About the Salary Hike
Appraisal letters and job offers speak in percentages, while household budgets run on monthly rupees. This calculator connects the two. Enter your current CTC and the hike percentage to see the new CTC, the increase per year and what it means per month. Or enter the old and new figures and it tells you the percentage, which is useful when an offer is quoted as a number.
Small business owners can use it from the other side of the table: to see what a 10% increment across the team adds to the annual wage bill, or to convert a fixed rupee raise into a percentage for the records. Figures can be entered as annual CTC or as monthly salary, and a negative percentage shows the effect of a pay cut.
Remember that CTC is the total cost to the employer, not the amount credited to your bank account. Employer provident fund contributions, gratuity, insurance and variable pay sit inside CTC, and income tax is deducted from what remains. A 12% rise in CTC therefore rarely means a 12% rise in take-home pay, so ask for the revised salary structure as well.
How to use it
- 1Choose whether you know the hike percentage or the old and new salary figures.
- 2Select whether you are entering annual CTC or monthly salary.
- 3Enter the current pay and either the hike percentage or the new pay.
- 4Read the new CTC or the hike percentage, with the yearly and monthly difference shown alongside.
How this is calculated
New salary = Current salary × (1 + Hike % ÷ 100) Hike % = (New salary − Current salary) ÷ Current salary × 100 Monthly difference = (New annual CTC − Current annual CTC) ÷ 12
Frequently asked questions
How do I calculate my salary after a hike?
Multiply your current salary by the hike percentage, divide by 100 and add the result to the current salary. A CTC of ₹6,00,000 with a 12% hike rises by ₹72,000 to ₹6,72,000 a year, which is ₹6,000 more per month before deductions and tax.
How do I find the hike percentage from my old and new salary?
Subtract the old salary from the new one, divide by the old salary and multiply by 100. Moving from ₹6,00,000 to ₹7,50,000 is an increase of ₹1,50,000, and 1,50,000 ÷ 6,00,000 × 100 gives a 25% hike. Always compare like with like — CTC with CTC, or fixed pay with fixed pay.
Will my take-home pay rise by the same percentage?
Usually not. CTC includes employer provident fund, gratuity and often insurance and variable pay, none of which reaches your account every month. A higher salary can also move part of your income into a higher tax slab. Compare the fixed monthly components and the tax deducted in the old and new structures to see the real change.
What is a good salary hike when changing jobs?
There is no single right figure: it depends on your industry, skills, location and how your current pay compares with the market. Rather than chasing a percentage alone, compare the fixed pay, variable pay, benefits, role and growth in both offers. This calculator simply makes the arithmetic of each offer clear.
Can I use this calculator for a pay cut or a fixed rupee raise?
Yes. Enter a negative percentage, such as −10, to see the reduced salary and the monthly decrease. For a fixed raise, switch to the old and new salary mode, enter both figures, and the tool converts the raise into a percentage that you can compare with previous years.