This salary increment calculator works out what a raise is actually worth, in both directions. Enter your current salary with a hike percentage and it returns the increase and your new salary. Enter your old and new salary instead and it returns the hike percentage. A third mode compounds a yearly hike forward so you can see where a salary lands after several appraisals. To turn the new figure into a monthly credit, carry it to the in-hand salary calculator, and to decode a revised offer letter use the CTC to in-hand calculator. No sign-up, and nothing you type leaves your browser.
| Step | Value |
|---|
| Year | Opening Salary | Increase | Closing Salary |
|---|
Each year opens at the previous year's closing salary, which is what compounding means here. A run of identical percentages is a shape to reason with, not a prediction of your appraisals.
A salary increment calculator answers the question an appraisal letter never quite answers in rupees: what did that percentage actually buy you. Type your current salary and the hike percentage and the tool returns the increase and the new figure. Switch the mode and it runs backwards, taking your old and new salary and returning the hike percentage, which is the calculation most people want the day the revised number lands. A third mode compounds a steady yearly hike forward, up to twenty-five years, so you can see how far a salary travels on ordinary appraisals rather than on one dramatic jump. Every mode shows its own working, and the monthly view sits beside the annual one because that is the number most people plan around.
What this page deliberately does not do is pretend a hike is take-home pay. The arithmetic here runs on whatever figure you type, so a percentage applied to CTC produces a CTC number, and a percentage applied to gross produces a gross number. Income tax, provident fund and professional tax all sit downstream of that, and a raise that crosses a tax band does not reach your bank in full. When you want the figure after tax, run the new salary through the post-tax salary calculator; for the monthly credit after every deduction, use the take-home salary calculator or the in-hand salary calculator. If your revised figure arrived as a CTC, split it first with the salary breakup calculator or the CTC to in-hand salary calculator. Everything here sits inside the wider set of salary calculators for India.
Pick a direction, type two numbers, and the working appears without a page reload.
Jump back to the salary increment calculator and run your own number.
The same starting salary of ₹9,00,000 a year at a modest, an average and a strong increment. Every figure below was produced by the calculator on this page, not written by hand.
| Step | 8% hike | 12% hike | 20% hike |
|---|---|---|---|
| Current annual salary | 9,00,000 | 9,00,000 | 9,00,000 |
| Increment percentage applied | 8.00% | 12.00% | 20.00% |
| Increase in rupees | 72,000 | 1,08,000 | 1,80,000 |
| New annual salary | 9,72,000 | 10,08,000 | 10,80,000 |
| Old monthly salary | 75,000 | 75,000 | 75,000 |
| New monthly salary | 81,000 | 84,000 | 90,000 |
| Increase per month | 6,000 | 9,000 | 15,000 |
Two things in that table repay a second look. The gap between an 8 percent and a 20 percent increment on the same salary is ₹1,08,000 a year, or ₹9,000 a month, which is the whole argument for treating the percentage as a negotiating number rather than a formality. And the monthly row is the one worth carrying into a conversation at home: a 12 percent hike on ₹9,00,000 reads as a large annual figure and lands as ₹9,000 a month, before a rupee of tax or provident fund is taken out. You can check the middle column backwards in the tool itself by switching to hike percentage mode and entering ₹9,00,000 and ₹10,08,000, which returns 12.00 percent. For what actually reaches the bank at the new figure, run ₹10,08,000 through the in-hand salary calculator, and to see how the gross figure is assembled from Basic and HRA use the salary breakup calculator.
A raise arrives as a percentage and gets spent as rupees, and the gap between those two forms is where most of the confusion lives. This page closes it in both directions. If your appraisal letter says twelve percent, the tool tells you what twelve percent is worth on your salary, annually and monthly. If your letter simply states a new figure, the tool tells you what percentage that represents, which is the number you need to compare this year against last year, or your offer against a colleague's.
The third mode answers a longer question. A single appraisal is easy to dismiss as small; ten of them are not. Compounding a steady yearly percentage forward shows how an ordinary run of increments moves a salary, and it makes the difference between an eight percent and a twelve percent culture visible in a way that one year never does. That is also the honest use of a salary growth calculator: not to predict your career, but to price the assumption you are already making about it.
