When we get a new job offer or a salary hike, the first thing we notice is the big number in the CTC. It feels good seeing that higher package. But once the salary hits the bank, many of us wonder, “Why isn’t it as much as I thought?”
That’s because there’s a gap between CTC and what you actually take home after all the deductions like tax, PF, and other cuts.
This is the reality for many Indian salaried persons. From software engineers to government clerks, we often focus only on the CTC hike, but forget to calculate the real, usable salary hike. That’s where the Salary Hike Calculator comes in.
So, let’s understand this –
How Salary Hikes Impact Your Pay?
In India, the salary hike usually refers to an increase in your annual package known as CTC after the promotion, job switch, or annual appraisal. It can be expressed in percentage, or an exact amount of increase value.
According to Hindustan Times reports, the cabinet has gifted the DA was hiked by 2% in March 2025, raising the current Dearness Allowance for Central government employees to 55% of basic pay, effective January 1, 2025.
If you are govt employee, use this 8th Pay Commission Salary calculator.
To understand deeply, we have to dig into three components of salary:
- CTC (Cost to Company): It is the amount the company spends on you. Includes bonus, PF, gratuity, HRAetc.
- Gross Salary: Fixed pay before deductions and tax.
- In-Hand Salary: What you actually receive from the company after PF, tax, HRA, and deductions.
Let me give you an example –
| Component | Old (CTC: ₹6.2L) | New (CTC: ₹7.8L) |
|---|---|---|
| Basic + HRA | ₹45,000/month | ₹53,000/month |
| Bonus | ₹50,000/year | ₹60,000/year |
| PF & Deductions | -₹4,000/month | -₹4,600/month |
| In-Hand | ₹41,000/month | ₹47,200/month |
CTC Hike: 25% In-Hand Hike: ~15%
so,
Why This Hike Calculator Matters to You
A salary hike calculator is an online smart tool for calculating the hike percentage from the old and new salary, and it is used to find the new salary based on the desired hike.
By use of this, you can compare CTC vs in-hand growth, which helps to understand if you need to plan for tax changes or filing.
It’s perfect for:
- Job seekers
- Professionals switching roles
- Employees during annual appraisal cycles
How Important is this to you
- Job Hopping Culture: Frequent job changes need fast hike calculation and instant results; who waits for paper and pen calculations nowadays?
- Different Pay Structures: Variable pay vs fixed pay confusion, it makes it quite simple, just a few digits are required.
- DA (Dearness Allowance) & Gov Salary Revisions need clarity
- Advance Tax: If income crosses a threshold, QTR filing begins
- Inflation Impact: Real purchasing power vs nominal hike
How to use the calculator to calculate
- Take your pay slip and open the Easemoney Hike Calculator.
- Enter your current annual CTC or Gross salary (e.g., ₹8,00,000)
- In the Expected Hike Percentage (%) section, enter your number (example 10, 20, 30%)
- Tap on the Calculate New Salary button
- The tool instantly shows
- New salary
- Hike amount
- Growth chart or salary comparison graph
Tip for you: Enter gross/in-hand to get a deeper breakdown of your hike per cent.
How to Calculate the Percentage of Salary Hike
To find the percentage, tap on the Find percentage button on our tool and follow these simple steps –
- Enter your old salary, any one in-hand or CTC (monthly or annual)
- Enter the new salary amount, annual or monthly
- Tap on the Calculate button to view
- It shows you the required Hike percentage instantly.
It is Useful when switching jobs or verifying HR offers.
Formula with example
If you decide to calculate it by paper and pen, the calculation is quite simple, just use this formula –
Formula for Hike % = ((New Salary – Old Salary) / Old Salary) × 100
Here is a quick example for you –
- Your old salary = ₹6,00,000 and your new salary = ₹7,50,000
- Hike = ((7,50,000 – 6,00,000) / 6,00,000) × 100 = 25%
Let me share with you a quick real case study for hike in salary of an indian teacher
- Name: Kavita Sharma
- Role: High School Math Teacher
- Old CTC: ₹6.2 LPA
- New CTC: ₹7.8 LPA
Findings:
- CTC hike: 25%
- In-hand hike: 15%
- Tax bracket moved from 5% to 10%
- Net annual increase: ₹90,000
- Bonus was split quarterly, not annually
Lesson: Always compare net in-hand salary, not just CTC.
Use this Salary Hike Calculator on EaseMoney to see your real salary growth, benefits, percentage, and tax impact. It’s free, fast, and designed for Indian salaried individuals. It works on mobile, PC, laptop, and even Android TVs.
Additional FAQs
How is DA (Dearness Allowance) calculated in a salary hike?
DA is usually revised by the government twice a year for public sector employees and affects gross salary, not CTC.
Can a promotion result in no actual in-hand hike?
Yes, sometimes extra responsibilities come with a title change, but variable components delay the in-hand benefit.
My bonus is part of CTC, should I count it in the hike?
Only if it’s guaranteed and not performance-linked, otherwise, focus on fixed pay.
How to calculate a 30% hike in salary?
To calculate a 30% salary hike, simply, you have to multiply your current salary by 1.30. For example, if your salary is ₹50,000, it becomes ₹65,000 after the hike. This method works for both monthly and annual salaries.
How to calculate a 10% hike in salary?
To find a 10% hike, you have to use paper and a pen to multiply your earnings by 1.10. For the Idea, ₹60,000 becomes ₹66,000 after the hike. This simple formula helps calculate your new salary without needing any special tool or calculator.
Is 20% a good salary hike?
Yes, it came in the Top tier, a 20% salary hike is considered very good in India. It often reflects strong performance, market demand, or a job change. In India, mostly hike rate is mostly just 4 to 12%, so 20% is above the average.
How much increase in bank salary after a hike?
Bank salary hikes usually range between 10 and 15%, depending on the pay scale. Let me give you an example: after a 12% hike, a ₹50,000 salary may become ₹56,000. It includes DA revision, perks, and other allowances.
Is a hike given on CTC?
Most companies ‘ salary hikes are usually calculated based on total CTC, however, the in-hand increase may vary depending on changes in bonuses, PF, or other
Does a 30% hike guarantee a 30% lifestyle improvement?
Not always. Taxes, inflation, and insurance premiums can reduce real gain.