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Salary Percentage Increase Calculator

Percentage Increase Formula:

\[ \text{Percentage Increase} = \left( \frac{\text{New Salary} - \text{Old Salary}}{\text{Old Salary}} \right) \times 100 \]

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1. What is Salary Percentage Increase?

The salary percentage increase measures how much a salary has grown relative to its original amount. It's a key metric for understanding compensation changes, evaluating raises, and comparing job offers.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

\[ \text{Percentage Increase} = \left( \frac{\text{New Salary} - \text{Old Salary}}{\text{Old Salary}} \right) \times 100 \]

Where:

Explanation: The formula calculates the difference between the new and old salary as a percentage of the old salary.

3. Importance of Calculating Salary Increases

Details: Understanding percentage increases helps in salary negotiations, career planning, and evaluating whether raises keep pace with inflation and cost of living changes.

4. Using the Calculator

Tips: Enter both salary amounts in the same currency (without commas). The old salary should be the amount before any increase.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good salary increase?
A: Typically 3-5% is standard for annual raises, while 10%+ may indicate a promotion or significant role 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: Should I include bonuses in this calculation?
A: For total compensation comparisons, yes. For base salary analysis, no.

Q4: How does inflation affect salary increases?
A: A raise below inflation rate means reduced purchasing power despite higher nominal salary.

Q5: Can this calculate decreases too?
A: Yes, the result will be negative if the new salary is lower than the old salary.

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