1. What is Wage Increase Percentage?

The wage increase percentage measures how much a salary has grown relative to its original amount. It's a key metric for understanding pay raises, inflation adjustments, and career progression in financial terms.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• New Wage — Current or proposed salary amount
• Old Wage — Previous salary amount

Explanation: The formula calculates the relative change between two wage amounts, showing the increase as a percentage of the original wage.

3. Importance of Calculating Wage Increases

Details: Understanding wage increases helps employees evaluate job offers, negotiate salaries, and track career growth. Employers use it to plan compensation strategies and budget for raises.

4. Using the Calculator

Tips: Enter both wage amounts in the same currency. The old wage should be the earlier/lower amount, and the new wage the current/higher amount. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good wage increase percentage?
A: Typical annual raises range 2-5% for cost-of-living adjustments. Promotions may bring 10-20% increases. Exceptional cases may exceed 30%.

Q2: How does this differ from percentage points?
A: Percentage increase is relative to the original amount, while percentage points measure absolute difference between percentages.

Q3: Should I include bonuses in wage calculations?
A: For comprehensive analysis, include regular bonuses. For base salary comparisons, use fixed compensation only.

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

Q5: Can this calculator show pay cuts?
A: Yes, if new wage is lower than old wage, the result will be a negative percentage.