1. What is Wage Increase Percentage?

The wage increase percentage measures how much a salary or wage has grown compared to its previous amount. It's a key metric for understanding pay raises, cost of living adjustments, and compensation changes over time.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• \( \text{New Wage} \) — Current or proposed wage amount
• \( \text{Old Wage} \) — Previous wage amount

Explanation: The formula calculates the difference between new and old wage as a proportion of the original wage, then converts it to a percentage.

3. Importance of Wage Increase Calculation

Details: Calculating wage increases helps employees understand their compensation growth, assists employers in budgeting, and provides data for negotiations and financial planning.

4. Using the Calculator

Tips: Enter both wage amounts in the same currency. The old wage should be the original amount, and the new wage should be the increased 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 or competitive adjustments might be 10-20% or more.

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

Q3: Can this calculator show pay cuts?
A: Yes, if the new wage is lower than the old wage, the result will be a negative percentage (decrease).

Q4: Should I use gross or net wages?
A: Typically use gross wages (before taxes) for consistent comparisons, unless specifically analyzing take-home pay changes.

Q5: How often should I calculate my wage increase?
A: Annually after raises, or whenever your compensation changes significantly to track your earnings growth over time.