Salary Hike Calculator
See how much of a CTC hike actually reaches your monthly in-hand pay.
Your inputs
This is an estimate: it splits your CTC hike into a fixed portion and a variable/bonus portion using the ratio you set, then applies a flat deduction rate you set to approximate tax + PF on the fixed increase. It doesn't replace an exact income-tax calculation — use our Income Tax Calculator for that.
Current vs new offer
A neutral side-by-side — this compares the numbers only, not whether the move is otherwise a good idea.
| Current | New | |
|---|---|---|
| Annual CTC | ₹8,00,000 | ₹9,60,000 |
| Guaranteed monthly in-hand | ₹46,000 | ₹53,467 |
How the fixed/variable split changes your real hike
The same headline CTC hike can translate into very different guaranteed monthly increases depending on how much is fixed pay versus variable/bonus.
| Assumption | Guaranteed monthly increase |
|---|---|
| Mostly fixed pay, low deduction | ₹9,600 |
| Balanced (typical) | ₹7,467 |
| Heavy variable pay, high deduction | ₹5,200 |
Estimates only. Figures are indicative and do not constitute financial advice.
About the Salary Hike Calculator
"I got a 25% hike" sounds exciting until payday, when the actual increase in your bank account turns out to be a much smaller percentage — and most salary hike calculators don't explain why, because they just multiply your current salary by the hike percentage and stop there. That headline number is your CTC (cost-to-company) increase, not your real take-home increase.
Two things eat into the gap: first, a growing share of raises these days comes as variable pay or bonus rather than fixed monthly salary, so part of your "hike" isn't guaranteed monthly cash at all. Second, as your fixed pay rises, tax and PF deductions take a bigger bite out of the increase itself. This calculator models both — you set what share of your hike is variable versus fixed, and an estimated deduction rate on the fixed increase — so you get a realistic guaranteed monthly increase alongside the headline percentage, not just the gross CTC math. Use it when comparing a raise or offer, so you're negotiating against the real number, not the one HR announces.
How to use this calculator
- Enter your current and new annual CTC.
- Enter your current monthly in-hand pay.
- Set how much of the hike is variable/bonus versus fixed pay.
- See your real guaranteed monthly increase, not just the headline hike %.
Frequently asked questions
›How to calculate salary increment percentage?
Salary increment percentage = ((New salary − Old salary) ÷ Old salary) × 100. For example, a hike from ₹8,00,000 to ₹9,20,000 CTC is a (9,20,000 − 8,00,000) ÷ 8,00,000 × 100 = 15% increment — but that's the CTC increase, not your real in-hand increase, which this calculator works out separately.
›Why is my in-hand increase smaller than my hike percentage?
Hike percentages are calculated on CTC, which includes variable pay, bonuses, and employer contributions that don't all show up in your monthly bank credit — plus tax and PF take a growing share as your fixed pay rises.
›Is salary hike calculated on gross or in-hand salary?
Hike percentages are almost always applied to your gross annual salary or CTC, not your in-hand (take-home) salary, which is why the actual monthly take-home increase is usually smaller in percentage terms.
›What is a good salary hike percentage in India?
It varies widely by industry, role, and whether it's an internal appraisal versus a job switch — internal hikes commonly range 8-15%, while switching companies can sometimes deliver considerably higher percentage increases.
›Should I trust the headline hike % when comparing two job offers?
No — compare the real guaranteed monthly in-hand figure instead, since two offers with the same headline hike % can differ a lot in variable-pay mix and actual monthly cash you can rely on.
What affects salary hike?
- Fixed vs variable split
- Only the fixed-pay portion of a hike is guaranteed monthly cash — a hike that's mostly bonus/variable pay delivers a smaller guaranteed monthly increase than the same headline % on mostly-fixed pay.
- Tax and PF deduction on the increase
- As fixed pay rises, tax and PF take a growing share of the increase itself, not just your existing salary.
- Current in-hand baseline
- The same CTC hike produces a different guaranteed monthly increase depending on how your current pay is already structured.
Related calculators
Read the full guide
Why a 20% Salary Hike Doesn't Mean 20% More In-Hand Pay