1. What is Pay Raise Percentage?

The pay raise percentage measures how much a salary has increased compared to the previous salary. It's a key metric for understanding compensation changes and negotiating salaries.

2. How Does the Calculator Work?

The calculator uses the pay raise percentage formula:

Where:

• New Salary — The current or proposed salary amount
• Old Salary — The previous salary amount

Explanation: The formula calculates the difference between the new and old salary, divides by the old salary to get the relative change, then converts to a percentage by multiplying by 100.

3. Importance of Pay Raise Calculation

Details: Understanding your pay raise percentage helps in salary negotiations, career planning, and assessing whether raises keep pace with inflation and cost of living increases.

4. Using the Calculator

Tips: Enter both salary amounts in the same currency (dollars shown as default). The old salary must be greater than zero for the calculation to work.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good pay raise percentage?
A: Typically 3-5% is standard for cost-of-living adjustments, while 10%+ may indicate a promotion or significant role change.

Q2: How does this differ from salary increase amount?
A: The percentage shows relative change, while the amount shows absolute change. Percentage is better for comparing across different salary levels.

Q3: Should I include bonuses in this calculation?
A: For base salary comparisons, no. For total compensation comparisons, you could include bonuses and other compensation.

Q4: What if my salary decreased?
A: The calculator will show a negative percentage, indicating a pay cut rather than a raise.

Q5: How often should I calculate my raise percentage?
A: Annually is typical, but you might calculate after any salary change to understand its impact.