1. What is Salary Hike Calculation?

The salary hike calculation determines the new salary after applying a percentage increase to the current salary. This is commonly used for salary negotiations, performance reviews, and career planning in Sri Lanka.

2. How Does the Calculator Work?

The calculator uses the salary hike formula:

Where:

• Current Salary — Base salary in Sri Lankan Rupees (LKR)
• Hike Percentage — Percentage increase (e.g., 5 for 5%)

Explanation: The formula calculates the new salary by adding the percentage increase to the original salary.

3. Importance of Salary Hike Calculation

Details: Understanding salary hikes helps employees evaluate job offers, plan finances, and negotiate better compensation packages in the Sri Lankan job market.

4. Using the Calculator

Tips: Enter current salary in LKR and hike percentage. Both values must be positive numbers. The calculator will show the new salary and the exact increase amount.

5. Frequently Asked Questions (FAQ)

Q1: How is salary hike different from bonus?
A: A salary hike is a permanent increase to base salary, while a bonus is a one-time payment that doesn't affect future earnings.

Q2: What is a typical salary hike percentage in Sri Lanka?
A: Typical annual hikes range from 5-15%, depending on industry, performance, and economic conditions.

Q3: Does this calculator account for taxes?
A: No, this shows gross salary before deductions. Take-home pay will be lower after taxes and other deductions.

Q4: Can I use this for salary negotiations?
A: Yes, this helps you calculate different scenarios to prepare for salary discussions with employers.

Q5: How does inflation affect salary hikes?
A: Ideally, salary hikes should at least match inflation to maintain purchasing power. Real wage growth occurs when hikes exceed inflation.