What the page is not is a payslip, and the distinction matters more here than on most calculators. A percentage applied to a CTC gives you a CTC. Income tax, your provident fund contribution and professional tax all come out downstream, and none of them scales neatly with the raise. For the figure after income tax use the post-tax salary calculator, for the monthly credit after every deduction use the take-home salary calculator, and for the recruiter's version of the same number use the in-hand salary calculator.
The salary increment formula is two lines of arithmetic and there is nothing hidden in it. The increase is your current salary multiplied by the percentage divided by a hundred, and the new salary is the current salary plus that increase. Written out: increase equals current salary times percent over 100, and new salary equals current salary plus increase. Everything else on this page is that formula pointed in a different direction.
Two mistakes account for almost every wrong answer people reach by hand. The first is dividing by the new salary rather than the old one when working out a percentage: the increase is always measured against what you were on before, never against what you moved to. The second is adding percentages across years. Two consecutive ten percent hikes are not a twenty percent rise, they are twenty-one percent, because the second one applies to a salary that already grew. The tool handles both, but it is worth knowing which way the error runs, because both mistakes flatter the smaller number.
This is the calculation people actually want on appraisal day, and it is the one most tools leave out. Subtract the old salary from the new one, divide by the old salary, and multiply by a hundred. The mode selector on the calculator above does it for you and shows the raw division as its own row, so you can see the decimal before it becomes a percentage.
| Old Salary | New Salary | Increase | Increase ÷ Old | Hike Percentage |
|---|---|---|---|---|
| ₹4,50,000 | ₹5,40,000 | ₹90,000 | 0.2000 | 20.00% |
| ₹8,00,000 | ₹10,00,000 | ₹2,00,000 | 0.2500 | 25.00% |
| ₹12,00,000 | ₹13,80,000 | ₹1,80,000 | 0.1500 | 15.00% |
Every row above was produced by the reverse mode of the calculator on this page and then re-derived by hand, so the table and the tool cannot drift apart.
The same arithmetic answers the target question from the other end. If you know what you want to be earning, the percentage you need is the gap divided by your current salary. Going from ₹8,00,000 to ₹10,00,000 needs twenty-five percent, and seeing it stated that way is usually more useful than the rupee gap, because twenty-five percent is a number you can weigh against what your industry is paying this cycle. A salary increase calculator used this way is a preparation tool rather than a reporting one.
A single increment is a small number. Ten of them are not, and the reason is compounding: each year's percentage applies to a salary that already includes every previous raise. The table below starts at ₹12,00,000 and applies ten percent every year for ten years, with each row produced by the projection mode of the calculator on this page.
| Year | Opening Salary | Increase | Closing Salary |
|---|---|---|---|
| Year 1 | ₹12,00,000 | ₹1,20,000 | ₹13,20,000 |
| Year 2 | ₹13,20,000 | ₹1,32,000 | ₹14,52,000 |
| Year 3 | ₹14,52,000 | ₹1,45,200 | ₹15,97,200 |
| Year 4 | ₹15,97,200 | ₹1,59,720 | ₹17,56,920 |
| Year 5 | ₹17,56,920 | ₹1,75,692 | ₹19,32,612 |
| Year 6 | ₹19,32,612 | ₹1,93,261 | ₹21,25,873 |
| Year 7 | ₹21,25,873 | ₹2,12,587 | ₹23,38,461 |
| Year 8 | ₹23,38,461 | ₹2,33,846 | ₹25,72,307 |
| Year 9 | ₹25,72,307 | ₹2,57,231 | ₹28,29,537 |
| Year 10 | ₹28,29,537 | ₹2,82,954 | ₹31,12,491 |
The percentage never changes, but the increase grows from ₹1,20,000 in year one to ₹2,82,954 in year ten. Total growth over the decade is 159.37 percent, or roughly 2.59 times the starting salary, which is a good deal more than the 100 percent that ten lots of ten percent might suggest. The size of the yearly percentage matters enormously over that horizon: on the same ₹12,00,000, eight percent a year finishes at ₹25,90,710 and twelve percent finishes at ₹37,27,018. A four-point difference in the annual hike is worth over eleven lakh a year by year ten.
Read this as a shape, not a forecast. It assumes an identical percentage every single year, with no promotion, no job change and no year at zero, and no real career is that tidy. It also ignores inflation entirely, so the figures are nominal rupees rather than purchasing power.
