustments?
A: COLA increases maintain purchasing power, while merit increases reflect performance. Both contribute to total salary growth.

Q4: Can the percentage be negative?
A: Yes, if the new salary is lower than the old, it indicates a pay cut rather than an increase.

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