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, performance raises, or cost-of-living adjustments.

2. How Does the Calculator Work?

The calculator uses the salary hike formula:

Where:

• Old Salary — Current salary amount before the hike
• Percentage — The percentage increase being applied

Explanation: The formula calculates the increase amount by multiplying the old salary by the percentage (converted to decimal), then adds this to the original salary.

3. Importance of Salary Hike Calculation

Details: Understanding how percentage increases affect salary helps both employees evaluate raise offers and employers budget for salary adjustments.

4. Using the Calculator

Tips: Enter the current salary in USD and the percentage increase you expect. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How do I calculate the percentage increase from two salaries?
A: Use: ((New Salary - Old Salary) / Old Salary) × 100

Q2: Does this account for taxes or deductions?
A: No, this calculates gross salary only. Net pay would be lower after deductions.

Q3: What's a typical salary hike percentage?
A: Typical raises range 2-5% for cost-of-living, 5-10% for performance, and higher for promotions.

Q4: How does compounding work with multiple raises?
A: Each raise builds on the new salary, not the original. Use this calculator sequentially for multiple raises.

Q5: Can I use this for salary decreases?
A: Yes, enter a negative percentage to calculate salary reductions.