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Promotion vs Annual Increment

Understanding how annual percentage increments differ from band promotions over a 5 to 10 year horizon is critical for evaluating whether to seek internal advancement or lateral job changes.

Annual Increments

Standard increments adjust pay within your current band (typically 6–10%), maintaining existing job responsibilities and tenure while matching living cost changes.

Promotion Multipliers

Promotions elevate you to a new salary band, providing a 15–25% immediate jump and permanently increasing the baseline upon which all future increments compound.

Simulate Compounding Growth

Test various promotion and annual appraisal increment percentages with our calculator to understand long-term compensation trajectories.

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