New salary from a percentage, or percentage from two figures
Salary Hike Calculator
A salary hike, appraisal increment, or promotion raise is usually quoted as a percentage. This calculator works both directions: enter your current salary and a hike percentage to see your new salary, or enter your old and new salary to see the exact percentage increase, whichever direction matches the number you actually have.
How a salary hike is calculated
A hike percentage is applied to your current annual CTC or salary, not to your monthly figure specifically, since that is how most Indian appraisal cycles quote it. The formula is straightforward: new salary equals current salary plus (current salary multiplied by the hike percentage). A 15% hike on a Rs 8,00,000 salary, for example, adds Rs 1,20,000, for a new salary of Rs 9,20,000.
Typical hike ranges in India
Annual appraisal hikes in India commonly fall in the 8-15% range for an average performer at a stable company, with top performers, promotions, or a job change often landing considerably higher, sometimes 20-40% or more for a switch to a new employer. There is no fixed rule and figures vary widely by industry, company performance, role seniority and individual rating, so treat any single percentage as a starting reference point rather than a guarantee.
Three worked examples
| Current salary | Hike % | Increase | New salary |
|---|---|---|---|
| Rs 6,00,000 | 10% | Rs 60,000 | Rs 6,60,000 |
| Rs 8,00,000 | 15% | Rs 1,20,000 | Rs 9,20,000 |
| Rs 12,00,000 | 25% | Rs 3,00,000 | Rs 15,00,000 |
Once you have your new salary figure, remember it is usually still a CTC number rather than what actually lands in your account each month: the in-hand salary calculator converts it the rest of the way, and a higher CTC can also shift you into a higher tax bracket, so it is worth checking your new take-home figure directly rather than assuming it scales by exactly the same percentage as the hike.
Working out the percentage from two salary figures
If you already know both your old and new salary, perhaps from an appraisal letter that only states the two rupee figures, switch the calculator above to "Hike percentage from old and new salary". The formula is the increase amount divided by the old salary, multiplied by 100: for example, a jump from Rs 7,00,000 to Rs 8,40,000 is a Rs 1,40,000 increase, which works out to exactly 20%.
Why a hike does not always translate 1:1 to take-home pay
A 15% hike on your CTC does not necessarily mean a 15% increase in your monthly in-hand salary. Two effects can shrink the gap: first, if the hike pushes part of your income into a higher tax slab, a larger share of the increase is taxed away; second, since employer PF and gratuity provisions typically scale with basic pay (usually a fixed percentage of CTC), a bigger CTC also means more of the increase is routed into components you do not receive monthly. Neither effect reverses the benefit of a hike, but both mean the percentage increase you see in your take-home pay is often somewhat smaller than the percentage increase in your CTC. Run both your old and new CTC figures through the in-hand salary calculator below to see the exact gap for your own numbers, or check the income tax calculator directly if you already know your new gross salary.
Hike, increment and promotion: three different things
These three terms get used loosely, but they describe different events. An increment is usually a smaller, near-automatic annual step, often tied mainly to inflation and a standard performance rating, and can be as modest as 3-6% in a flat year. A hike, in everyday usage, more often refers to the full appraisal-cycle revision, which factors in company performance, individual rating, market benchmarking and budget, and is what most people mean when they ask about their "annual hike". A promotion-linked raise is a separate, usually larger jump tied specifically to a change in role, level or title, and can be considerably higher than either a routine increment or a standard annual hike, since it reflects a genuine change in responsibility rather than a cost-of-living or performance adjustment within the same role.
What actually decides your hike percentage
Four factors typically drive the number a company settles on: the organisation's overall salary increase budget for the cycle (often set well before individual ratings are finalised), your individual performance rating within that cycle, how your current pay compares to the market rate for your role (a below-market salary often gets a larger correction), and, for many companies, a comparison against internal pay bands for your level. Two employees with an identical performance rating can still receive different hike percentages if one started the cycle below the market rate for their role and the other was already at or above it, since compa-ratio corrections are a common (if rarely disclosed) input into the final number.
Frequently asked questions
How do I calculate a 10% salary hike?
What is a good salary hike percentage in India?
Does a salary hike apply to CTC or in-hand salary?
How do I find the percentage increase between two salaries?
Can this calculator handle a salary decrease?
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