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 employment negotiations, performance reviews, and financial planning.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

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

Explanation: The formula calculates the difference between the new and old salary, divides it by the old salary to get the relative change, then multiplies by 100 to convert to a 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 salary amounts in the same currency (without currency symbols). The calculator works with any currency as long as both values are in the same unit.

5. Frequently Asked Questions (FAQ)

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

Q2: How does this differ from percentage points?
A: Percentage increase is relative to the original amount, while percentage points are absolute differences (e.g., 5% to 7% is a 2 percentage point increase but 40% increase).

Q3: Should I include bonuses in salary calculations?
A: For pure salary comparisons, use base salary. For total compensation comparisons, include bonuses and other benefits.

Q4: How does inflation affect salary increases?
A: A salary increase below inflation rate means reduced purchasing power despite the nominal increase.

Q5: Can I calculate decreases with this formula?
A: Yes, the result will be negative if the new salary is lower than the old salary.