1. What is Salary Hike Percentage?

Salary hike percentage is a measure of the increase in salary from an old amount to a new amount, expressed as a percentage of the original salary. It helps employees understand their salary growth and employers to plan compensation adjustments.

2. How Does the Calculator Work?

The calculator uses the salary hike percentage formula:

Where:

• \( \text{New Salary} \) — The updated or increased salary amount
• \( \text{Old Salary} \) — The original or previous salary amount

Explanation: The formula calculates the relative increase in salary by comparing the difference between new and old salary to the original salary, then converts it to a percentage.

3. Importance of Salary Hike Calculation

Details: Calculating salary hike percentage is essential for financial planning, career progression analysis, negotiation during job changes, and understanding real income growth after accounting for inflation and cost of living adjustments.

4. Using the Calculator

Tips: Enter both old and new salary amounts in the same currency. Ensure values are positive numbers. The calculator will compute the percentage increase (or decrease if new salary is lower).

5. Frequently Asked Questions (FAQ)

Q1: What is considered a good salary hike percentage?
A: Typically, 3-5% is considered standard for annual increments, while 10-20% or more is common when changing jobs. However, this varies by industry, experience, and location.

Q2: Can the calculator show salary decrease?
A: Yes, if the new salary is lower than the old salary, the calculator will show a negative percentage indicating a salary reduction.

Q3: Should I include bonuses in salary calculations?
A: For accurate comparison, use base salary figures. Bonuses and other variable components should be calculated separately as they may not represent permanent increases.

Q4: How does this differ from cost of living adjustment?
A: Salary hike percentage shows total increase, while cost of living adjustment specifically addresses inflation. A real salary increase occurs when the hike percentage exceeds inflation rate.

Q5: Is this calculation applicable for hourly wages?
A: Yes, you can use hourly rates instead of annual salaries. Ensure both old and new rates are in the same time unit (hourly, weekly, monthly, or annually).