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Percentage Salary Hike Formula:
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Percentage Salary Hike (PSH) is a calculation that shows the percentage increase in salary from an old amount to a new amount. It's commonly used during salary negotiations, job changes, or annual reviews to quantify salary growth.
The calculator uses the percentage salary hike formula:
Where:
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.
Details: Calculating percentage salary hike helps employees understand their compensation growth, make informed career decisions, and negotiate better offers. It also helps employers structure competitive compensation packages.
Tips: Enter both old and new salary amounts in dollars. Ensure both values are positive numbers. The calculator will automatically compute the percentage increase.
Q1: What is considered a good salary hike?
A: A good salary hike typically ranges from 10-20% for internal promotions and 15-30% for job changes, though this varies by industry and location.
Q2: How often should salary hikes occur?
A: Most companies provide annual salary reviews, but hikes can occur with promotions, exceptional performance, or when changing jobs.
Q3: Does this calculation account for bonuses and benefits?
A: No, this calculation only considers base salary. For total compensation comparison, include bonuses, stock options, and benefits in your assessment.
Q4: What if my salary decreased?
A: The calculator will show a negative percentage, indicating a salary reduction rather than an increase.
Q5: Should I consider inflation when evaluating salary hikes?
A: Yes, for a true assessment of purchasing power, compare your salary hike percentage with the current inflation rate.