1. What is Salary Increase Percentage?

The salary increase percentage measures how much a salary has grown compared to its previous amount. It's a key metric for understanding pay raises, career progression, and maintaining purchasing power against inflation.

2. How Does the Calculator Work?

The calculator uses the standard percentage increase formula:

Where:

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

Explanation: The formula calculates the difference between the new and old salary, divides by the old salary to get the relative change, then converts to a percentage by multiplying by 100.

3. Importance of Salary Increase Calculation

Details: Understanding your salary increase percentage helps in:

• Evaluating job offers and promotions
• Comparing against inflation rates
• Negotiating salaries
• Financial planning and budgeting

4. Using the Calculator

Tips:

• Enter both salaries in GBP (pounds sterling)
• Use gross salary figures (before tax) for accurate comparisons
• Include all regular compensation (base salary + guaranteed bonuses)

5. Frequently Asked Questions (FAQ)

Q1: Should I use gross or net salary for calculations?
A: Always use gross salary (before tax) as net salary can be affected by many personal factors that don't reflect the actual increase.

Q2: How does this compare to UK inflation rates?
A: Compare your percentage increase to the current UK inflation rate (CPI) to determine if your salary maintains purchasing power.

Q3: What's considered a good salary increase in the UK?
A: Typically 2-5% is standard for annual cost-of-living adjustments, while promotions may bring 10-20% or more.

Q4: Should bonuses be included in this calculation?
A: Only include guaranteed, regular bonuses. One-time bonuses should be considered separately.

Q5: How does this work for part-time salaries?
A: Convert to full-time equivalent salaries first for accurate percentage comparisons.