1. What is Salary Hike Percentage?

The salary hike percentage measures the increase in salary from current to new salary, expressed as a percentage of the current salary. It helps employees and employers quantify salary changes during promotions, raises, or job changes.

2. How Does the Calculator Work?

The calculator uses the salary hike percentage formula:

Where:

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

Details: Calculating salary hike percentage helps in comparing job offers, negotiating salaries, understanding compensation growth, and making career decisions.

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). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's 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 the situation.

Q2: How does this differ from percentage increase?
A: It's the same calculation - salary hike percentage is just the specific term used for salary increases.

Q3: Should bonuses be included in this calculation?
A: For accurate comparison, include all compensation components or compare base-to-base and bonus-to-bonus separately.

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

Q5: How should I account for different pay frequencies?
A: Convert both salaries to the same time period (e.g., annualize monthly salaries by multiplying by 12) before comparing.