In this video we discuss how to calculate or find the salary and hourly pay increase percentage. We go through the formula for increase percentage and a couple of examples.

Transcript/notes
The formula for calculating salary increase percentage is, percent increase equals, the salary increase amount divided by their old salary, times 100 percent.

We are going to go through an example for hourly rate employees and salaried employees. Let’s start with hourly paid. If someone makes $14.85 per hour and gets an 80 cent per hour raise, what is the percent increase in pay?

Using the formula, we have percent increase equals, .80 for 80 cents, divided by $14.85, their old hourly rate, times 100 percent.

From this, these dollar signs cancel out, and we have .0539 rounded off, times 100 percent. Which calculates to 5.39%. So, they got a 5.39% raise.
Now for a salaried employee. If someone makes $41,000 a year and receives a $2700 raise, what is the percent increase in pay.

Using the same formula, we have percent increase equals $2700, their pay increase, divided by $41,000, their old salary, times 100%. Again, the dollar signs cancel out and we have .0659 times 100%, which calculates to 6.59%. So, they got a 6.59% increase in pay.

Keep in mind that this does not take into account any tax or other deductions.

Timestamps
0:00 Formula for salary increase percentage
0:14 Salary increase percent for hourly employee
0:48 Salary increase percent for salaried employee

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