A quick reference for the increments people are usually offered, across the salary bands people are usually on. Every figure was computed by the tool above rather than typed from a chart, so the page and the calculator can never disagree.
| Current Salary | 10% Hike | 15% Hike | 20% Hike | 30% Hike |
|---|---|---|---|---|
| ₹3,00,000 | ₹3,30,000 | ₹3,45,000 | ₹3,60,000 | ₹3,90,000 |
| ₹5,00,000 | ₹5,50,000 | ₹5,75,000 | ₹6,00,000 | ₹6,50,000 |
| ₹8,00,000 | ₹8,80,000 | ₹9,20,000 | ₹9,60,000 | ₹10,40,000 |
| ₹12,00,000 | ₹13,20,000 | ₹13,80,000 | ₹14,40,000 | ₹15,60,000 |
| ₹20,00,000 | ₹22,00,000 | ₹23,00,000 | ₹24,00,000 | ₹26,00,000 |
| ₹35,00,000 | ₹38,50,000 | ₹40,25,000 | ₹42,00,000 | ₹45,50,000 |
These are the new salary on the same basis you entered. They are not post-tax figures and they are not monthly credits.
Increment norms in India vary by industry, seniority, company size and the year, so the honest answer is a range rather than a number. The benchmarks below are directional, drawn from how appraisal cycles have typically run across these sectors rather than from any single year's survey.
| Industry or Sector | Typical Annual Hike | High Performer Range |
|---|---|---|
| IT and software, mid-size | 8% to 12% | 15% to 25% |
| IT and software, large multinational | 5% to 10% | 15% to 40% including stock |
| Banking and financial services, private | 8% to 15% | 20% to 35% |
| FMCG and consumer goods | 8% to 14% | 18% to 30% |
| Manufacturing | 6% to 10% | 12% to 20% |
| Startups, early stage | 0% to 8% | 20% and above, often with ESOPs |
| Government and public sector | Dearness allowance revisions | Pay commission cycles |
Two adjustments turn a benchmark into a judgement. The first is inflation. A hike is only a raise to the extent it outruns the rising cost of living, and a nominal increment below the prevailing inflation rate is a real-terms pay cut however good it looks on the letter. Consumer price inflation in India is published and updated regularly, and the Reserve Bank of India's data releases are the primary source to check the current rate against before you decide whether your increment was generous. Subtract that rate from your percentage and you have the number that actually matters.
The second is the alternative. Changing employers has historically delivered a larger jump in India than an internal appraisal does, which is why the internal number is best read next to what the market is paying rather than next to last year's. Promotions are usually budgeted separately from merit increases, so a promotion year can carry both and land well outside the ranges above. If you are weighing an external offer, work out the percentage it represents in the reverse mode of this salary appraisal calculator first, then decode the package itself with the CTC to in-hand salary calculator before comparing anything.
This is the single most common disappointment after a raise, and it is not a payroll error. A percentage applied to CTC lands on a figure that includes components you never receive as cash, and the amount that does reach you is then reduced by deductions that scale with the raise. Three of them do most of the work.
The tax point deserves one clarification, because it is widely misunderstood in both directions. Crossing into a higher tax band does not re-tax your existing salary at the higher rate; only the rupees above the boundary are affected, so a raise never leaves you worse off on the slab structure alone. What does produce a visible jump is the Section 87A rebate falling away, and under the New Regime that happens once taxable income passes ₹12,00,000, which for a salaried person is ₹12,75,000 of gross salary after the standard deduction. The law softens even that with marginal relief just above the threshold. The rupee figures belong to the pages built for them: use the post-tax salary calculator for the net figure at your new salary, the income tax calculator for the full tax detail including surcharge, and the old versus new tax regime calculator to check that the regime you chose is still the cheaper one at the new level.
Professional tax is the small one people forget. It is a state subject with a constitutional ceiling of ₹2,500 a year under Article 276(2), so it never scales meaningfully with a raise, but it does differ between states and can quietly change the comparison between two offers in two cities. The professional tax calculator handles the state rules.
Central government pay is revised through pay commissions rather than annual appraisals, and the mechanism at the centre of each revision is the fitment factor: a single multiplier applied to existing basic pay to arrive at revised basic pay. Because it is a multiplier, it converts directly into a hike percentage, which is the only part of the subject this page covers.
