How to Calculate Salary Hike Percentage: A Complete Guide
Understanding how to calculate your salary hike percentage is essential for evaluating job offers, annual appraisals, and career growth. Whether you're an employee or an employer, having clarity on this calculation ensures transparency and better decision-making.
Table of Contents
- What is Salary Hike Percentage?
- Formula to Calculate Salary Hike
- Examples (INR & USD)
- Free Salary Hike Calculator Tool
- Is Your Salary Hike Fair?
- FAQs on Salary Hike Percentage
- Final Thoughts
What is Salary Hike Percentage?
Salary hike percentage refers to the percentage increase in your current salary over your previous salary. It gives you a clear picture of how much more you're earning and is commonly used during:
- Performance reviews
- Job changes
- Promotions
- Negotiations
Formula to Calculate Salary Hike
Here’s the simple and effective formula:
Salary Hike % = [(New Salary - Old Salary) / Old Salary] × 100
Examples (INR & USD)
Example 1: In INR
- Old Salary: ₹50,000/month
- New Salary: ₹60,000/month
- Hike: 20%
Example 2: In USD
- Old Salary: $4,000/month
- New Salary: $4,800/month
- Hike: 20%
Free Salary Hike Calculator Tool
Salary Hike Calculator
Is Your Salary Hike Fair?
| Country | Average Annual Hike | For Job Changes |
|---|---|---|
| India | 8% – 12% | Up to 30%+ |
| USA | 3% – 5% | 10% – 20% |
Things to consider:
- Industry standards
- Your performance and skillset
- Inflation and cost of living
- Additional benefits and perks
FAQs on Salary Hike Percentage
1. What is a good salary hike percentage?
10%–15% is good for annual reviews. For job changes, 20%–30% is common.
2. How much hike can I ask for in a new job?
You can ask for 25%–40% based on your experience and demand.
3. Is salary hike calculated on basic salary or gross salary?
Usually on gross salary. Always confirm with your HR.
4. Does salary hike include bonus or just fixed salary?
Hike percentage refers to fixed salary unless stated otherwise.
5. What if I get a promotion with no hike?
Negotiate or ask when the financial raise will follow.
6. How do I use the hike percentage to negotiate better?
Use industry data, your performance, and this formula to support your negotiation.
Final Thoughts
Knowing how to calculate salary hike percentage helps you make informed decisions, negotiate better, and understand your growth. Use this guide and calculator tool to assess your salary hike anytime!