Salary Hike Calculator
Find your new salary after a percentage increment — or work out the hike % from your old and new salary — with a live monthly & annual breakdown.
- Free — no sign-up
- Instant, on-screen results
- Built by our CA · CS team
- Rules cited on the page
Enter your figures — the result on the right updates as you type.
Increment breakdown
Got a raise? Plan your tax before it hits your payslip
A CA reviews your new CTC, structures it tax-efficiently and files your ITR accurately.
Disclaimer: Indicative estimate. A percentage hike on gross salary is not the same as your in-hand increase — tax, PF and other deductions apply. Structure your revised CTC with a professional.
How a salary increment works
A salary hike is expressed as a percentage of your existing salary. Multiply your current pay by the hike percentage to get the increase, then add it back to get your new salary. For example, a 15% hike on ₹50,000 adds ₹7,500, taking you to ₹57,500. Working the other way, if your salary rose from ₹50,000 to ₹60,000, the hike is (60,000 − 50,000) ÷ 50,000 × 100 = 20%.
| Increase | Current × Hike% ÷ 100 |
| New salary | Current × (1 + Hike% ÷ 100) |
| Example: ₹50,000 + 15% | ₹57,500 |
| Increase | New − Old |
| Hike % | (New − Old) ÷ Old × 100 |
| Example: ₹50,000 → ₹60,000 | 20% |
Worked example
Here is how the same hike percentage plays out across different starting salaries — and why the monthly figure and the annual figure tell very different stories.
Key terms explained
CTC hike vs in-hand hike
A hike quoted on your CTC (cost to company) includes employer PF, gratuity and variable pay — so your take-home may rise by less than the headline percentage. Always ask whether a hike is on CTC or on fixed/in-hand pay.
Effective take-home after tax
A raise can push part of your income into a higher tax slab. The extra amount is taxed at your marginal rate, so a ₹1,00,000 annual hike does not add ₹1,00,000 to your bank balance — use an income tax calculator to see the net figure.
Appraisal cycle
Most companies revise salaries once a year during the appraisal cycle (often April or the start of the financial year). Some run half-yearly or on your work anniversary. The hike is usually effective from a fixed date, not your appraisal meeting.
Gross vs net increase
The gross increase is what this calculator shows — the rise in your stated salary. Your net increase is what actually lands in-hand after income tax, PF and professional tax are deducted from the additional amount.
Questions people ask
Short answers on Salary Hike Calculator. Tap a question to open it.
01How is a percentage hike calculated?
New salary = old salary × (1 + hike ÷ 100). Working backwards, hike percentage = (new − old) ÷ old × 100. The tool computes either direction.
02Should I compare on CTC or take-home?
On take-home, and on the fixed component. A hike delivered largely through variable pay or an increased employer PF contribution improves CTC without improving what reaches your bank account.
03What is a real hike after inflation?
Subtract inflation from the nominal increase. With inflation around 5% to 6%, a 7% hike is barely a real increase, and anything below inflation is a pay cut in purchasing power.
04Does a hike change my tax regime choice?
It can. The break-even level of deductions between the old and new regimes shifts with income, so it is worth re-running the comparison after a significant increase.
05How does a hike affect PF and gratuity?
Both are linked to basic salary. If the increase is loaded into allowances rather than basic, your PF and gratuity accrual barely move — worth checking in the revised structure.
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Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.