1. What is the Percentage Increase Calculator?

The Percentage Increase Calculator for Employee Pay helps determine the percentage change between an employee's old and new salary. This calculation is essential for understanding pay raises, compensation adjustments, and financial planning.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• New Pay — The employee's current or proposed salary
• Old Pay — The employee's previous salary

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

3. Importance of Pay Increase Calculation

Details: Understanding percentage increases helps employees evaluate job offers, negotiate salaries, and assess the real value of raises after accounting for inflation and cost of living changes.

4. Using the Calculator

Tips: Enter both old and new pay amounts in dollars. The calculator will show the percentage increase between the two amounts. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How is this different from percentage difference?
A: Percentage increase specifically measures growth from an original amount, while percentage difference compares two values without directionality.

Q2: What if my pay decreased?
A: The calculator will show a negative percentage, indicating a decrease rather than an increase.

Q3: Should I use gross or net pay?
A: Typically use gross pay (before taxes) for these calculations, as net pay can vary based on individual tax situations.

Q4: How does this relate to inflation?
A: To determine real wage growth, subtract the inflation rate from your percentage increase.

Q5: What's considered a good pay increase?
A: This varies by industry and location, but typically 3-5% is standard for cost-of-living adjustments, while promotions may bring 10-20% increases.