1. What is Percentage Pay Raise?

The percentage pay raise measures how much a salary has increased compared to the original amount. It's a common way to express salary increases, promotions, or cost-of-living adjustments.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• \( \text{New} \) — New salary amount (USD)
• \( \text{Old} \) — Original salary amount (USD)

Explanation: The formula calculates the relative change between the new and old salary amounts, expressed as a percentage of the original salary.

3. Importance of Pay Raise Calculation

Details: Understanding your pay raise percentage helps in financial planning, comparing job offers, and negotiating salaries. It provides a standardized way to evaluate compensation changes regardless of the base salary amount.

4. Using the Calculator

Tips: Enter both old and new salary amounts in USD. The calculator will compute the percentage increase. Both values must be positive numbers.

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 promotions may range from 10-20% or more depending on the role and company.

Q2: How does this differ from percentage points?
A: Percentage increase is relative to the original amount, while percentage points are absolute differences (e.g., 5% to 7% is a 2 percentage point increase but a 40% relative increase).

Q3: Should I include bonuses in the calculation?
A: For base salary comparisons, don't include bonuses. For total compensation comparisons, include all monetary components.

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

Q5: How often should I calculate my pay raise?
A: Annually, or whenever your compensation changes significantly to track your career progression.