How do I calculate my salary hike percentage?

Subtract your current CTC from the new CTC, divide by the current CTC and multiply by 100. Moving from ₹8,00,000 to ₹10,00,000 is a 25% hike. Compare like with like: both figures should include or exclude variable pay, joining bonus and other one-time amounts in the same way.

Why is my in-hand salary so much lower than CTC ÷ 12?

CTC includes items you do not receive monthly, such as employer PF, gratuity, insurance and variable pay. Your own PF contribution, professional tax and income tax are also deducted. That is why the in-hand figure here is only a rough estimate that you can tune with the deductions percentage.

What deduction percentage should I use for the in-hand estimate?

Look at a recent payslip: divide your net pay by your monthly CTC to see what share reaches your bank. Use the rest as the deduction percentage. It shifts with your tax regime, investments, PF on full or capped basic, and how much of your CTC is variable.

Should I negotiate on CTC or on in-hand salary?

Ask for both in writing. CTC is what offers are compared on, but fixed monthly pay is what you actually live on. Check how much of the new CTC is variable or one-time, and ask HR for a sample salary breakup before accepting. The calculator is free to rerun with each version of the offer.

Salary Hike Calculator – Percentage & New CTC

Hike percentage, new CTC and what reaches your bank

The hike percentage is simple maths: (new CTC − current CTC) ÷ current CTC × 100. The harder part is making sure both numbers mean the same thing. Before you compare an appraisal or a job offer, check:

Fixed versus variable pay — a performance bonus that depends on targets is not guaranteed.
One-time items such as a joining bonus or relocation allowance, which will not repeat next year.
Employer PF, gratuity and insurance, which sit inside CTC but never appear in your monthly credit.

Why the in-hand figure is only a rough estimate

Monthly in-hand salary depends on your salary structure, whether PF is on full or capped basic, professional tax in your state, the tax regime you choose, your investments and how much of the CTC is variable. This tool simply takes a percentage off CTC ÷ 12 — 20% by default — so you can see the direction and size of the change. For a closer figure, use your own payslip ratio and ask HR for the new salary breakup. This is general guidance, not tax advice.

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Worked example

Checking an appraisal letter

What goes in

Find: Hike % from current and new CTC Current CTC: ₹6,00,000, new CTC: ₹7,20,000 Deductions for in-hand estimate: 20%

What you get

The hike is (7,20,000 − 6,00,000) ÷ 6,00,000 × 100 = 20%, an increase of ₹1,20,000 a year or ₹10,000 a month in CTC. With 20% deducted, the rough monthly in-hand estimate moves from ₹40,000 to ₹48,000, an increase of about ₹8,000. The in-hand figure is labelled as rough because real take-home pay also depends on PF, professional tax, the tax regime and how much of the new CTC is variable. For a full breakdown of the new salary, the CTC to in-hand calculator gives the detail.

Common mistakes

Comparing the new CTC with the old in-hand salary, which makes the hike look much bigger than it really is.

Ignoring that part of the new CTC may be variable pay, so the guaranteed increase can be smaller than the hike percentage suggests.

Keeping the default 20% deduction when your payslip shows a very different share; divide your net pay by monthly CTC to set it properly.

When to use it: Use the hike calculator to check a percentage or find the CTC for a target hike; for an exact monthly take-home figure, use the CTC to in-hand calculator.

Free Salary Hike Calculator

Hike percentage, new CTC and what reaches your bank

Why the in-hand figure is only a rough estimate

Worked example

Checking an appraisal letter

Common mistakes

Frequently asked questions

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