Got an appraisal letter or a new job offer? This calculator shows your new salary after a hike, or works backwards to find the hike percentage between your current and offered pay.
Formulas
- New salary = Current salary × (1 + Hike % ÷ 100)
- Hike % = (New salary − Current salary) ÷ Current salary × 100
Examples
| Current CTC | Hike | New CTC | Extra per month |
|---|---|---|---|
| ₹6,00,000 | 10% | ₹6,60,000 | ₹5,000 |
| ₹8,00,000 | 12% | ₹8,96,000 | ₹8,000 |
| ₹12,00,000 | 30% (job switch) | ₹15,60,000 | ₹30,000 |
| ₹20,00,000 | 8% | ₹21,60,000 | ₹13,333 |
What is a good salary hike?
Annual appraisals in India have recently averaged in the high single digits, while job switches often bring 20–40%. A hike is only a real raise if it beats inflation: with inflation around 4–5%, a 5% hike barely keeps your buying power the same.
Compare hikes on in-hand pay, not CTC
A 30% CTC jump can feel smaller in your bank account once tax and PF are deducted, especially if it pushes you past the ₹12 lakh tax-free threshold. Run both packages through the CTC to in-hand calculator to compare monthly take-home.
Negotiation tips
- Anchor on the fixed component, not variable pay or joining bonuses.
- Ask how the basic % is set – it affects PF, gratuity and HRA.
- If the hike percentage is fixed, ask for a better title or an earlier review date.
Step-by-step: calculating a hike manually
- Write down your current salary – use the same basis (annual CTC, monthly gross or fixed pay) for both old and new.
- Multiply by the hike percentage and divide by 100. ₹9,00,000 × 15 ÷ 100 = ₹1,35,000.
- Add it to your current salary: ₹9,00,000 + ₹1,35,000 = ₹10,35,000.
- To find the percentage from two salaries: (₹10,35,000 − ₹9,00,000) ÷ ₹9,00,000 × 100 = 15%.
Hikes compound – here’s what that means over time
Starting at ₹6 lakh a year, different average annual hikes lead to very different salaries:
| Average hike | After 5 years | After 10 years |
|---|---|---|
| 5% | ₹7.66 lakh | ₹9.77 lakh |
| 8% | ₹8.82 lakh | ₹12.95 lakh |
| 10% | ₹9.66 lakh | ₹15.56 lakh |
| 15% | ₹12.07 lakh | ₹24.27 lakh |
A couple of well-timed job switches with 30%+ jumps can move you along the faster curve.
Real hike vs nominal hike
Your real raise is roughly your hike minus inflation. A 10% hike with 5% inflation increases your buying power by about 4.8% (1.10 ÷ 1.05 − 1 ≈ 0.048). If your hike is below inflation, you are effectively earning less than last year.
How to ask for a better hike
- Bring data: salary surveys, job postings for your role and city, and offers you have received.
- Quantify impact: revenue earned, costs saved, projects shipped, people mentored.
- Time it well: raise the topic before budgets are finalised, not after letters are issued.
- Negotiate the whole package: if the percentage is fixed, ask about a promotion, extra leave, remote days, certification budgets or a mid-year review.
Hike vs promotion
A promotion usually moves you to a higher salary band, so it can bring a bigger one-time jump than a normal appraisal – often 15–25% at many companies. It also raises the base on which all future hikes compound.
Real-life scenarios
- Annual appraisal: Sneha earns ₹7.2 lakh and gets a 9% hike. Her new CTC is ₹7,84,800 – about ₹5,400 more per month before tax.
- Job switch: Vikram’s offer is ₹18 lakh against his current ₹13.5 lakh – a 33.3% hike. Checking in-hand pay shows the monthly increase is smaller because more income is now taxed.
- Counter-offer: Asked to match a ₹20 lakh offer, Neha’s employer proposes ₹18.5 lakh. On her current ₹16 lakh, that’s 15.6% versus 25% – a gap worth negotiating.
- US raise: A $68,000 salary with a 4% merit increase becomes $70,720, about $227 more a month gross.
Related calculators
- CTC to in-hand salary – see what a hike means each month
- Income tax calculator – tax on your new salary
- Hourly to salary – for hourly roles
FAQs
Is a 30% hike on switching jobs realistic?
For in-demand skills it often is. Many candidates in tech and finance negotiate 20–40% when moving. Always compare the new offer’s take-home pay, not just CTC.
How do I convert a monthly hike to annual?
Multiply the monthly increase by 12. A ₹5,000 monthly increase equals ₹60,000 a year.
How do I calculate a hike on monthly salary?
The same way – enter your monthly salary as the current salary. The percentage is the same whether you use monthly or annual numbers.
Is a hike calculated on CTC or gross?
Most companies quote hikes on CTC. If yours quotes on fixed pay only, enter fixed pay.