Basic Pay:
Dearness Allowance:
House Rent Allowance:
Travel Allowance:
Other Allowances:
Deductions:
Total Salary (Before Increment):
Total Salary (After Increment):
New Gross Salary:
Hike Percentage:
Net Salary:
Present Value (Inflation Adjusted):
Want to know your proposed salary after a raise? Or quickly check the percentage increase in your pay without doing manual calculations?
Use our Salary Hike Calculator — a simple tool that instantly shows your revised salary after appraisal, job switch, or promotion. It doubles as a salary increment calculator and a CTC hike calculator, giving you clarity on both monthly and annual pay.
A salary hike is an increase in your income, either as a fixed amount or a percentage. Employers give it during:
Unlike a bonus, which is a one-time payment, a hike permanently increases your base pay. This change impacts your long-term career growth and financial stability.
Our calculator works as a salary growth calculator and a post-appraisal salary calculator, helping you see the real change in your income.
Companies revise salary structures to:
These salary adjustments ensure employees feel valued and motivated.
Salary Hike = Permanent increase in base pay
Bonus = One-time payment (festival, performance, or profit share)
Hikes affect your future take-home salary, while bonuses do not change your base income.
Knowing the hike percentage helps you:
Use this easy formula to determine the percentage pay increase:
(New Salary - Old Salary) / Old Salary × 100
This tells you how much your salary has increased in terms of percentage.
Example 1:
You currently make ₹7,50,000, but you received a new offer of ₹9,00,000.
Hike percentage = ((9,00,000 - 7,50,000) / 7,50,000) × 100
20% is the hike percentage (1,50,000 / 7,50,000) × 100
Your earnings increased by 20%
Example 2:
Fixed ₹1.5 L Hike on ₹7 LPA
Assume that your employer offers you a fixed raise of ₹1.5 lakh in addition to your current salary of ₹7,00,000 annually.
Use the fixed increment formula to determine the percentage of the pay increase.
Formula:
Hike % = (Increment Amount / Current Salary) × 100
Hike % = (1,50,000 / 7,00,000) × 100
Hike % = 21.43%
Your salary has increased by 21.43% through a fixed hike of ₹1.5 LPA.
Understanding the math behind salary increases turns you into a more informed negotiator and consumer of your own money. Whether your raise will be in the form of a percentage or a fixed payout, the following formulas can help you calculate both your raise as a percentage and the dollar value of a pay hike.
Formula:
New Salary = Current Salary × (1 + Hike % / 100)
Example:
Current Salary = ₹8,00,000
Hike = 12%
New Salary = ₹8,00,000 × (1 + 12 / 100) = ₹8,96,000
Result: You get a new gross salary of ₹8.96 LPA.Use our hike percentage calculator to skip the math and get instant answers!
Sometimes, especially in startups or smaller firms, a fixed increment amount is offered instead of a percentage.
Formula: New Salary = Current Salary + Fixed Hike Amount
Example:
Current Salary = ₹7,00,000
Fixed Hike = ₹1,50,000
New Salary = ₹7,00,000 + ₹1,50,000 = ₹8,50,000
Result: That’s an absolute increase of ₹1.5L with a hike of ~21.43%.
For such cases, you can use our salary hike calculator to convert that number into a hike percentage easily.
The gross hike may look impressive, but your actual take-home depends on deductions and taxes.
Formula:
Net Salary = (New Gross Salary + Bonus – Annual Deductions) × (1 – Tax Rate / 100)
Inputs Needed:
Annual Bonus / AllowanceMonthly Deductions (like PF, loans, insurance)Tax Rate (in %)
Example:
New Salary = ₹9,00,000
Bonus = ₹50,000
Monthly Deductions = ₹5,000 → Annual = ₹60,000
Tax Rate = 20%
Net Salary = (9,00,000 + 50,000 – 60,000) × (1 – 0.20) = ₹7,16,000
Your net take-home salary would be ₹7.16 LPA
Even with a raise, your purchasing power can shrink if inflation is high.
Formula:
Inflation-Adjusted Salary = New Salary / (1 + Inflation Rate)^Years
Example:
New Salary = ₹10,00,000
Inflation Rate = 5%
Years = 1
Inflation-Adjusted = ₹10,00,000 / (1.05)^1 = ₹9,52,380
This means your ₹10L salary feels like ₹9.52L after accounting for inflation.
This is why our CTC hike calculator includes inflation projections to help you see the real value of your hike.
Inflation reduces your buying power. A 10% hike feels smaller if inflation is 6%. Our tool adjusts salary for inflation so you know the real value.
On average, it’s 8–12% annually. In high-demand industries like IT and finance, it may cross 15%.
Hike % shows increase on gross salary. But take-home salary depends on tax, PF, and deductions.
Yes! Add your bonuses, allowances, and deductions to see your new CTC and net pay.
Yes! Add your bonuses, allowances, and deductions to see your new CTC and net pay.
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