Salary Hike Calculator

Hike percentage is (New CTC - Old CTC) / Old CTC x 100. The "effective" hike is the ratio of take-home gain to old take-home. Most employees focus on the latter because base CTC components (employer PF, gratuity provisioning) are not take-home income — only basic + special allowance truly impact the bank account.

No. Because of change in tax slab (new vs old regime), loss of deductions and additional professional tax, the take-home hike is usually 12-18% on a 30% gross CTC hike. The calculator surfaces the exact take-home lift so you know what you will actually feel on payday.

New employers rarely carry forward the Section 80C / 80D declarations and HRA exemptions from previous employers. The new employer deducts TDS without recognising previous deductions, and the employee must file Form 12BB on joining to claim them. The calculator assumes standard projections — actual TDS may be higher in months 1-3.

Mostly, yes, but not always. If the new CTC reduces employer contribution to NPS (Section 80CCD(2) up to 14% of basic for the employer, exempt in the hands of employee), the increase in taxable income may eat away the take-home. The calculator surfaces the impact of NPS contribution move as a separate line.

Compound Annual Growth Rate over N years is (Final CTC / Initial CTC)^(1/N) - 1. For example, moving from ₹10 lakh to ₹22 lakh over 5 years gives CAGR = (2.2)^(1/5) - 1 ≈ 17% — well above the 8-9% industry median. The calculator applies this formula for multi-year comparisons.

Industry-typical annual appraisal hikes range 8-12% in IT services, 10-15% in BFSI / consulting, 15-25% during promotion cycles, and 30-50% on job switches to similar roles. Significant hikes over 40% usually involve role change, ESOP vesting, or location move premium.