Salary Hike Calculator

Salary hike is simply a percentage increase on your current CTC: New CTC = Current CTC × (1 + Hike%/100). For example, a 15% hike on ₹12L CTC gives ₹13.8L. Most companies apply the hike on fixed components. Ask your HR for the revised offer letter to confirm breakup.

Not always. As your income crosses tax slabs (₹7L, ₹10L, ₹12L, etc.), more of your income gets taxed at higher rates. A 20% CTC hike might translate to only 12–15% increase in take-home. This effect is more pronounced at higher salary ranges.

Industry benchmarks for FY 2025-26: IT sector average is 8–12%, BFSI is 9–11%, FMCG 10–12%. Switching companies typically fetches 20–40% hike. An increment below 8% effectively means a real-term salary cut when accounting for 6–7% annual inflation.

Always negotiate on CTC. Take-home depends on your tax slab, PF deductions, and benefits structure which can vary. CTC is the standard metric for comparisons. However, when evaluating an offer, always calculate actual take-home — perks like free meals or cab allowance inflate CTC.

Employee PF is 12% of basic salary. If your basic salary increases post-hike, your PF deduction also increases, slightly reducing the net take-home benefit. Many employees opt out of VPF to maximize take-home. However, PF is part of your total compensation and earns 8.25% tax-free interest.