What exactly is CTC?

Before diving into the percentage, let’s clear the air on CTC (Cost to Company). Unlike your Take-Home salary, CTC is the total amount an employer spends on you in a year.

A salary hike is exciting, but knowing the exact percentage increase helps you understand your real income growth. Just comparing salary amounts is not always enough.

This Salary Hike Percentage Calculator lets you quickly calculate your increment by entering your old and new salary. It helps you track salary growth, compare offers, and plan your finances easily.

So, Calculate your salary hike percentage in CTC instantly. Compare old vs new salary, know exact increment %, and plan your finances easily with this free online calculator.

The Salary Hike Formula

Calculating your hike percentage is a straightforward mathematical process. To find out how much your “market value” has increased, use the following formula:

$$Hike \% = \left( \frac{\text{New CTC} – \text{Current CTC}}{\text{Current CTC}} \right) \times 100$$

Example Calculation:

If your current CTC is ₹10,00,000 and your new offer/increment brings it to ₹13,00,000:

1. Difference: $13,00,000 – 10,00,000 = 3,00,000$
2. Divide by Current: $3,00,000 / 10,00,000 = 0.3$
3. Percentage: $0.3 \times 100 = 30\%$

How to Use the CTC Hike Calculator

Using an online calculator saves you the manual math and ensures accuracy. Here is how to navigate it:

1. Select Mode: Choose whether you want to find the Percentage (if you know both salaries) or the New CTC (if you were told a specific percentage, e.g., You’re getting a 15% hike).
2. Enter Current CTC: Input your total annual package before the hike.
3. Enter New CTC / Hike %: Depending on the mode, enter the second value.
4. Instant Result: The calculator will immediately show you the Absolute Increase (the rupee amount) and the final result.

How to Calculate Salary Hike Percentage

Calculating your salary hike percentage is simple. You just need your old salary and your new salary.

✅ Formula

Salary Hike % =$$\frac{\text{New Salary} – \text{Old Salary}}{\text{Old Salary}} \times 100$$

Step-by-Step Method

1️⃣ Subtract old salary from new salary
2️⃣ Divide the result by old salary
3️⃣ Multiply by 100

💡 Example

Old Salary = ₹5,00,000
New Salary = ₹6,00,000

Step 1: 6,00,000 − 5,00,000 = 1,00,000
Step 2: 1,00,000 ÷ 5,00,000 = 0.20
Step 3: 0.20 × 100 = 20% Hike

So, your salary increased by 20%.

You can also use our Salary Hike Percentage Calculator to instantly calculate your increment without manual steps. Just enter old and new salary to get the result in seconds.

Quick Reference: Hike Benchmarks

Wondering if your hike is good? While it depends heavily on your industry and performance, here are some common benchmarks:

Hike Percentage	Assessment	Common Scenario
5% – 8%	Standard/Inflation Adjustment	Average performance in a stable year.
10% – 15%	Above Average	Strong performance or high-growth company.
20% – 35%	Substantial	Typically seen during a job switch or promotion.
50% +	Exceptional	High-demand niche skills or major career pivot.

A Note on Net vs. Gross

Remember: A 30% hike in CTC does not always mean a 30% hike in your monthly take-home pay.

If your new CTC moves you into a higher tax bracket, or if the employer increases the Indirect Components (like a higher PF contribution), your monthly cash-in-hand might increase by a smaller margin than the total CTC suggests. Always ask for a Salary Breakup during negotiations to see the monthly impact.

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