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 and employers understand the magnitude of salary increments during appraisals, job changes, or promotions.

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
• \( \text{Hike %} \) — The percentage increase in salary

Explanation: This 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 career planning, negotiation during job offers, performance evaluations, and understanding compensation growth over time. It provides a standardized way to compare salary increases across different income levels.

4. Using the Calculator

Tips: Enter both old and new salary amounts in the same currency. Ensure both values are positive numbers. The calculator will automatically compute the percentage increase.

5. Frequently Asked Questions (FAQ)

Q1: What is considered a good salary hike percentage?
A: A good hike typically ranges from 10-20% for internal promotions and 15-30% for job changes, though this varies by industry, experience, and location.

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

Q3: Should I consider bonuses in salary hike calculations?
A: For accurate comparison, use base salary only. Bonuses and other variable components should be considered separately.

Q4: How often should salary hikes occur?
A: Most companies provide annual salary hikes during performance reviews, but this can vary by company policy and industry standards.

Q5: Does this calculator work for any currency?
A: Yes, the calculator works with any currency as long as both salary amounts are in the same currency unit.