1. What is a Salary Comparison Calculator?

Definition: This calculator determines the percentage and absolute change between two salary amounts from different years.

Purpose: It helps employees and employers understand salary growth, negotiate raises, and compare compensation changes over time.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( \%Δ \) — Percentage change in salary
• \( S_{new} \) — New salary amount (USD)
• \( S_{old} \) — Old salary amount (USD)

Explanation: The difference between new and old salary is divided by the old salary to get the relative change, then multiplied by 100 to convert to percentage.

3. Importance of Salary Comparison

Details: Tracking salary changes helps evaluate career progress, cost-of-living adjustments, and market competitiveness of compensation.

4. Using the Calculator

Tips: Enter your old salary and new salary in USD. The calculator will show both percentage and absolute dollar change.

5. Frequently Asked Questions (FAQ)

Q1: What does a negative percentage mean?
A: A negative percentage indicates a salary decrease from the old to new amount.

Q2: Should I use gross or net salary?
A: Typically use gross (pre-tax) salary for comparisons, as net salary can vary based on tax changes.

Q3: How often should I compare salaries?
A: Annually is common, but you might compare more frequently during job changes or promotions.

Q4: What's considered a good salary increase?
A: Typically 3-5% for cost-of-living adjustments, 10%+ for promotions, but varies by industry and location.

Q5: Can I compare salaries from different currencies?
A: First convert both amounts to the same currency using historical exchange rates for accurate comparison.