1. What is a Percentage Change Calculator for Salary?

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

Purpose: It helps employees and employers understand the magnitude of salary changes, whether for raises, new job offers, or compensation analysis.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( New\ Salary \) — Current or proposed salary amount
• \( Old\ Salary \) — Previous salary amount

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 Change Calculation

Details: Understanding percentage changes helps in evaluating job offers, negotiating salaries, and tracking compensation growth over time.

4. Using the Calculator

Tips: Enter both old and new salary amounts in dollars. The old salary must be greater than zero.

5. Frequently Asked Questions (FAQ)

Q1: What does a negative percentage mean?
A: A negative percentage indicates a salary decrease from the old to new amount.

Q2: How do I interpret a 0% change?
A: This means the new salary is exactly the same as the old salary.

Q3: Should I include bonuses in the salary amounts?
A: For total compensation comparison, include all cash compensation. For base salary comparison, use only base amounts.

Q4: What's considered a good percentage increase?
A: Typical raises are 3-5%. Job changes often bring 10-20% increases, but this varies by industry and location.

Q5: Can I use this for hourly wage changes?
A: Yes, you can use it for any compensation comparison by entering annualized amounts.