The arithmetic is the same formula as everywhere else on this page. A fitment factor of 2.00 applied to a basic pay of ₹50,000 gives revised basic pay of ₹1,00,000, which is a 100 percent increase in basic. Subtract one from the factor and multiply by a hundred and you have the percentage: a factor of 2.00 is a 100 percent hike on basic, a factor of 1.50 is a 50 percent hike. You can run any factor through the calculator above by entering your basic pay and that percentage.
Two honest limits. No fitment factor for the 8th Pay Commission has been notified, so any specific multiplier circulating is a projection rather than a decision, and the illustration above uses a round number purely to show the arithmetic. Separately, revised basic pay is not revised total pay: dearness allowance is reset at the same time and house rent allowance is recalculated on the new basic, so the change in your total salary is not the same as the change in your basic. This page deliberately stops at the percentage. It does not compute pay matrix levels, index cells or allowance recalculation, and a calculator that claims to do all that from a single basic figure is overreaching.
The short version, before the detail: this is exact percentage arithmetic on the number you type, with no statutory constants anywhere in it. Where it makes an assumption or stops short, it says so.
It multiplies and divides whatever you enter. If you type a CTC, every output is a CTC figure; if you type a gross annual salary, every output is gross; if you type a monthly number, every output is monthly. Nothing in the tool detects or converts between them, and it deliberately does not guess, because guessing wrong on a salary page is worse than asking you to be consistent. Keep both fields on the same basis and the answer is exact.
This page owns the percentage, not the deductions. A raise changes your income tax, your provident fund contribution and possibly your professional tax, and none of those changes is proportional to the hike. Rather than print a plausible net figure it cannot stand behind, the tool returns the gross change and names the pages that compute the rest: the post-tax salary calculator for income tax, and the take-home salary calculator for the full monthly picture.
Rupee outputs are rounded to whole rupees for display and percentages to two decimals, but the projection compounds on unrounded values and rounds only at the point of printing, so a twenty-five year run never accumulates rounding drift. The monthly figures are the annual figures divided by twelve. Real payroll is uneven, because tax deducted at source is spread unevenly across the year and arrears from a backdated increment often land in a single month, so treat the monthly number as an average rather than a prediction of any one credit.
It applies an identical percentage every year, with no promotion, no job change, no year at zero and no inflation adjustment. That is a useful thing to reason with and a poor thing to plan on. The value of the projection is comparative: it shows what a four-point difference in the annual percentage is worth over a decade far more clearly than any single year can. Read the final figure as nominal rupees, not purchasing power.
The page explains how a fitment factor converts into a hike percentage, because that is percentage arithmetic and it belongs here. It does not compute pay matrix levels, index cells, dearness allowance resets or house rent allowance recalculation, and no fitment factor has been notified for the 8th Pay Commission in any case. If you want the percentage a given factor implies, the tool will give it to you exactly. If you want a revised total salary from a pay matrix, this is not the page for it.
The arithmetic here is exact, but the benchmarks and the sector ranges are directional and the tax context is a summary of rules that the Finance Act can change at any Budget. Verify anything you are about to act on against your own appraisal letter, your payslip and the current assessment year. Nothing on this page is tax or financial advice, and for a decision with real money behind it a chartered accountant is worth the fee.
The people who get the most from this page are the ones holding two numbers and no easy way to compare them. Somebody whose letter states a revised salary but never a percentage, and who wants to know whether this year beat last year. Somebody weighing an internal increment against an external offer, where the only fair comparison is percentage against percentage rather than rupee against rupee. A manager splitting a fixed increment pool across a team and needing the rupee cost of each percentage before the conversation, not after it. Someone in government service working out what a fitment factor implies for basic pay. And anyone who has just been given a raise and wants the monthly figure rather than the annual headline, because the monthly one is what the household actually runs on. If your next question is what the new salary is worth after deductions, the take-home salary calculator is the honest next stop; if you are paid by the hour or by invoice rather than on an appraisal cycle, start instead at the hourly to salary converter or the freelance income calculator. If a raise is the reason you are now thinking about a loan, work the affordability from the take-home figure rather than the headline one. Everything sits inside the wider set of salary calculators for India.
