1. What is Percentage Increase in Salary?

Percentage increase in salary measures the relative growth from an old salary to a new salary. It helps employees understand the magnitude of their raise in percentage terms rather than just the absolute dollar amount.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• \( \text{New Salary} \) — The current or proposed salary amount ($)
• \( \text{Old Salary} \) — The previous salary amount ($)

Explanation: This formula calculates the relative change between two salary amounts, expressed as a percentage of the original salary.

3. Importance of Calculating Salary Increase

Details: Understanding percentage increases helps employees evaluate job offers, negotiate salaries, and track career progression. It provides a standardized way to compare raises across different salary levels.

4. Using the Calculator

Tips: Enter both old and new salary amounts in dollars. Both values must be positive numbers. The calculator will compute the percentage increase between the two amounts.

5. Frequently Asked Questions (FAQ)

Q1: What is considered a good salary increase percentage?
A: Typically, 3-5% is considered a standard annual raise, while 10-15% or more may indicate a promotion or significant role change.

Q2: How does percentage increase differ from absolute increase?
A: Absolute increase shows the dollar amount difference, while percentage increase shows the relative change, making it easier to compare raises across different salary levels.

Q3: Can the percentage be negative?
A: Yes, if the new salary is lower than the old salary, the percentage will be negative, indicating a salary decrease.

Q4: Should bonuses be included in salary calculations?
A: For accurate percentage comparisons, use base salary amounts rather than total compensation including bonuses, unless comparing total compensation packages.

Q5: How often should I calculate salary increases?
A: It's useful to calculate when considering job changes, during annual reviews, or when comparing multiple job offers.