1. What is Salary Hike Percentage?

The Salary Hike Percentage measures the increase in salary from an old amount to a new amount, expressed as a percentage of the original salary. It helps employees and employers understand the magnitude of salary changes during promotions, annual increments, or job changes.

2. How Does the Calculator Work?

The calculator uses the salary hike percentage formula:

Where:

• New Salary — The increased salary amount
• Old Salary — The original salary amount

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.

3. Importance of Salary Hike Calculation

Details: Calculating salary hike percentage helps in:

• Evaluating job offers and compensation changes
• Negotiating salaries during appraisals
• Comparing salary growth over time
• Financial planning and budgeting

4. Using the Calculator

Tips:

• Enter both salary amounts in the same currency
• Use gross salary (before deductions) for accurate comparisons
• Include all fixed components of compensation
• Values must be positive numbers

5. Frequently Asked Questions (FAQ)

Q1: Should I use gross or net salary for calculations?
A: Typically use gross salary as it provides a consistent basis for comparison before tax and other deductions.

Q2: How does this differ from cost-of-living adjustments?
A: Salary hike percentage measures nominal increase, while cost-of-living adjustments account for inflation. A "real" salary increase would subtract inflation rate from the hike percentage.

Q3: What's considered a good salary hike percentage?
A: This varies by industry and location, but typically 3-5% is standard for annual increments, while 10-30% may be expected when changing jobs or getting promotions.

Q4: Can the hike percentage be negative?
A: Yes, if new salary is lower than old salary, the result will be negative, indicating a salary reduction.

Q5: How should I account for bonuses in this calculation?
A: For consistent comparison, either include bonuses in both salaries or exclude them from both. Mixing approaches can distort the percentage.