Calculate your salary hike
Enter a hike percentage to see your new salary, or your new salary to see the hike percentage.
Work out a salary increment either way round: enter the hike percentage to see the new salary, or enter the new salary to see what percentage hike it is. It works with monthly salary or yearly CTC and shows both.
How to calculate a salary hike
New salary from a hike percentage:
New salary = current salary × (1 + hike% ÷ 100)
A 10% hike on ₹50,000 a month is ₹50,000 × 1.10 = ₹55,000 a month, an increase of ₹5,000 a month or ₹60,000 a year.
Hike percentage from the new salary:
Hike % = (new salary − current salary) ÷ current salary × 100
Going from ₹40,000 to ₹46,000 a month is (46,000 − 40,000) ÷ 40,000 × 100 = 15%.
CTC hike versus in-hand hike
A hike is usually quoted on CTC, the full cost to the company. Your in-hand salary rarely rises by the same percentage: employer PF and gratuity are part of CTC, and a higher salary can move you into a higher tax slab, so TDS rises too. To see the take-home effect, work out the new salary’s components and use the income tax calculator for the tax side.
For the maths in more detail, with worked examples, see how to calculate salary hike percentage.
Frequently asked questions
How do I calculate the percentage hike on my salary?
Subtract your old salary from your new salary, divide the difference by the old salary, and multiply by 100. The calculator does this when you choose “I know the new salary”.
Should I use monthly salary or annual CTC?
Either. Choose “Per month” or “Per year (CTC)” and enter the old and new figures for the same period; the percentage is the same, and the calculator shows the amounts both ways.
Why does my take-home pay go up by less than my hike?
Because the hike applies to CTC, which includes employer contributions such as PF and gratuity, and because income tax on a higher salary is higher. Deductions rise with the salary, so the in-hand increase is smaller than the CTC increase.
Does a hike change my PF?
If your employer calculates PF on your actual basic salary, a higher basic means a higher PF contribution. If PF is capped at the wage ceiling, it may not change. See the PF calculator.
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