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Appraisal SeasonGot a hike? Know what your revised CTC actually means in-hand before accepting.Calculate new in-hand →

Salary hike calculator

Compute absolute and percentage change between two annual figures (typically CTC or gross). This is simple arithmetic — not a forecast of in-hand impact.

Reviewed July 2026 · Tax Year 2026–27 (FY 2026–27) tax slabs in engine · Methodology

If old CTC is zero, percentage hike is not meaningful — we show a warning. See accuracy card for definitions.

Required inputs

  • Old annual amount (₹)
  • New annual amount (₹)
Enter both figures to see the hike in ₹ and %.

Assumptions used by this estimate

  • Percentage change is computed as (new − old) ÷ old when old is greater than 0.
  • Use the same definition for "CTC" in both boxes (gross vs net definitions mix easily).

Worked example (same engine as live calculator)

Engine snapshot: old ₹12,00,000/year → new ₹14,40,000/year → increase ₹2,40,000/year (20%).

FAQ

Does this include variable pay?

Only if you include variable pay consistently in both old and new numbers.

Salary hike in India: annual increase is not monthly in-hand

A quoted salary hike normally compares two annual amounts. The same percentage means very different rupee increases depending on the starting amount: a 30% increase on ₹6 LPA is ₹1.8 lakh a year (₹15,000 a month before deductions), while a 30% increase on ₹15 LPA is ₹4.5 lakh a year (₹37,500 a month before deductions). Both are arithmetic differences, not predicted take-home.

This tool returns the annual rupee change and percentage change only. It does not calculate revised income tax, employee PF, professional tax or net salary. To compare take-home, enter your before-and-after pay separately into the CTC-to-in-hand calculator with comparable assumptions. Keep CTC versus gross salary definitions consistent.

An appraisal may change fixed pay within an existing salary structure, while a new employer may include different employer-side contributions or a different fixed-versus-variable split in its CTC. Request both written breakups before assuming that a larger percentage increase produces a proportionate increase in monthly cash.

  • Annual rupee increase = new annual amount minus old annual amount.
  • Hike percentage = annual increase ÷ old annual amount × 100, when the old amount is above zero.
  • Compare gross with gross, or CTC with CTC; do not mix definitions.
  • Ask which parts of revised CTC are fixed, variable and employer-side costs.
  • Use a separate take-home estimate to factor in tax, employee PF and professional tax.

Related guides

Spotted a wrong number or confusing label? Report a calculation error — every report gets checked against the engine.

What a salary hike percentage does — and does not — tell you

This calculator measures the difference between two annual amounts: (new − old) ÷ old × 100 for the percentage, and new − old for the annual rupee increase. Enter CTC in both fields or gross salary in both fields. Mixing the two makes the comparison misleading.

A percentage increase is not a take-home-pay forecast. CTC can include employer PF, gratuity, insurance and variable compensation; gross pay is different again from cash received after employee PF, professional tax and income tax. None of those components is calculated here.

Worked example: ₹12 LPA to ₹15 LPA annual gross

Suppose both amounts are annual gross salary, not CTC. Increasing gross from ₹12,00,000 to ₹15,00,000 gives an exact ₹3,00,000 annual increase, or a 25% hike. The monthly gross equivalent changes from ₹1,00,000 to ₹1,25,000: an increase of ₹25,000 before deductions.

Those figures do not establish a monthly in-hand increase. To estimate it, run the CTC-to-in-hand calculator twice in gross salary mode, once for each annual amount, using comparable PF, professional-tax and tax-regime inputs. Your employer's actual payroll deductions may differ.

Why take-home can change differently from the headline hike

  • Salary definition: An increase in CTC can include higher employer-side costs; it is not necessarily the same increase in annual gross or fixed cash salary.
  • Taxable income: Income-tax calculations depend on taxable income, regime and eligibility — not the hike percentage. In the FY 2026–27 new regime, the ₹12 lakh rebate benchmark is based on eligible taxable income, not ₹12 lakh CTC. Marginal relief can apply just above that threshold; it is not an automatic jump to full slab tax.
  • Payroll components: Employee PF, state professional tax, variable pay and the fixed-versus-variable split can make two otherwise similar offers produce different monthly payouts.

What to confirm before accepting an appraisal or joining offer

  • Request the current and revised annual fixed gross amounts, separately from headline CTC.
  • Ask which employer-side contributions are counted inside the CTC figure.
  • Confirm the employee PF calculation basis and expected professional-tax deduction.
  • Separate guaranteed fixed cash from conditional bonus, incentives and other variable pay.
  • Compare estimated monthly in-hand using the same tax and payroll assumptions for both cases.

Use the hike percentage here for an apples-to-apples arithmetic comparison, then check actual take-home using the dedicated salary calculator and your written salary breakup.