1. What is Salary Increase Percentage?

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.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• New Salary — The current or proposed salary amount
• Old Salary — The original salary amount before increase

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

3. Importance of Salary Increase Calculation

Details: Understanding salary increase percentage helps employees evaluate raises, compare job offers, and negotiate compensation. Employers use it to standardize raises across different salary levels.

4. Using the Calculator

Tips: Enter both old and new salary amounts in the same currency. The calculator works with any currency as long as both values are in the same unit.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good salary increase percentage?
A: Typically 3-5% is standard for annual raises, while 10%+ indicates significant promotion or job change.

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

Q4: Should I include bonuses in this calculation?
A: For base salary comparisons, exclude bonuses. For total compensation comparisons, include all earnings.

Q5: How does this relate to inflation?
A: Compare your percentage increase to inflation rates to determine if your purchasing power has increased.