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Percentage Increase Formula:
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The salary percentage increase measures how much a salary has grown relative to its original amount. It's commonly used in the UK to evaluate pay raises, compare job offers, or assess salary growth over time.
The calculator uses the percentage increase formula:
Where:
Explanation: The formula calculates the difference between the new and old salary, divides by the old salary to get the relative change, then multiplies by 100 to convert to a percentage.
Details: Understanding your salary increase percentage helps in financial planning, negotiating better compensation, and comparing job offers objectively. It's particularly important in the UK where salary progression often follows structured pay scales.
Tips: Enter both salaries in GBP (£). For accurate results, use gross (before tax) salary figures. The old salary should be your previous salary, and the new salary your current or proposed salary.
Q1: Should I use gross or net salary for this calculation?
A: Always use gross salary (before tax and deductions) for percentage increase calculations as net salary can vary based on personal circumstances.
Q2: What's considered a good salary increase in the UK?
A: Typically, 2-5% is a standard annual increase. 10%+ is considered excellent, while promotions may bring 15-25% increases.
Q3: How does this differ from real terms pay increase?
A: This shows nominal increase. For real terms (inflation-adjusted) increase, you'd need to factor in CPI/RPI inflation rates.
Q4: Can I use this for hourly wage calculations?
A: Yes, if comparing consistent hours. For variable hours, calculate annual equivalent salaries first.
Q5: How does this apply to bonus calculations?
A: For bonus percentage calculations, treat bonus as "new salary" and base salary as "old salary".