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 compensation changes, whether for individual raises, company-wide adjustments, or comparing job offers.

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 difference between the new and old salary, then shows what percentage that difference represents of the original salary.

3. Importance of Salary Increase Calculation

Details: Understanding salary increases helps in career planning, negotiation, and financial forecasting. It allows employees to assess the real value of raises and employers to maintain competitive compensation structures.

4. Using the Calculator

Tips: Enter both salary amounts in the same currency (without commas or symbols). The old salary should be the amount before the increase, and the new salary should be the amount after the increase.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good salary increase percentage?
A: Typical annual raises range 2-5%. Promotions may bring 10-20%. Exceptional cases may exceed 30%, but context matters (industry, location, role).

Q2: How does this differ from cost-of-living adjustments?
A: COLA matches inflation to maintain purchasing power, while salary increases may represent real growth beyond inflation.

Q3: Should I include bonuses in salary calculations?
A: For comprehensive comparison, calculate separately. Base salary increases differ from variable compensation changes.

Q4: How do I calculate the equivalent of a percentage increase?
A: Multiply old salary by (1 + percentage/100). Example: 5% increase on $50,000 = $50,000 × 1.05 = $52,500.

Q5: What if my salary decreased?
A: The calculator will show a negative percentage, indicating a salary reduction rather than an increase.