1. What is Percentage Wage Increase?

Percentage wage increase measures how much a wage has grown relative to its original amount. It's a key metric for understanding salary growth, raises, and cost-of-living adjustments.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• \( \text{New Wage} \) — Current or proposed wage amount
• \( \text{Old Wage} \) — Previous wage amount

Explanation: The formula calculates the difference between new and old wage, divides by the old wage to get the relative change, then multiplies by 100 to convert to percentage.

3. Importance of Calculating Wage Increases

Details: Understanding wage increases helps employees evaluate raises, compare job offers, and track career progression. Employers use it to analyze compensation trends and budget for salary adjustments.

4. Using the Calculator

Tips: Enter both wage amounts in the same currency (e.g., annual salary, hourly rate). The old wage must be greater than zero for the calculation to work.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good percentage increase?
A: Typical annual raises range 2-5%. Promotions may bring 10-20%. Exceptional cases may be higher.

Q2: How does this differ from percentage points?
A: Percentage increase is relative to the original amount. Percentage points measure absolute difference between percentages.

Q3: Should I use gross or net wages?
A: Typically use gross (pre-tax) wages for comparison, as tax situations vary.

Q4: How to compare wages across different time periods?
A: Adjust for inflation using CPI data to understand real wage growth.

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