1. What is a Salary Percentage Increase Calculator?

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

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

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \(\text{Increase}\) — Percentage salary increase
• \(\text{New Salary}\) — Current or proposed salary (GBP)
• \(\text{Old Salary}\) — Previous salary (GBP)

Explanation: The difference between salaries is divided by the original salary and converted to a percentage.

3. Importance of Salary Increase Calculation

Details: Understanding percentage increases helps in salary negotiations, budgeting, and career progression tracking.

4. Using the Calculator

Tips: Enter both salaries in GBP (before tax). The old salary must be greater than 0 for calculation.

5. Frequently Asked Questions (FAQ)

Q1: Should I use gross or net salary?
A: Typically use gross salary (before tax) for standard comparisons.

Q2: What if my salary decreased?
A: The calculator will show a negative percentage, indicating a decrease.

Q3: How does this compare to inflation?
A: Subtract inflation rate from your percentage increase to see real terms change.

Q4: Is this calculator UK-specific?
A: While it uses GBP, the calculation method works for any currency.

Q5: What's considered a good salary increase?
A: Typically 2-5% matches inflation, while promotions may offer 10-20% increases.