1. What is Salary Hike Percentage?

Salary hike percentage is a financial metric that calculates the percentage increase in salary from an old salary to a new salary. It helps employees and employers understand the magnitude of salary increments during appraisals, job changes, or promotions.

2. How Does the Calculator Work?

The calculator uses the salary 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 way to compare salary increments across different income levels.

3. Importance of Salary Hike Calculation

Details: Calculating salary hike percentage is essential for career planning, negotiation during job offers, performance evaluation discussions, and understanding real income growth after accounting for inflation and cost of living adjustments.

4. Using the Calculator

Tips: Enter both old and new salary amounts in the same currency. Ensure old salary is greater than zero. The calculator will display the percentage increase (positive for raises) or decrease (negative for pay cuts).

5. Frequently Asked Questions (FAQ)

Q1: What is considered a good salary hike percentage?
A: A good hike typically ranges from 8-15% for annual appraisals, while job changes may offer 20-30% or more. Industry standards and individual performance influence expectations.

Q2: Can the calculator handle salary decreases?
A: Yes, if the new salary is lower than the old salary, the calculator will show a negative percentage indicating a pay cut.

Q3: Should I include bonuses in salary calculations?
A: For accurate comparison, use base salary figures. Including variable components like bonuses may distort the true salary hike percentage.

Q4: How does this differ from compound annual growth rate (CAGR)?
A: Hike percentage calculates simple percentage change, while CAGR calculates average annual growth over multiple periods with compounding effect.

Q5: Is the result affected by currency type?
A: No, as long as both salaries are in the same currency, the percentage calculation remains accurate regardless of currency type.