1. What is Salary Hike Percentage?

The Salary Hike Percentage measures the percentage increase between your current salary and new salary. It helps employees understand their raise and employers to standardize compensation adjustments.

2. How Does the Calculator Work?

The calculator uses the salary hike formula:

Where:

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

Explanation: The formula calculates the relative difference between the two salaries as a percentage of the current salary.

3. Importance of Salary Hike Calculation

Details: Calculating salary hike percentage helps in financial planning, comparing job offers, and understanding compensation growth over time.

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). Values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Should I use gross or net salary for calculations?
A: Typically use gross salary (before deductions) for standard comparisons, but net salary calculations can be useful for personal budgeting.

Q2: What's considered a good salary hike percentage?
A: This varies by industry and location, but 3-5% is typical for annual raises, while 10-30% is common when changing jobs.

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

Q4: Can the percentage be negative?
A: Yes, if the new salary is lower than current, this indicates a pay cut rather than a hike.

Q5: Should bonuses be included in this calculation?
A: For comprehensive comparison, include regular bonuses if they're part of both compensation packages.