1. What is Salary Increment Percentage?

The salary increment percentage measures the increase in compensation from current salary to new salary, expressed as a percentage of the current salary. It helps employees understand the relative value of their raise.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• New Salary — The proposed or offered new salary amount
• Current Salary — The present salary amount before increment

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

3. Importance of Salary Increment Calculation

Details: Understanding your salary increment percentage helps in financial planning, evaluating job offers, and negotiating compensation during performance reviews or job changes.

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 with new salary greater than current salary for a positive increment.

5. Frequently Asked Questions (FAQ)

Q1: What is considered a good salary increment percentage?
A: Typically 3-5% is standard for annual raises, while 10-20% or more may be expected when changing jobs or receiving promotions.

Q2: Should I include bonuses in the salary calculation?
A: For consistent comparison, use base salary only unless the bonus is guaranteed and consistent year-to-year.

Q3: How does this differ from cost of living adjustments?
A: COLA adjustments maintain purchasing power, while salary increments represent real increases in compensation beyond inflation.

Q4: What if my increment percentage is negative?
A: A negative result means your new salary is lower than current salary, which should be carefully evaluated before accepting.

Q5: How often should I calculate my salary increment?
A: Typically calculated during annual reviews, job changes, or when considering counteroffers.