Enter whichever figure your increment is actually applied to, and keep both fields on that same basis. If the letter says a hike on CTC, enter CTC. If it says a hike on basic, enter basic. The tool multiplies the number you give it and does not separate components, so the output is always in the same currency of meaning as the input. To split a package into its parts, use the salary breakup calculator.
Subtract the old salary from the new one, divide the result by the old salary, then multiply by a hundred. Going from six lakh to six lakh ninety thousand is an increase of ninety thousand, and ninety thousand divided by six lakh is 0.15, so the hike is 15.00 percent. Switch the mode selector on the calculator above to hike percentage and it does this for you, showing the raw division as its own row.
Use the same reverse calculation with your target as the new salary. The percentage you need is the gap divided by your current salary, times a hundred. To move from eight lakh to ten lakh, the gap is two lakh, and two lakh over eight lakh is 0.25, so you need twenty-five percent. Stating the requirement as a percentage is usually more useful in a negotiation than stating it in rupees.
No, and the difference is usually several thousand rupees a month. CTC includes employer provident fund and the gratuity provision, neither of which reaches your payslip, so part of any CTC hike lands on money you never see as cash. What does reach you is then reduced by income tax and your own provident fund contribution. For the monthly figure, run the new salary through the CTC to in-hand salary calculator.
Either works, as long as both fields use the same basis, because a percentage is scale free. Twelve percent on sixty thousand a month gives sixty-seven thousand two hundred a month, and twelve percent on the equivalent seven lakh twenty thousand a year gives eight lakh six thousand four hundred, which is the same sixty-seven thousand two hundred monthly. Annual is the usual basis in Indian appraisal letters, so it is the safer default.
It may, but that is far less damaging than it sounds. Only the rupees above a slab boundary are taxed at the higher rate, so your existing salary is never re-taxed and a raise cannot leave you worse off on the slab structure alone. The threshold that does produce a real jump is the Section 87A rebate falling away. The post-tax salary calculator puts an exact figure on it.
More than simple multiplication suggests, because each year compounds on the last. Ten consecutive hikes of ten percent multiply a salary by 2.59, not by 2, so twelve lakh becomes thirty-one lakh twelve thousand four hundred and ninety-one. The projection mode above runs this year by year for up to twenty-five years. Treat the result as a shape rather than a forecast, since it assumes an identical percentage every year with no promotion and no gap.
A fitment factor is a single multiplier applied to existing basic pay to produce revised basic pay, so it converts straight into a percentage: subtract one and multiply by a hundred. A factor of 2.00 is a hundred percent rise in basic. No factor has been notified for the 8th Pay Commission, so any specific number circulating is a projection. Revised basic is also not revised total pay, because dearness and house rent allowances are recalculated alongside it.
It depends heavily on sector and performance, so a range is more honest than a figure. Mid-size IT and services have typically fallen in the eight to twelve percent band, financial services somewhat higher, manufacturing somewhat lower, and early stage startups anywhere from zero upward. High performers commonly receive one and a half to two times the average. Compare your percentage against current consumer price inflation before deciding whether it was generous.
Put your current salary in A1 and the percentage in B1. The increase is =A1*B1/100 and the new salary is =A1*(1+B1/100). For the reverse direction, with the old salary in A1 and the new one in B1, the hike percentage is =(B1-A1)/A1*100. For a multi-year projection at a steady percentage, use =A1*(1+B1/100)^C1 where C1 holds the number of years. Format the percentage cells as numbers, not as percentages, or the maths doubles up.
Yes. Where this page refers to tax, it reflects the New Regime position for FY 2026-27, which is assessment year 2027-28: the Section 87A rebate removes all tax up to twelve lakh of taxable income, and the standard deduction for salaried taxpayers is seventy-five thousand, making twelve lakh seventy-five thousand of gross salary the zero-tax point. The increment arithmetic itself carries no tax constants and does not change with the financial year.
A percentage in and the rupees out, a new salary in and the percentage out, or a steady yearly raise compounded across a decade. Free, private, and nothing you type is stored.
📈 Calculate My IncrementWant the figure after tax on your new salary? Continue to the post-tax salary calculator, get the monthly credit from the in-hand salary calculator, or browse all of the salary calculators for India.