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All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
Enter current pay and the increment percentage to see the revised monthly and annual figure, and the rupee difference the hike makes.
Increment letters usually state a percentage, while employees and finance teams think in rupees. This salary hike calculator converts one into the other, monthly and annually.
It also works in reverse: enter a target salary and it shows the percentage hike that target represents, which is useful when a counter-offer is quoted as a figure.
Enter your figures, then press Calculate
Your 3 inputs become a full breakdown, with every step of the working shown beneath the headline figures.
A hike is a percentage applied to a base. The only decision that changes the answer is which base you apply it to, so the method starts there.
Revised salary = Current salary × (1 + Hike % ÷ 100); Hike % = (Revised − Current) ÷ Current × 100
Apply the percentage to the same figure the increment letter names. A 10% hike on basic is a much smaller rupee increase than 10% on CTC.
Multiply current pay by one plus the percentage as a decimal.
Multiply the monthly figure by twelve. Annual components such as bonus or variable pay are not included unless they are in the base you entered.
What this does not include
Asked often enough about this calculation to be worth answering beside it.
Subtract the current salary from the new salary, divide by the current salary and multiply by 100. Enter both figures in the calculator and it does this for you.
Whatever the increment letter says. Many letters state the hike on CTC; some revise basic and let other components follow. Use the same base in the calculator that the letter uses.
Usually not exactly. PF, tax and other deductions change with the new structure, so the in-hand increase can be smaller or larger in percentage terms than the headline hike.
They compound. A 10% hike followed by another 10% is 21% over the original, not 20%, because the second hike applies to the already-revised figure.
A calculator applies a rule to figures you type in. A payroll run applies it to your actual employee record, your locations and your verified declarations, which is where Professional Tax, LWF and TDS also resolve.
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