1. What is Salary Hike Percentage?

The salary hike percentage measures the increase in salary from current to new salary, expressed as a percentage of the current salary. It helps employees understand their salary growth and employers to standardize raises across different salary levels.

2. How Does the Calculator Work?

The calculator uses the salary hike percentage formula:

Where:

• New Salary — The proposed or new salary amount
• Current Salary — The existing salary amount

Explanation: The formula calculates the difference between new and current salary, divides by the current salary to get the relative increase, then multiplies by 100 to convert to percentage.

3. Importance of Salary Hike Calculation

Details: Understanding salary hike percentage helps in negotiating salaries, comparing job offers, and planning career growth. It provides a standardized way to compare raises across different salary levels.

4. Using the Calculator

Tips: Enter both current and new salary amounts in the same currency and time period (e.g., both annual or both monthly). The calculator works with any currency as long as both values are in the same currency.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good salary hike percentage?
A: Typically, 10-20% is considered good when changing jobs, while annual raises within the same company are often 3-8%. This varies by industry and location.

Q2: Does this work for hourly wages?
A: Yes, as long as both current and new wages are in the same terms (hourly, weekly, monthly, or yearly).

Q3: What if my new salary is lower than current?
A: The calculator will show a negative percentage, indicating a salary reduction.

Q4: Should I include bonuses in salary calculations?
A: For accurate comparison, either include bonuses in both or neither calculation. Be consistent.

Q5: How does this differ from cost of living adjustments?
A: COLA adjustments maintain purchasing power, while salary hikes represent real increases beyond inflation.