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Percentage Increase Formula:
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The salary percentage increase measures how much a salary has grown relative to its original amount. It's a key metric for understanding pay rises, comparing job offers, or evaluating compensation changes over time.
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: Understanding percentage increases helps employees evaluate job offers, negotiate salaries, and track career progression. Employers use it to determine fair raises and compensation adjustments.
Tips: Enter both salaries in GBP (pounds sterling). For accurate results, use gross salaries (before tax) and compare similar compensation packages (including or excluding bonuses consistently).
Q1: Should I use gross or net salary for calculations?
A: Typically use gross salary (before tax) as it provides a consistent basis for comparison, unaffected by individual tax circumstances.
Q2: What's considered a good salary increase?
A: In the UK, average annual pay rises are typically 2-5%. Increases above 10% are generally considered substantial, often reflecting promotions or job changes.
Q3: How does this differ from real terms increase?
A: This calculates nominal increase. For real terms (inflation-adjusted) increase, you'd need to factor in CPI or RPI inflation rates.
Q4: Can I use this for hourly wage calculations?
A: Yes, the same formula works for hourly rates - just ensure you're comparing equivalent time periods (e.g., both per hour or both annualized).
Q5: How should I account for bonuses or benefits?
A: For complete comparison, convert all compensation to annual GBP values before calculating percentage differences.