1. What is Salary Hike Percentage?

The Salary Hike Percentage measures the percentage increase in salary from current to new salary. It helps employees and employers understand the magnitude of salary changes during promotions, raises, or job changes.

2. How Does the Calculator Work?

The calculator uses the salary hike percentage formula:

Where:

• \( \text{New Salary} \) — The proposed or new salary amount
• \( \text{Current Salary} \) — The existing salary amount

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

3. Importance of Salary Hike Calculation

Details: Calculating salary hike percentage helps in comparing job offers, understanding compensation growth, and making informed career decisions. It's essential for salary negotiations and financial planning.

4. Using the Calculator

Tips: Enter 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: What is considered a good salary hike percentage?
A: Typically, 10-20% is considered good for annual raises, while job changes might warrant 20-30% or more depending on market conditions.

Q2: Should bonuses be included in these calculations?
A: For comprehensive comparison, include all compensation components (base salary, bonuses, stock options) converted to annual equivalents.

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 beyond inflation.

Q4: What if my new salary is lower than current?
A: The calculator will show a negative percentage, indicating a salary reduction.

Q5: Should I compare gross or net salary?
A: For most purposes, gross salary is used as tax implications vary by individual circumstances.