1. What is a Salary Increase Percentage Calculator?

Definition: This calculator determines the percentage increase between an old salary and a new salary.

Purpose: It helps employees and employers understand salary changes in percentage terms, making comparisons easier.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• New Salary — The current or proposed salary amount
• Old Salary — The previous salary amount
• Increase — Percentage change between the two salaries

Explanation: The difference between new and old salary is divided by the old salary to get the relative change, then multiplied by 100 to convert to percentage.

3. Importance of Salary Increase Calculation

Details: Understanding salary changes in percentage terms helps in:

• Evaluating job offers and promotions
• Comparing salary adjustments across different pay levels
• Budgeting and financial planning
• Negotiating compensation packages

4. Using the Calculator

Tips: Enter both salary amounts in the same currency. The calculator works with any currency as it calculates percentage change.

5. Frequently Asked Questions (FAQ)

Q1: What does a negative result mean?
A: A negative percentage indicates a salary decrease rather than an increase.

Q2: Should I use gross or net salary?
A: Typically gross salary is used for these calculations, but you can use either as long as you're consistent.

Q3: How accurate is this calculation?
A: The calculation is mathematically precise for the numbers you input.

Q4: Can I compare salaries from different time periods?
A: For accurate comparisons over time, you should adjust for inflation using a separate calculator.

Q5: What's considered a good salary increase percentage?
A: This varies by industry, location, and individual circumstances. Typical annual raises range from 2-5%, while promotions may bring 10-20% increases.