Salary hike calculator: what does your hike really add to your pay?

Hike % = (new CTC − current CTC) ÷ current CTC × 100. For example, going from ₹8,00,000 to ₹9,20,000 a year is (9,20,000 − 8,00,000) ÷ 8,00,000 × 100 = 15%. To go the other way, new CTC = current CTC × (1 + hike % ÷ 100), so a 10% hike on ₹10,00,000 gives ₹11,00,000. That percentage is exact. What the hike adds to your monthly in-hand pay is an estimate, because it depends on how your CTC is structured and taxed. This calculator works it out on stated assumptions you can see on the page.

As a reference point, Aon's Salary Increase and Turnover Survey 2025-26 projects an average increase of 9.1% for India in 2026, up from an actual 8.9% in 2025, and Mercer's Total Remuneration Survey projects a 9% median. These are employer projections for annual appraisals, averaged across industries. Your own figure will depend on your sector, your performance rating and where you sit in your pay band, so treat them as context, not a target or a promise. A job switch is a different conversation: the offer is negotiated against the market rate for the new role, not against appraisal averages.

Three things take a share of the extra CTC before it reaches your account. First, PF: your employer's 12% of Basic is part of CTC, and your own 12% is deducted from pay. Second, the gratuity provision, which sits in CTC but is only paid out when you leave. Third, income tax: the extra income is taxed at your top slab rate, not your average rate. If neither salary pays income tax, take-home rises by roughly the same percentage. Once tax applies, the gap opens. On this calculator's default assumptions, a 10% hike on ₹24L CTC raises take-home by about 8.2%, because most of the extra is taxed at the 25% slab plus cess. These are estimates; your payslip structure decides the real figure.

Hikes are usually quoted as a percentage of CTC, often fixed CTC only, with variable pay or bonus revised separately, so ask HR which base the figure applies to. Basic matters because PF (12% of Basic) and gratuity (about 4.81% of Basic) are both calculated on it. If a revision also moves more of your CTC into Basic, more of the hike goes to PF and gratuity and less lands in monthly take-home. This calculator assumes Basic stays at 50% of CTC before and after the hike. To try a different split, use the CTC to in-hand salary calculator.

It depends on your regime and slab. Under the new regime (FY 2026-27), a salaried employee pays no income tax up to ₹12.75 lakh of gross salary, thanks to the ₹75,000 standard deduction and the Section 87A rebate. Above that, extra income is taxed at slab rates from 5% to 30%, plus 4% cess. The old regime has different slabs and keeps deductions such as HRA and 80C. This calculator shows the estimated extra income tax on your hike as its own line, and flags when the hike takes you from paying no income tax to paying some. In the old regime it counts only the standard deduction and your own EPF under 80C, so if you claim rent, 80C investments or home-loan interest, your real tax will be lower. It isn't tax advice.

Negotiate in CTC, because that's the figure offer letters and appraisal letters use, but decide in monthly take-home, because that's what pays your bills. Before the conversation, work out what a given CTC means per month after tax and PF, and the hike percentage you're actually being offered. Ask for the full salary breakdown, since a bigger Basic or a larger variable component changes your in-hand pay even at the same headline CTC. Compare any two numbers on the same assumptions. Treat every in-hand figure here as an estimate to check against the employer's own breakdown, not a guarantee.