You form a percentage change by dividing the actual change by the "base"- the original value. Suppose the persons original salary was "S". If we call the raise "R", then saying it was a 10% raise means \(\displaystyle \frac{R}{S}= .10\) so that R= .10S and the new salary is S+ .10S= (1.1)S. When we talk about a new raise or reduction, we have to use that new salary as base. If we want to reduce back from (1.1)S to S, we have to reduce by .1S, the same amount we raised by before. But the base has changed. The percentage reduction is \(\displaystyle \frac{.1S}{1.1S}= \frac{.1}{1.1}\) since the "S"s cancel.