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New salary from a percentage, or percentage from two figures

Salary Hike Calculator

A salary hike, appraisal increment, or promotion raise is usually quoted as a percentage. This calculator works both directions: enter your current salary and a hike percentage to see your new salary, or enter your old and new salary to see the exact percentage increase, whichever direction matches the number you actually have.

Current salary โ€“
Increase amount โ€“
New salary โ€“ Enter your salary to see the result.
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How a salary hike is calculated

A hike percentage is applied to your current annual CTC or salary, not to your monthly figure specifically, since that is how most Indian appraisal cycles quote it. The formula is straightforward: new salary equals current salary plus (current salary multiplied by the hike percentage). A 15% hike on a Rs 8,00,000 salary, for example, adds Rs 1,20,000, for a new salary of Rs 9,20,000.

Typical hike ranges in India

Annual appraisal hikes in India commonly fall in the 8-15% range for an average performer at a stable company, with top performers, promotions, or a job change often landing considerably higher, sometimes 20-40% or more for a switch to a new employer. There is no fixed rule and figures vary widely by industry, company performance, role seniority and individual rating, so treat any single percentage as a starting reference point rather than a guarantee.

Three worked examples

Current salaryHike %IncreaseNew salary
Rs 6,00,00010%Rs 60,000Rs 6,60,000
Rs 8,00,00015%Rs 1,20,000Rs 9,20,000
Rs 12,00,00025%Rs 3,00,000Rs 15,00,000

Once you have your new salary figure, remember it is usually still a CTC number rather than what actually lands in your account each month: the in-hand salary calculator converts it the rest of the way, and a higher CTC can also shift you into a higher tax bracket, so it is worth checking your new take-home figure directly rather than assuming it scales by exactly the same percentage as the hike.

Working out the percentage from two salary figures

If you already know both your old and new salary, perhaps from an appraisal letter that only states the two rupee figures, switch the calculator above to "Hike percentage from old and new salary". The formula is the increase amount divided by the old salary, multiplied by 100: for example, a jump from Rs 7,00,000 to Rs 8,40,000 is a Rs 1,40,000 increase, which works out to exactly 20%.

Why a hike does not always translate 1:1 to take-home pay

A 15% hike on your CTC does not necessarily mean a 15% increase in your monthly in-hand salary. Two effects can shrink the gap: first, if the hike pushes part of your income into a higher tax slab, a larger share of the increase is taxed away; second, since employer PF and gratuity provisions typically scale with basic pay (usually a fixed percentage of CTC), a bigger CTC also means more of the increase is routed into components you do not receive monthly. Neither effect reverses the benefit of a hike, but both mean the percentage increase you see in your take-home pay is often somewhat smaller than the percentage increase in your CTC. Run both your old and new CTC figures through the in-hand salary calculator below to see the exact gap for your own numbers, or check the income tax calculator directly if you already know your new gross salary.

Hike, increment and promotion: three different things

These three terms get used loosely, but they describe different events. An increment is usually a smaller, near-automatic annual step, often tied mainly to inflation and a standard performance rating, and can be as modest as 3-6% in a flat year. A hike, in everyday usage, more often refers to the full appraisal-cycle revision, which factors in company performance, individual rating, market benchmarking and budget, and is what most people mean when they ask about their "annual hike". A promotion-linked raise is a separate, usually larger jump tied specifically to a change in role, level or title, and can be considerably higher than either a routine increment or a standard annual hike, since it reflects a genuine change in responsibility rather than a cost-of-living or performance adjustment within the same role.

What actually decides your hike percentage

Four factors typically drive the number a company settles on: the organisation's overall salary increase budget for the cycle (often set well before individual ratings are finalised), your individual performance rating within that cycle, how your current pay compares to the market rate for your role (a below-market salary often gets a larger correction), and, for many companies, a comparison against internal pay bands for your level. Two employees with an identical performance rating can still receive different hike percentages if one started the cycle below the market rate for their role and the other was already at or above it, since compa-ratio corrections are a common (if rarely disclosed) input into the final number.

Frequently asked questions

How do I calculate a 10% salary hike?
Multiply your current salary by 0.10 to get the increase amount, then add that to your current salary. For a Rs 5,00,000 salary, a 10% hike adds Rs 50,000, for a new salary of Rs 5,50,000.
What is a good salary hike percentage in India?
There is no single standard figure. A typical annual appraisal hike for an average performer commonly falls in the 8-15% range, while promotions or switching employers can bring considerably higher increases, sometimes 20% or more. It varies substantially by industry, company, role and individual performance.
Does a salary hike apply to CTC or in-hand salary?
Appraisal and offer letters almost always quote a hike percentage against your CTC (Cost to Company) figure, not your monthly in-hand pay. Because employer PF, gratuity and tax can all scale differently as your CTC rises, your actual in-hand pay increase is often a slightly smaller percentage than the headline CTC hike.
How do I find the percentage increase between two salaries?
Subtract the old salary from the new salary to get the increase amount, then divide that by the old salary and multiply by 100. Switch the calculator above to that mode and enter both figures directly for an instant result.
Can this calculator handle a salary decrease?
Yes. If your new salary is lower than your old one, the percentage mode shows a negative percentage, labelled clearly as a decrease rather than a hike.

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