1. What is Salary Hike Percentage?

Definition: This calculator determines the percentage increase in salary from an old salary to a new salary.

Purpose: It helps employees and employers understand the magnitude of salary increases during appraisals, promotions, or job changes.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Hike % — Percentage increase in salary
• New Salary — The updated salary amount
• Old Salary — The original salary amount

Explanation: The difference between new and old salary is divided by the old salary to get the relative increase, then multiplied by 100 to convert to percentage.

3. Importance of Salary Hike Calculation

Details: Understanding salary hike percentage helps in:

• Evaluating job offers and promotions
• Negotiating salaries
• Planning personal finances
• Benchmarking against industry standards

4. Using the Calculator

Tips: Enter both old and new salary amounts in the same currency. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good salary hike percentage?
A: Typically 5-15% is standard for annual raises, while 15-30% or more may be expected for promotions or job changes.

Q2: Can this be used for salary decreases?
A: Yes, the result will be negative if the new salary is lower than the old salary.

Q3: Should I include bonuses in the salary amounts?
A: For pure salary comparison, use base salary. For total compensation comparison, include all guaranteed components.

Q4: How does this differ from cost of living adjustments?
A: COLA is typically based on inflation rates, while salary hikes consider performance, market rates, and other factors.

Q5: What if my salary is paid in different frequencies?
A: Convert both salaries to the same frequency (annual, monthly, etc.) before comparing.