1. What is Salary Increase Percentage?

The salary increase percentage measures how much a salary has grown from an old amount to a new amount. It's a key metric for understanding compensation changes, negotiating salaries, and financial planning.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• New Salary — Current or proposed salary amount
• Old Salary — Previous salary amount

Explanation: The formula calculates the relative change between two salary figures, expressed as a percentage of the original amount.

3. Importance of Calculating Salary Increases

Details: Understanding percentage increases helps in salary negotiations, career planning, and comparing job offers. It provides a standardized way to evaluate compensation changes regardless of the actual dollar amounts.

4. Using the Calculator

Tips: Enter both salary amounts in the same currency. The old salary should be your previous compensation, and the new salary your current or proposed compensation.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good salary increase percentage?
A: Typically, 3-5% is standard for annual raises. Promotions might bring 10-20%, while changing jobs could yield 15-30% or more.

Q2: Should I include bonuses in the calculation?
A: For base salary comparisons, exclude bonuses. For total compensation comparisons, include all forms of compensation.

Q3: How does this differ from cost-of-living adjustments?
A: COLA increases maintain purchasing power, while salary increases may represent merit-based or promotional raises beyond inflation.

Q4: What if my salary decreased?
A: The calculator will show a negative percentage, indicating a salary reduction.

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