1. What is Salary Increase Percentage?

The Salary Increase Percentage measures how much a salary has grown from its original amount to a new amount, expressed as a percentage of the original salary. It's a key metric for understanding compensation changes.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• New Salary — The current or proposed salary amount
• Old Salary — The previous or original salary amount

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.

3. Importance of Salary Increase Calculation

Details: Understanding salary increases helps employees evaluate job offers, negotiate raises, and track career progression. For employers, it's essential for compensation planning and budgeting.

4. Using the Calculator

Tips: Enter both old and new salary amounts in the same currency. The calculator works with any currency - just ignore the dollar sign if using a different currency.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good salary increase percentage?
A: Typical annual raises range 2-5%. Promotions may bring 10-20%. Exceptional cases may exceed 30%.

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

Q3: Can the result be negative?
A: Yes, if the new salary is lower than the old salary, it indicates a percentage decrease.

Q4: Should bonuses be included in these calculations?
A: For total compensation comparisons, yes. For base salary comparisons, no.

Q5: How does inflation affect salary increases?
A: To calculate "real" increase, subtract the inflation rate from the percentage increase.