1. What is Percentage Raise?

Percentage raise is a mathematical calculation used to determine the percentage increase in salary or wage from an old amount to a new amount. It helps employees and employers understand the magnitude of salary changes.

2. How Does the Calculator Work?

The calculator uses the percentage raise formula:

Where:

• \( \text{New} \) — New salary amount
• \( \text{Old} \) — Old salary amount

Explanation: The formula calculates the relative increase as a percentage of the original amount, providing a standardized way to compare salary changes regardless of the actual amounts involved.

3. Importance of Raise Calculation

Details: Understanding percentage raises is crucial for salary negotiations, performance reviews, career planning, and financial management. It allows for fair comparisons across different salary levels and helps in making informed employment decisions.

4. Using the Calculator

Tips: Enter the old salary and new salary amounts in any currency (calculator assumes same currency for both). Both values must be positive numbers. The calculator will display both the percentage increase and the absolute amount increase.

5. Frequently Asked Questions (FAQ)

Q1: What is considered a good percentage raise?
A: A good raise typically ranges from 3-5% for cost of living adjustments, while performance-based raises can range from 5-15% or more depending on the industry and individual performance.

Q2: How does percentage raise differ from absolute raise?
A: Percentage raise shows the relative increase, while absolute raise shows the actual monetary difference. Both are important for understanding the full impact of a salary change.

Q3: Can this calculator be used for 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.

Q4: Should I consider inflation when evaluating a raise?
A: Yes, to determine real wage growth, compare your percentage raise to the current inflation rate. A raise below inflation means decreased purchasing power.

Q5: How often should salary raises be calculated?
A: Typically evaluated annually during performance reviews, but can be calculated whenever there's a salary change for negotiation or comparison purposes.