Salary Hike Calculator
Calculate exact salary increases or hike percentages instantly. Skip the spreadsheets and guesswork.
Hike Percentage
10%
How to Use the Calculator:
- Enter your current salary.
- Enter your new salary.
- Get your hike percentage.
All You Need To Know About In-hand Salary Calculator
What is a Salary Hike?
A salary hike is a permanent increase in your base pay that happens due to your growing influence in the workplace. Often referred to as a salary increment, it can be expressed as a percentage or a fixed amount.
For example, if you currently earn Rs. 50,000 and receive a 10% hike, your new salary will be Rs. 55,000 – a 5,000 boost!
Salary hikes also come with added responsibilities but also pave the way for better financial planning, career advancement, and stability. Gaining a better understanding of your hike helps you in staying informed and make decisions that align with your long-term goals.
How Does a Hike Calculator Work?
The salary hike calculator is a user-friendly tool designed to simplify the salary increase process. It has a very simple working mechanism: take your inputs, run the right formula, and show you correct results.
No spreadsheets. No Errors. No Confusion.
Why Use Our Salary Hike Calculator?
Quick and Accurate: Say goodbye to juggling multiple spreadsheets and complex mental math – get results in seconds.
Dual Functionality: Option to find both your revised salary and the hike percentage.
Smart Financial Planning: Easy to understand the real impact of salary raise on your finances, future goals, and vacation plans.
How to Use the Calculator:
- Enter your current salary.
- Enter the hike percentage.
- Instantly get your new salary.
- Enter your current salary.
- Enter your new salary.
- Get your hike percentage.
Key Components of a Salary Structure
But, before you start calculating your salary hike, there’s something essential to understand – the basic components of your salary structure. These common terms will be used when you use our calculator or manually do the calculations yourselves:
1. Basic salary: The fixed part of your salary, usually 35-40% of your CTC, is also the foundation of the rest of the components.
2. Gross Salary: Your earnings before deductions include basic allowances and bonuses.
3. Net Salary: The actual salary that you take home after deducting taxes, PF, and others.
4. House Rent Allowance (HRA): It covers house rent expenses and varies based on cities.
5. Dearness Allowance (DA): It helps offset inflation impact on your daily living, and is quite common in government and private sectors.
6. Conveyance Allowance: It covers the daily commute expenses for officegoers.
7. Special Allowance: A flexible amount added over basic salary to balance out CTC.
8. Bonus/Variable Pay: Performance-linked incentive paid quarterly, half-yearly, or annually.
9. Provident Fund (PF): A retirement benefit contributed by both you and your employer.
10. Professional Tax: The state government deducted tax varying based on state policies.
11. Gratuity: Lump sum paid after 5+ years of continuous service.
12. CTC (Cost-to-Company): Your total salary package – including all the benefits, allowances, and deductions.
How to Calculate Salary Hike?
Are you doing the entire math yourself? Well, here’s the simple way to do all the calculations:
1. Start with your current salary: Note your base salary before any taxes or deductions (say Rs. 50,000).
2. Enter the hike percentage: Include the hike percentage you received (say 30%).
3. Calculate the salary increase: Apply this formula: Increase amount = (Hike percentage/100) * Current salary
4. Find your new salary: Add increase amount of your current salary:
New Salary = Current Salary + Increased Amount
If that feels too much of an effort, you don't need to do the math yourself! Simply enter the details into our Salary Hike Calculator and get precise results in milliseconds.
How to Calculate Hike Percentage?
If you already know your new salary and want to find the hike percentage, follow these steps:
1. Start with your current salary: Note your base salary before any hike, taxes, or deductions.
2. Identify your new salary: Record your salary after the hike but before deductions.
3. Calculate the salary increase: Subtract your current salary from your new
salary with this formula:
Increase amount = New salary – Current salary
4. Determine the hike percentage: Finally, use this formula to find the
percentage:
Hike percentage = (Increase amount / Current salary) * 100
No need to overthink it – our calculator can handle all these calculations for you in seconds.
Examples of Salary Hike Calculations
Let’s simplify things further with some examples:
Example 1: A 30% Salary Hike
Let’s assume your current salary is Rs. 50,000, and you receive a 30% hike.
Current Salary: Rs. 50,000
Hike Percentage: 30%
Increase Amount: (30/100) * Rs. 50,000 = Rs. 15,000
New Salary: Rs. 50,000 + Rs. 15,000 = Rs. 65,000
So, with a 30% hike, your new salary is Rs. 65,000.
Example 2: A 40% Salary Hike
Let’s assume your current salary is Rs. 80,000, and you receive a 40% hike.
Current Salary: Rs. 80,000
Hike Percentage: 40%
Increase Amount: (40/100) * Rs. 80,000 = Rs. 32,000
New Salary: Rs. 80,000 + Rs. 32,000 = Rs. 112,000
So, with a 40% hike, your new salary is Rs. 112,000.
Example 3: Calculating Hike Percentage
Suppose your current salary is Rs. 60,000, and your new salary after the hike is Rs. 75,000.
Current Salary: Rs. 60,000
New Salary: Rs. 75,000
Increase Amount: Rs. 75,000 – Rs. 60,000 = Rs. 15,000
Hike Percentage: (Rs. 15,000 / Rs. 60,000) * 100 = 25%
This means you received a 25% salary hike.
Frequently Asked Questions
Yes, salary hike and salary increment are similar terms that refer to an increase in the base salary and is usually expressed in terms of a percentage or fixed amount.
To calculate a 40% hike:
a. Multiply your current salary by 40/100 to find the hike amount.
b. Add the hike amount to your current CTC to determine the amount.
To calculate a 30% hike:
a. Multiply your current salary by 30/100 to find the hike amount.
b. Add the hike amount to your current CTC to determine the amount.
The best tools for accurate and efficient calculations are:
a. Keka’s Salary Hike Calculator
b. Increment Calculator
c. Percentage Increase Calculator