What this calculator covers
- Hike percentage from an old and new CTC figure
- The new CTC that a target hike percentage works out to
- Absolute annual and monthly increase in rupees
- A reminder that CTC hike and in-hand hike are not the same number
FREE TOOL
Salary Hike Calculator
Enter your old and new CTC to get the exact hike percentage — or enter a target percentage to see the new CTC it works out to.
Built for appraisal season and offer negotiations at Indian tech companies.
Salary details
Annual CTC, in ₹.
Result
Current CTC₹0
New CTC₹0
Absolute increase₹0
Hike percentage
0%
Monthly CTC increase: ₹0/month
This compares CTC to CTC. Actual in-hand increase depends on how the raise is split across Basic, HRA, and fixed employer contributions — use the salary calculator to see the take-home effect.
Why the hike percentage on paper can mislead
An appraisal letter usually states the hike against CTC, which bundles in employer PF contribution, gratuity provisioning, and sometimes a variable or retention component that isn't guaranteed every month. Two employees can both get a "20% hike" and see very different changes in their bank balance, depending on how that increase is split between Basic, HRA, and fixed employer costs. Run the new CTC through the salary calculator to see the real in-hand number before treating a hike percentage as the full story. For a switch that also involves a new offer, the offer letter generator formats a CTC breakup alongside it. Clan's payroll plans run appraisal cycles and revised CTC straight into the next payroll run, so a hike doesn't need a manual payroll update.
How salary hike is calculated
| Component | Formula | Notes |
|---|---|---|
| Hike percentage | ((New CTC − Old CTC) ÷ Old CTC) × 100 | Always calculated on CTC, not in-hand pay. |
| New CTC from a target % | Old CTC × (1 + hike % ÷ 100) | Useful when negotiating toward a specific percentage. |
| Monthly increase | (New CTC − Old CTC) ÷ 12 | A CTC-level figure, not the in-hand monthly change. |
This tool compares two CTC figures only. It does not compute tax, PF, or ESI — use the salary calculator for the in-hand breakdown of either figure.
Frequently Asked Questions
What is the formula for salary hike percentage?
Salary hike percentage = ((New CTC − Old CTC) ÷ Old CTC) × 100. For example, a jump from ₹6,00,000 to ₹7,20,000 is a hike of (1,20,000 ÷ 6,00,000) × 100 = 20%.
Is salary hike calculated on CTC or in-hand salary?
Almost always on CTC (cost to company), not in-hand pay. Appraisal letters and offer letters quote the hike percentage against the full CTC figure, which includes components like PF employer contribution and gratuity that never reach the employee's bank account — so the in-hand increase is often smaller than the quoted hike percentage.
What is a good salary hike percentage in India?
It depends on whether the hike is an annual appraisal or a job switch. An appraisal hike and a job-switch hike are different events with different typical ranges, and both vary by company, role, and individual performance rating — treat any single India-wide average as a rough guide, not a benchmark to negotiate against.
Does a higher hike percentage always mean a higher take-home increase?
Not necessarily. A hike delivered mostly through fixed CTC additions like employer PF or a retention bonus with conditions attached can raise the percentage without moving monthly in-hand pay by the same proportion. Run the new CTC through a salary calculator to see the actual in-hand change, not just the headline percentage.
How is this different from the salary calculator?
This tool only compares two CTC figures to find the hike percentage or the new CTC target. For the full in-hand breakdown of a salary — PF, ESI, professional tax, and old vs new tax regime — use the salary calculator.