1. What is Percentage Pay Increase?

The percentage pay increase calculates how much a salary has grown from an old amount to a new amount, expressed as a percentage of the original salary. This helps employees understand their raise in relative terms.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• New Yearly Pay — The current or proposed annual salary
• Old Yearly Pay — The previous annual salary

Explanation: The formula calculates the difference between the new and old salaries, divides by the original salary to get the relative change, then converts to a percentage.

3. Importance of Calculating Pay Increases

Details: Understanding percentage increases helps employees evaluate job offers, negotiate salaries, and track career progression. It provides clearer comparison than absolute dollar amounts.

4. Using the Calculator

Tips: Enter both salaries in the same currency (typically annual amounts). The calculator works for any currency as it calculates percentage change.

5. Frequently Asked Questions (FAQ)

Q1: Should I use gross or net pay?
A: Typically use gross (pre-tax) pay for salary comparisons, as deductions vary by individual circumstances.

Q2: What's considered a good pay increase?
A: Average raises are 3-5%. Promotions may bring 10-20%. Exceptional cases may be higher.

Q3: How does this compare to cost of living increases?
A: Compare your percentage increase to inflation rates. Below inflation means reduced purchasing power.

Q4: Can I use this for hourly wages?
A: Yes, but first convert to equivalent annual amounts for meaningful comparison.

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