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 a key metric for understanding compensation changes and negotiating salaries.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

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

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

3. Importance of Pay Increase Calculation

Details: Understanding pay increase percentage helps employees evaluate job offers, negotiate salaries, and track career progression. Employers use it to determine raises and compensation adjustments.

4. Using the Calculator

Tips: Enter both pay amounts in the same currency (e.g., annual salary or hourly wage). The calculator works with any currency as long as both values use the same unit.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good pay increase percentage?
A: Typically 3-5% is standard for cost-of-living adjustments, while 10%+ may indicate a promotion or significant role change.

Q2: How does this differ from percentage points?
A: Percentage increase is relative to the original amount, while percentage points are absolute differences (e.g., 5% to 7% is a 2 percentage point increase but 40% increase).

Q3: Should I use gross or net pay for calculations?
A: Typically use gross pay (before taxes) as net pay can vary based on deductions and tax changes.

Q4: What if my pay decreased?
A: The calculator will show a negative percentage, indicating a pay reduction.

Q5: Can I compare different pay periods?
A: Yes, but convert to equivalent periods first (e.g., compare annual to annual or hourly to hourly).