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Salary Hike Calculator

New salary after percentage increment.

GratuityPPFEPF / PFEMISIPFDNPSIncome TaxHRAAgeGSTPercentageBMITake-Home SalaryStamp DutySIP Step-UpLoan EligibilityTDSRDSection 80C PlannerSalary Hike
₹
%

After hike

Old annual₹ 10,00,000
Monthly increase₹ 12,500

After appraisal or offer revision, use the salary hike calculator to convert hike percentage into new annual CTC, annual increase, and approximate monthly increase.

What is this calculator?

A salary hike calculator applies the hike percentage to your current salary or CTC. It helps employees understand whether an appraisal meets expectations and how much monthly budget can actually change.

Formula

New annual salary = current annual salary x (1 + hike% / 100).
Annual increase = new annual salary - current annual salary.
Approximate monthly increase = annual increase / 12.

Example

Example 1: Current CTC ₹10,00,000 and hike 15%. New CTC is ₹11,50,000. Annual increase is ₹1,50,000 and rough monthly increase before tax/deductions is ₹12,500.

Another example

Example 2: Current CTC ₹18,00,000 and hike 8%. New CTC is ₹19,44,000. The annual increase is ₹1,44,000, but in-hand increase can be lower after tax, PF, and variable-pay split.

Assumptions and disclaimers

Updated context: 2026

  • •Hike is applied on the salary amount entered by the user, usually annual CTC or fixed gross.
  • •Variable pay, joining bonus, retention bonus, stock benefits, employer PF, and gratuity may be treated separately by companies.
  • •Monthly increase shown before tax may not match payslip in-hand increase.
  • •Use revised compensation letter for final confirmation.

In practice (India)

Hike percentage can look attractive but still produce limited take-home increase if it is applied to CTC that includes variable bonus, employer PF, insurance, or retention components. Always read the revised salary annexure.

After calculating the gross hike, use the take-home salary calculator to estimate how much of the raise reaches your bank account. Use the income tax calculator if the hike moves you into a different slab or changes old-vs-new regime decision.

Benefits

  • ✓Understand appraisal impact in annual and monthly terms.
  • ✓Compare offer revision or counteroffer numbers quickly.
  • ✓Plan budget changes after hike.
  • ✓Link gross hike to take-home salary planning.

Related calculators and guides

Frequently Asked Questions

Is hike calculated on CTC or basic salary?
Companies differ. Most appraisal letters mention revised CTC or fixed pay. Confirm the base before comparing percentages.
Why is my in-hand increase lower than monthly hike?
Tax, PF, professional tax, variable pay, and benefits can reduce the amount that reaches your bank.
How do I calculate hike percentage from old and new salary?
Hike % = ((new salary - old salary) / old salary) x 100.
Is a higher percentage always better?
Not necessarily. Compare fixed pay, variable pay, benefits, role growth, location cost, and work terms.
Should I update tax declarations after a hike?
Yes, a mid-year hike can change TDS. Review declarations and regime choice with payroll if needed.

This calculator explains percentage change only. Final payroll depends on salary structure and deductions.

How we calculate

Estimates use the formula shown above. Rules and rates are checked against official India sources where applicable (Income Tax Act, RBI/NSC circulars, GST law). Last reviewed for 2026.

  • Hike is applied on the salary amount entered by the user, usually annual CTC or fixed gross.
  • Variable pay, joining bonus, retention bonus, stock benefits, employer PF, and gratuity may be treated separately by companies.
  • Monthly increase shown before tax may not match payslip in-hand increase.
  • Use revised compensation letter for final confirmation.

Full methodology & sources