A salary hike calculator does two sums. New salary = current salary × (1 + hike ÷ 100). Hike % = (new salary − current salary) ÷ current salary × 100. Type your current yearly salary and either the hike you were offered or the new figure, and it shows both. Then check which salary the hike is on: a 30% hike on CTC can be closer to 15% on the fixed pay that reaches your account each month.
Salary hike calculator
Works in any currency. Gross figures: take-home depends on tax and deductions.
This is arithmetic only. Your offer letter and the company's HR policy decide what counts as salary, what is fixed and what is paid later.
How to calculate salary hike percentage
Salary hike percentage, by hand
- 1
Put both salaries on the same basis
Yearly CTC against yearly CTC, or monthly fixed against monthly fixed. Mixing them is the most common way a hike gets overstated.
- 2
Subtract the old from the new
₹10,00,000 − ₹8,00,000 = ₹2,00,000.
- 3
Divide by the old salary
₹2,00,000 ÷ ₹8,00,000 = 0.25.
- 4
Multiply by 100
0.25 × 100 = a 25% hike. To go the other way, ₹8,00,000 × 1.25 = ₹10,00,000.
What a 20%, 30% or 50% hike means in rupees
Percentages hide how different the same hike feels at different salaries. The monthly figure in brackets is the extra gross pay per month if the whole increase were fixed salary. Tax and deductions come off that, so the in-hand gain is smaller.
| Current CTC | +20% | +30% | +50% |
|---|---|---|---|
| ₹4 LPA | ₹4.8 LPA +₹6,667 a month | ₹5.2 LPA +₹10,000 a month | ₹6 LPA +₹16,667 a month |
| ₹6 LPA | ₹7.2 LPA +₹10,000 a month | ₹7.8 LPA +₹15,000 a month | ₹9 LPA +₹25,000 a month |
| ₹10 LPA | ₹12 LPA +₹16,667 a month | ₹13 LPA +₹25,000 a month | ₹15 LPA +₹41,667 a month |
| ₹18 LPA | ₹21.6 LPA +₹30,000 a month | ₹23.4 LPA +₹45,000 a month | ₹27 LPA +₹75,000 a month |
| ₹30 LPA | ₹36 LPA +₹50,000 a month | ₹39 LPA +₹75,000 a month | ₹45 LPA +₹1,25,000 a month |
Arithmetic only. Monthly figures are the yearly increase divided by 12, before tax.
Source: Worked example, HiddenRoles
Hike on CTC vs hike on fixed pay
CTC (cost to company) is everything the employer spends on you in a year. It often includes variable pay that depends on ratings, the employer's PF contribution, gratuity, insurance, and in the first year a joining bonus. None of that is a bigger monthly salary. So when HR says "we're giving you a 30% hike", ask: 30% on what?
In this example the offer is a 30% hike on CTC. But fixed pay goes from ₹9 lakh to ₹10.4 lakh, which is 15.6%. In monthly terms that's ₹75,000 to about ₹86,700 gross, not the roughly ₹1,08,000 a month you get by dividing ₹13 LPA by 12. The rest is variable pay you may or may not get in full, and a joining bonus that disappears from next year's CTC.
How big is a normal salary hike in India?
For annual appraisals there is decent published data. Aon's Annual Salary Increase and Turnover Survey for India, which covers more than 1,400 organisations, projected an average increase of 9.1% for 2026, up from 8.9% actually paid in 2025. It also varies a lot by industry, as the chart shows.
Annual increments for people who stay, not job-switch hikes
| Real estate and infrastructure | 10.2% |
| NBFCs | 10.1% |
| Automotive | 9.9% |
| Engineering design services | 9.9% |
| Retail | 9.5% |
| Engineering and manufacturing | 9.5% |
| Tech platforms and products | 9.4% |
| Global capability centres | 9.3% |
| Banking | 8.8% |
| E-commerce | 8.8% |
| Life insurance | 8.2% |
| Tech consulting and services | 6.6% |
Source: Aon Annual Salary Increase and Turnover Survey 2025-26 India (press release, Feb 24, 2026)
Job-switch hikes are a different thing, and we haven't found a reliable published survey of them, so we won't quote a "normal" switch hike. Figures that float around online rarely say where they come from. Our own data can't fill the gap either: Indian postings rarely publish pay. In the 30 days to November 7, 2026, fewer than 3 in 100 India postings in our feed named a usable salary. Among fresher and intern roles that did state pay in rupees (only 57 postings), the median was about ₹4.4 LPA.
With so little pay published, the hike percentage tends to become the yardstick instead: HR knows your current CTC, and you rarely know their budget. The fix is to bring a number for the role, not just a percentage on your last salary.
How to ask for a hike when you switch jobs
When HR asks "what hike are you expecting?", answer with a figure for the role and show the percentage as a by-product. A percentage invites them to apply it to your total CTC, joining bonus and all. A fixed-pay number doesn't. If you're underpaid today, the percentage may look large. That's fine: say why the role is worth the number. Our salary negotiation scripts cover the email and the call back, and our desired salary guide covers the expected CTC box on the application form.
I'm looking at a fixed CTC of ₹[X] LPA for this role, based on [the scope of the role / what similar roles are paying / the offer I have in hand]. On my current fixed pay of ₹[Y] LPA, that works out to about [N]%. I'm flexible on how the variable part is structured.
Hi [manager], Ahead of the appraisal discussion, I wanted to share a short note on my year: - [Result 1, with a number] - [Result 2, with a number] - [New responsibility you took on] Given this, I'd like to discuss a revision of my fixed pay to ₹[X] LPA, and what I would need to show to reach [next role] by [date]. Could we set aside 20 minutes for this before ratings are finalised? Thanks, [Your name]
The appraisal email works best two to four weeks before ratings close, while there is still budget to move. If your notice period is long, the new employer may balk at the wait. Our notice period buyout calculator tells you what an early release would cost, so you can ask for it to be covered.
Questions people ask
Is the hike calculated on CTC or in-hand salary?
Offers are usually quoted as a hike on CTC. In-hand pay depends on tax, PF and other deductions, so the in-hand rise is almost always a smaller percentage. Compare fixed pay to fixed pay for the clearest picture.
Does variable pay count in the hike?
Most offer letters include it in CTC, so it inflates the headline hike. It is paid only if targets and ratings allow, often once or twice a year. Treat it as a bonus, not as salary.
Is a 30% hike good when switching jobs?
It depends on where your current pay sits against the new role. A 30% hike can still leave you underpaid if you were low to begin with, and 15% can be generous if you were already near the top. Judge the new fixed pay against the role, not the percentage.
Can HR refuse a hike above a certain percentage?
Some HR teams work to an internal cap on the hike over current CTC. If you hit one, ask whether it applies to fixed pay or total CTC, and whether a joining bonus or an early review can close the gap.
How do I calculate my new monthly salary after a hike?
Apply the hike to your yearly fixed pay and divide by 12 for monthly gross. Your payslip will then subtract PF, professional tax and income tax, so use a take-home calculator for the final in-hand figure.