1. What is Salary Hike Calculation?

The salary hike calculation determines the new salary after applying a percentage increase to the current salary. This is commonly used for salary negotiations, promotions, or annual raises.

2. How Does the Calculator Work?

The calculator uses the salary hike formula:

Where:

• Old Salary — Current salary amount before hike
• Hike Percentage — Percentage increase to be applied

Explanation: The formula calculates the new salary by adding the percentage increase to the original salary.

3. Importance of Salary Hike Calculation

Details: Understanding how salary hikes work helps in financial planning, evaluating job offers, and negotiating compensation packages.

4. Using the Calculator

Tips: Enter your current salary in USD and the hike percentage you're expecting or negotiating. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How is this different from a bonus?
A: A salary hike is a permanent increase to your base salary, while a bonus is typically a one-time payment.

Q2: What's a typical salary hike percentage?
A: Typical annual raises range from 2-5%, while promotions might offer 10-20% or more depending on the role and company.

Q3: How do I calculate the hike percentage from two salaries?
A: Use the formula: ((New Salary - Old Salary) / Old Salary) × 100

Q4: Are salary hikes compounded annually?
A: Generally yes - each raise is applied to your current salary, creating a compounding effect over time.

Q5: Does this calculator account for taxes?
A: No, this shows gross salary before deductions. Net pay would be lower after taxes and other deductions.