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Salary Increase Formula:
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The salary increase percentage measures how much a salary has grown from its current amount to a new amount, expressed as a percentage of the original salary. This calculation helps employees and employers understand the magnitude of salary changes during raises, promotions, or job changes.
The calculator uses the percentage increase formula:
Where:
Explanation: This formula calculates the relative change between two salary amounts, showing what percentage the salary has increased by compared to the original amount.
Details: Calculating salary increase percentage is essential for evaluating job offers, negotiating raises, understanding compensation growth, and making informed career decisions. It provides a standardized way to compare salary changes across different income levels.
Tips: Enter your current salary and new salary in dollars. Both values must be positive numbers. The calculator will display both the percentage increase and the actual dollar amount increase.
Q1: What is considered a good salary increase percentage?
A: Typically, 3-5% is considered a standard annual raise, while 10-20% or more may indicate a promotion or significant career advancement.
Q2: How do I calculate salary increase for hourly wages?
A: Convert hourly wages to annual salaries first (hourly rate × hours per week × 52 weeks), then use the same percentage formula.
Q3: Can this calculator handle salary decreases?
A: Yes, if the new salary is lower than current, the result will show a negative percentage indicating a salary decrease.
Q4: Should I include bonuses in salary calculations?
A: For accurate comparison, use base salary only. Bonuses are variable and should be considered separately from guaranteed compensation.
Q5: How often should I calculate salary increases?
A: Calculate during annual reviews, job changes, or when considering counter-offers to make informed compensation decisions.