1. What is Hike Percentage?

Hike percentage represents the percentage increase in salary from an old salary to a new salary. It's a crucial metric used in salary negotiations, performance reviews, and career planning to quantify salary growth.

2. How Does the Calculator Work?

The calculator uses the hike percentage formula:

Where:

• \( New\ Salary \) — The updated or proposed salary amount
• \( Old\ Salary \) — The original or current salary amount

Explanation: The formula calculates the relative increase as a percentage of the original salary, providing a standardized way to compare salary growth across different income levels.

3. Importance of Hike Percentage Calculation

Details: Calculating hike percentage helps employees understand their salary growth, assists in negotiation strategies, and provides a clear metric for comparing job offers and career progression.

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 hike percentage?
A: Typically, 10-15% is considered standard for annual increments, while 20-30% or more is common when switching companies. Industry standards and individual performance affect this.

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: Should I include bonuses in salary calculations?
A: For accurate comparison, use base salary only. Bonuses and other variable components can be calculated separately.

Q4: How often should I calculate hike percentage?
A: Calculate during annual reviews, job changes, or when considering counter-offers to make informed career decisions.

Q5: Does hike percentage account for inflation?
A: No, this calculates nominal increase. For real salary growth, subtract inflation rate from the calculated hike percentage.