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Percentage Increase Formula:
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The salary increase percentage measures how much a salary has grown from its original amount to a new amount, expressed as a percentage of the original salary. It's a key metric for understanding compensation changes.
The calculator uses the percentage increase formula:
Where:
Explanation: The formula calculates the difference between the new and old salary, divides by the old salary to get the relative change, then multiplies by 100 to convert to a percentage.
Details: Calculating salary increase percentage helps employees understand their compensation growth, assists employers in budgeting, and provides a standardized way to compare raises across different salary levels.
Tips: Enter both old and new salary amounts in the same currency. Both values must be positive numbers. The calculator will show the percentage increase (or decrease if the new salary is lower).
Q1: What's considered a good salary increase percentage?
A: Typical annual raises range 2-5%, while promotions may bring 10-20%. The "good" percentage depends on industry, location, and performance.
Q2: How does this differ from percentage points?
A: Percentage increase is relative to the original amount, while percentage points are absolute differences between percentages.
Q3: Can this show salary decreases?
A: Yes, if new salary is lower than old, the result will be a negative percentage indicating a decrease.
Q4: Should I use gross or net salary for calculations?
A: Typically use gross salary (before deductions) for standardized comparisons, as net salary changes may reflect tax law changes rather than actual compensation changes.
Q5: How often should I calculate my salary increase?
A: Calculate after any salary change - annually for standard raises, or whenever you receive a promotion or change jobs.