To calculate the new salary after a percentage increase:
\[ NS = CS + \left(\frac{CS \times PI}{100}\right) \]
Where:
A compensation increase refers to the rise in an employee's salary or wages. This increase can be due to various factors such as performance, inflation, promotion, or market adjustments. The percentage increase is often used to express how much the salary has been raised relative to the current salary. Understanding how to calculate the new salary after a percentage increase is essential for both employers and employees to ensure fair and transparent compensation practices.
Let's assume the current salary is $50,000 and the percentage increase is 5%:
Using the formula:
\[ NS = 50{,}000 + \left(\frac{50{,}000 \times 5}{100}\right) = 50{,}000 + 2{,}500 = 52{,}500 \]
The New Salary is $52,500.
