Salary Hike Calculator
Key takeaways
- The 15% hike lifts the annual CTC ₹1.80 L — from ₹12.00 L to ₹13.80 L.
- Month to month that is ₹15,000.00 more in CTC terms — every ₹100 of current salary becomes ₹115.00.
- At 20% instead, the new CTC would be ₹14.40 L — ₹60,000 a year more than this one delivers.
Current vs new CTC
Both bars are annual cost to company. The gap between them is the annual increase above; when the new CTC is the shorter bar, that figure is negative.
About the Salary Hike Calculator
The Salary Hike Calculator converts between a percentage increase and the salary it produces, in either direction — useful when you have been offered a percentage and want the number, and equally when you have two numbers and want to know what percentage they represent.
Choose a mode. "Find new salary from hike %" takes your current annual CTC and a hike percentage and works out the new CTC. "Find hike % from salaries" takes the current and new CTC directly and works out the percentage between them; in that mode the hike field is ignored entirely, which is why both fields stay on the form and each is labelled with the mode it belongs to.
"New salary" is the resulting annual CTC either way. "Hike %" is the percentage increase — always recomputed from the two salary figures rather than echoed back from the input, so the two outputs stay consistent with each other whichever mode produced them. "Annual increase" and "Monthly increase" express the same gap over a year and over a month. The chart puts the two CTC figures on one scale, so the gap between the bars is the annual increase.
Everything here works in CTC (cost to company) terms exactly as entered. It does not break the figure into basic pay, allowances, employer PF or variable pay, and a hike in CTC does not translate into an identical rise in take-home: a package restructured toward variable pay or a larger PF contribution can raise CTC while moving in-hand pay much less. Our Take-Home Salary and Income Tax calculators work out the in-hand side, and the second mode here accepts a new CTC below the current one, so a downward move is reported as a negative rather than refused.
Frequently asked questions
How do I calculate a salary hike percentage?
Hike % = (New CTC − Current CTC) ÷ Current CTC × 100. Going from ₹10,00,000 to ₹12,50,000 is (2,50,000 ÷ 10,00,000) × 100 = 25%. Note the denominator is the OLD salary, which is why a 25% rise followed by a 20% cut does not return you to where you started.
How do I calculate a new salary from a hike percentage?
New CTC = Current CTC × (1 + hike ÷ 100). A 15% hike on ₹12,00,000 gives ₹13,80,000. The first mode on this page does exactly that, and then recomputes the percentage back from the two figures so the outputs cannot disagree with each other.
Will a 15% CTC hike raise my take-home by 15%?
Not usually. CTC includes components that never reach your bank account in the same proportion — employer PF and gratuity accrual, insurance, and any variable or performance-linked pay. Tax also rises with income, and a higher slab applies to the increment. The Take-Home Salary calculator on this site computes in-hand pay from a CTC figure.
What does CTC actually include?
Cost to company is everything the employer spends on you: basic pay, allowances such as HRA, employer contributions to PF and gratuity, insurance premiums, and any bonus or variable component at its target value. Two offers with the same CTC can differ substantially in in-hand pay depending on how that total is composed.
Can this calculator handle a pay cut?
Yes. In "Find hike % from salaries" mode, enter a new CTC below the current one and the hike percentage, annual change and monthly change all come out negative. The bar for the new CTC becomes the shorter of the two, and the result tiles carry the sign.
How do I compare two job offers with this?
Run each offer as a separate calculation against your current CTC to get the hike each represents, then compare the monthly-increase figures. Bear in mind that CTC alone does not settle it — the split between fixed and variable pay, the PF contribution, and the tax treatment of each component all affect what actually arrives each month.
Disclaimer: This calculator is for information and education only. It is not investment advice and not a recommendation. Where a rate or a price is an input, it is an assumption, and actual rates vary. It does not take your personal circumstances into account. Every figure is computed solely by applying the formula and assumptions stated on this page to the inputs you entered.