1. What is Pay Increase Percentage?

The Pay Increase Percentage measures how much a salary or wage has increased compared to the previous amount. It's expressed as a percentage of the original pay and helps employees understand the value of raises or promotions.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• New Pay — The current or proposed salary/wage amount
• Old Pay — The previous salary/wage amount

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

3. Importance of Pay Increase Calculation

Details: Understanding pay increases helps employees evaluate job offers, negotiate salaries, and assess whether raises keep pace with inflation and cost of living changes.

4. Using the Calculator

Tips: Enter both old and new pay amounts in the same currency (e.g., annual salary, hourly wage). Values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good pay increase percentage?
A: Typically 3-5% is standard for annual raises, while promotions may offer 10-20%. Increases below inflation rates represent a real pay cut.

Q2: How does this differ from percentage difference?
A: Percentage increase is always relative to the original (old) amount, while percentage difference compares two values symmetrically.

Q3: Should I include bonuses in pay calculations?
A: For comprehensive analysis, include all compensation. For base salary comparisons, use only the fixed amounts.

Q4: How often should I calculate my pay increase?
A: Annually at minimum, or whenever your compensation changes (raises, promotions, job changes).

Q5: What if my pay decreased?
A: The calculator will show a negative percentage, indicating a pay reduction rather than increase.