Salary hike calculator
Work out your percentage hike, or your new salary after a raise.
Your hike
+20.0%
A simple percentage on annual CTC. Your in-hand change depends on the new structure and tax.
How it works
A salary hike is usually expressed as a percentage of current CTC. This calculator works both ways: from two salaries to a percentage, or from a percentage to the new salary.
In-hand pay will not rise by the same percentage, because PF, tax and the salary structure change with it.
Formula
- Hike % = (new salary − current salary) ÷ current salary × 100
- New salary = current salary × (1 + hike % ÷ 100)
Worked example
Current CTC ₹8,00,000, hike of 12%
- New CTC = ₹8,00,000 × 1.12 = ₹8,96,000
- Increase = ₹96,000 a year, about ₹8,000 a month before deductions
Common mistakes to avoid
- Comparing a hike on CTC with a change in in-hand pay.
- Including one-time joining or retention bonus in the base.
- Forgetting that a higher basic increases PF and may move the employee out of ESI.
Salary hike calculator: FAQs
Is the hike calculated on CTC or gross?
Most Indian companies express increments on annual CTC. Check your letter to see which base is used.
Why did my in-hand rise less than the hike?
Higher pay increases employee PF and TDS, and may change PT, so the net increase is smaller than the percentage on CTC.
Related reading
NeevHR runs these calculations for your whole payroll
PF, ESI, PT, TDS, gratuity and bonus computed from one employee record every cycle.
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