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 proposed salary amount
• \( \text{Old Salary} \) — The original or current salary amount
• \( \text{Hike %} \) — The percentage increase in salary

Explanation: The formula calculates the relative increase by finding the difference between new and old salary, dividing by the old salary, and converting to percentage by multiplying by 100.

3. Importance of Salary Hike Calculation

Details: Calculating salary hike percentage is crucial for salary negotiations, performance evaluations, career planning, 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 values are positive numbers. The calculator will display both the percentage increase and the absolute monetary increase.

5. Frequently Asked Questions (FAQ)

Q1: What is considered a good salary hike percentage?
A: A good hike typically ranges from 8-15% for internal promotions and 15-30% or more when changing companies, though this varies by industry and experience level.

Q2: Can the calculator handle salary decreases?
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 the salary calculation?
A: For accurate comparison, use base salary amounts excluding bonuses and one-time payments to get a clear picture of your regular compensation growth.

Q4: How often should I calculate my salary hike?
A: It's recommended to calculate after each salary revision, job change, or annually to track your career progression and market value.

Q5: Does this work for hourly wages or part-time salaries?
A: Yes, you can use this calculator for any form of compensation as long as you're comparing equivalent time periods (e.g., annual salary to annual salary).