This blog will help you whether you're changing jobs, getting a performance appraisal, or asking a client for a raise. Percentages are useful for comparisons, such as comparing your current salary to your next or to someone with similar experience. However, absolute numbers are what truly matter. A 60% increase on a fee of ₹1,500 is not much in real terms, but percentages can help put pay changes into context. Here’s how you can calculate your salary hike in percentage terms.
To begin, have your old and new salary details available. For instance, if your old salary was ₹50,000 and the new one is ₹60,000, you'll need these figures to compare.
Next, find the salary difference. For instance, in our example, the difference is ₹10,000 (₹60,000 — ₹50,000).
To calculate your increase, divide the salary difference by your old salary and multiply by 100. In this case, that's a 20% hike [(₹10,000 ÷ ₹50,000) x 100].
You can also do this calculation quite easily on MS Excel or GSheets. This is what it might look like on the spreadsheet.
To calculate your new salary after a hike, you can use the salary hike formula. For example, if you currently earn ₹1,00,000 per month and will receive a 15% hike, you can find your new salary by filling in the values in the formula:
Salary hike percentage = [(New salary — Old salary) x 100] ÷ Old salary
By solving for the new salary, we get:
New salary = ₹15,000 + ₹1,00,000
Therefore, your new salary will be ₹1,15,000.
Knowing how to calculate salary hike percentage is useful for 3 benefits.
To ask for a raise, first find out the average salary increase in your industry. Use the formula above to calculate a reasonable salary increase based on your current income before making your request.
This doesn’t need explaining, but knowing how to compute your salary pay hike can also help you get paid better.
The formula we talked about earlier can also help you calculate your new salary if you know your raise percentage. You can then check if your income has increased to the next tax bracket and adjust your tax savings accordingly, if necessary.
In conclusion, understanding how to calculate your salary hike percentage and your new salary after a hike is an essential skill for anyone who is looking to change jobs, get a performance appraisal, or ask for a raise. By knowing the percentage increase in your salary, you can negotiate your pay better, plan your taxes better, and ask for a salary that is on par with industry standards.
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To get a 30% raise, calculate 30% of your current salary and add it to your pay. For example, if you earn ₹50,000 a month, a 30% raise would be ₹15,000 more, bringing your new salary to ₹65,000.
To calculate a 20% salary increase, use this formula: [(New salary — Old salary) x 100] ÷ Old salary. For example, with a current salary of ₹60,000, a 20% increase would result in a new salary of ₹72,000.
To calculate a salary increase percentage, divide the difference between the new and current salary by the current salary, and then multiply the result by 100. The formula is: (New Salary - Current Salary) / Current Salary * 100.
Salary hikes are typically calculated on the basis of the employee's basic salary.