1. What is Salary Increase Percentage?

The Salary Increase Percentage calculates the percentage change between an old salary and a new salary. It helps employees and employers understand the magnitude of salary adjustments, promotions, or annual raises.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• \( \text{New} \) — New salary amount (USD)
• \( \text{Old} \) — Old salary amount (USD)
• \( \text{Hike \%} \) — Percentage increase in salary

Explanation: The formula calculates the relative change from the original salary to the new salary, expressed as a percentage.

3. Importance of Salary Increase Calculation

Details: Understanding salary increase percentages is crucial for career planning, negotiation, financial planning, and benchmarking compensation against industry standards.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What is considered a good salary increase percentage?
A: Typically, 3-5% is standard for annual cost-of-living adjustments, while 10-15% or more may indicate promotions or significant role changes.

Q2: How do I calculate salary decrease percentage?
A: The same formula applies - the result will be negative if the new salary is lower than the old salary.

Q3: Should I include bonuses in salary calculations?
A: For accurate comparison, use base salary amounts. Bonuses can be calculated separately as they are often variable.

Q4: What if my salary is paid in different currencies?
A: Convert both amounts to the same currency using current exchange rates before calculating the percentage increase.

Q5: How often should I calculate salary increases?
A: Calculate after each salary change, during annual reviews, or when considering job offers to track career progression.