1. What is Salary Hike Percentage?

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, raises, or job changes.

2. How Does the Calculator Work?

The calculator uses the salary hike percentage formula:

Where:

• New Salary — The updated or increased salary amount ($)
• Old Salary — The original or previous salary amount ($)

Explanation: The formula calculates the relative increase by comparing the difference between new and old salary to the original salary amount.

3. Importance of Salary Hike Calculation

Details: Calculating salary hike percentage is essential for evaluating compensation changes, negotiating salaries, understanding raise effectiveness, and making informed career decisions.

4. Using the Calculator

Tips: Enter both old and new salary amounts in dollars. Both values must be positive numbers, with the new salary typically being higher than the old salary for a positive hike percentage.

5. Frequently Asked Questions (FAQ)

Q1: What is considered a good salary hike percentage?
A: A good salary hike typically ranges from 10-20% for promotions or job changes, though this varies by industry, experience level, and geographic location.

Q2: Can the hike percentage be negative?
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 bonuses be included in salary calculations?
A: For accurate comparison, use base salary amounts excluding bonuses unless specifically calculating total compensation changes.

Q4: How often should salary hikes be calculated?
A: Typically calculated annually during performance reviews, but can be calculated whenever there's a change in compensation.

Q5: Does this work for hourly wages as well?
A: Yes, you can use either annual salary amounts or convert hourly rates to equivalent annual figures for comparison.