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 (new regime FY 2026-27: ₹4L, ₹8L, ₹12L, ₹16L, ₹20L, ₹24L), more of your income gets taxed at higher rates. Crossing ₹12L taxable income also ends the full rebate (marginal relief softens the jump). A 20% CTC hike might translate to only 12–15% increase in take-home. This effect is more pronounced at higher salary ranges.

Typical recent appraisal ranges (indicative only, check current surveys for your industry): 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.