1. What is Salary Hike Calculation?

The salary hike calculation determines the percentage increase in salary from an old amount to a new amount. It's commonly used to evaluate salary increments, promotions, or job changes.

2. How Does the Calculator Work?

The calculator uses the salary hike formula:

Where:

• \( \text{New Salary} \) — Current or proposed salary amount
• \( \text{Old Salary} \) — Previous salary amount
• \( \text{% Hike} \) — Percentage increase in salary

Explanation: The formula calculates the relative increase as a percentage of the original salary amount.

3. Importance of Salary Hike Calculation

Details: Understanding salary hike percentages helps in career planning, negotiation strategies, and evaluating job offers against current compensation.

4. Using the Calculator

Tips: Enter both old and new salary amounts in the same currency. Ensure values are positive numbers greater than zero for accurate calculation.

5. Frequently Asked Questions (FAQ)

Q1: What is considered a good salary hike percentage?
A: Typically, 5-15% is standard for annual increments, while 15-30% or more may be expected for promotions or job changes.

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

Q3: Should I include bonuses in the salary calculation?
A: For accurate comparison, use base salary amounts excluding variable components like bonuses and allowances.

Q4: How often should salary hikes be calculated?
A: Typically calculated annually during performance reviews, or when considering job offers and promotions.

Q5: Does inflation affect salary hike calculations?
A: Real salary increase should account for inflation. A hike below inflation rate may actually represent a decrease in purchasing power.