1. What is Percentage Salary Increase?

The percentage salary increase measures how much a salary has grown relative to its original amount. It's a key metric for understanding compensation changes during raises, promotions, or job changes.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• \( \text{New Salary} \) — The increased salary amount
• \( \text{Current Salary} \) — The original salary amount

Explanation: The formula calculates the difference between new and current salary, divides by the current salary to get the relative change, then converts to percentage by multiplying by 100.

3. Importance of Salary Increase Calculation

Details: Calculating percentage increases helps in evaluating job offers, understanding compensation growth, and comparing salary adjustments across different income levels.

4. Using the Calculator

Tips: Enter both current and new salary amounts in the same currency and time period (e.g., annual salary). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Should I use gross or net salary for this calculation?
A: Typically use gross salary (before taxes) for standard comparisons, as net salary can vary based on individual tax situations.

Q2: What's considered a good salary increase percentage?
A: Standard raises are typically 3-5%, promotions 10-20%, and job changes can range higher, but this varies by industry and location.

Q3: How does this differ from percentage point increase?
A: Percentage increase is relative to the original amount, while percentage points refer to absolute differences between percentages.

Q4: Can this be used for hourly wages?
A: Yes, as long as both wages are for the same time period (e.g., both hourly or both annualized).

Q5: What if my salary decreased?
A: The calculator will show a negative percentage, indicating a salary reduction.