1. What is Hike Percentage?

Hike percentage represents the percentage increase in salary from an old salary to a new salary. It is commonly used in employment contexts to measure salary increments, promotions, or job changes.

2. How Does the Calculator Work?

The calculator uses the hike percentage formula:

Where:

• \( \text{New Salary} \) — The updated or increased salary amount
• \( \text{Old Salary} \) — The original or previous salary amount

Explanation: The formula calculates the relative increase as a percentage of the original salary, providing a standardized measure for salary growth.

3. Importance of Salary Increase Calculation

Details: Calculating hike percentage helps employees understand their salary growth, negotiate better compensation, and make informed career decisions. Employers use it for salary structuring and budget planning.

4. Using the Calculator

Tips: Enter both old and new salary amounts in the same currency. Ensure values are positive numbers. The calculator will automatically compute the percentage increase.

5. Frequently Asked Questions (FAQ)

Q1: What is considered a good salary hike percentage?
A: A good hike typically ranges from 10-20% for internal promotions and 15-30% for job changes, though this varies by industry and location.

Q2: Can hike percentage be negative?
A: Yes, if the new salary is lower than the old salary, the hike percentage will be negative, indicating a salary decrease.

Q3: How does hike percentage differ from absolute increase?
A: Absolute increase shows the actual amount difference, while hike percentage shows the relative change, making it easier to compare across different salary levels.

Q4: Should bonuses be included in salary calculations?
A: For accurate comparison, use base salary figures. Bonuses and other variable components should be considered separately.

Q5: How often should salary hikes be calculated?
A: Typically calculated annually during performance reviews, but also when changing jobs or receiving promotions.