1. What Is Salary Hike Percentage?

Salary hike percentage measures the increase in salary from an old amount to a new amount, expressed as a percentage of the original salary. It helps employees and employers understand compensation changes.

2. How Does The Calculator Work?

The calculator uses the salary hike percentage formula:

Where:

• \( New \) — New salary amount
• \( Old \) — Old salary amount

Explanation: The formula calculates the difference between new and old salary, divides by the old salary to get the relative increase, then multiplies by 100 to convert to percentage.

3. Importance Of Salary Hike Calculation

Details: Calculating salary hike percentage is essential for salary negotiations, performance reviews, career planning, and understanding real income growth after accounting for inflation.

4. Using The Calculator

Tips: Enter both old and new salary amounts in the same currency. Ensure values are positive numbers. The calculator will automatically compute the percentage increase.

5. Frequently Asked Questions (FAQ)

Q1: What Constitutes A Good Salary Hike?
A: A good salary hike typically ranges from 3-10% annually, depending on industry, performance, inflation rates, and company policies.

Q2: How Is Salary Hike Different From Promotion?
A: Salary hike refers to any increase in pay, while a promotion usually involves both salary increase and change in job role/responsibilities.

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 This Calculation?
A: For accurate comparison, use base salaries excluding bonuses. Including variable components may distort the true salary increase percentage.

Q5: How Often Should Salary Hikes Occur?
A: Most companies provide annual salary reviews, but frequency can vary by industry, company size, and individual performance.