Salary Hike Calculator
Calculate your new salary after a percentage hike.
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Enter your current annual salary and the hike percentage, and this salary hike calculator shows your new yearly salary, the increase in rupees and the new monthly figure. It is useful at appraisal time, when weighing up a job offer, or when preparing for a pay negotiation.
How the new salary is calculated
- Increase = current salary × hike ÷ 100
- New salary = current salary + increase
- New monthly = new salary ÷ 12
With the placeholder values, ₹6,00,000 a year (6 LPA) and a 15% hike: the increase is 6,00,000 × 15 ÷ 100 = ₹90,000, the new salary is ₹6,90,000, and the new monthly figure is ₹57,500. In other words, the hike adds ₹7,500 to each month's share of your package.
| Scenario | New annual salary | New monthly |
|---|---|---|
| ₹12,00,000 with an 8% appraisal hike | ₹12,96,000 | ₹1,08,000 |
| ₹4,50,000 with a 30% switch hike | ₹5,85,000 | ₹48,750 |
| ₹6,00,000 with a 15% hike | ₹6,90,000 | ₹57,500 |
With only salary income, the new tax regime charges nothing up to ₹12.75 lakh a year, so the first row's hike to ₹12,96,000 also brings some income tax, which the Income Tax Calculator works out under both regimes.
CTC is not take-home pay
The monthly figure is simply the annual number divided by 12. If you enter your CTC, it is CTC per month, not the amount credited to your bank. An Indian CTC usually includes the employer's PF contribution (12% of basic pay), a gratuity provision, insurance premiums and often a variable or performance bonus that is paid later, if at all. Your in-hand salary is further reduced by your own PF contribution, professional tax in states that levy it, and income tax deducted at source.
Two practical consequences follow. A "15% hike on CTC" may not mean 15% more in your account each month, especially if the variable portion grew. And if you want to see the in-hand effect, apply the hike to your fixed pay instead of the full CTC. The In-Hand Salary Calculator then turns the new CTC into a monthly take-home figure after PF, professional tax and income tax.
Working out the percentage from an offer letter
If you know the old and new figures, the hike is (new − old) ÷ old × 100. An offer of ₹8,40,000 against a current ₹7,00,000 is a 20% hike. The Percentage Change Calculator does this directly, and it is worth doing because recruiters sometimes quote the percentage on a different base, such as fixed pay only.
Your hike against inflation
A raise only improves your buying power by the amount it beats inflation. The real increase is (1 + hike) ÷ (1 + inflation) − 1. An 8% hike with 5% inflation is a real gain of about 2.86%; with 6% inflation it is only 1.89%. Hikes also compound: two consecutive 10% raises lift pay by 21%, not 20%, because the second one applies to the already higher salary.
If you are preparing to ask for more, run two or three target figures through the calculator before the meeting, so you know the percentage each one represents and which to quote first. The numbers here are estimates for planning, not tax or financial advice.