Eternexa

Salary Hike Calculator

Turn a hike % into the new salary (or decode the % from two offers) — and see what it is really worth after inflation.

Your salary

Step 1 of 2
₹50,000

What do you know?

12%
Salary after a 12% hike
₹56,0005.66% real, after inflation

₹6,000 more every month · ₹72,000 a year

12%on paper
Monthly increase
₹6,000
Yearly increase
₹72,000
Real hike
5.66%
  • What you already earn
  • The raise
After 6% inflation, this 12% hike is a 5.66% real change in buying power.

What the raise is actually worth

The headline percentage, and the one that survives inflation.

Current salary
₹50,000per month
+ Monthly increase
₹6,00012.00% on paper
= New salary
₹56,000₹72,000 more a year

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Appraisal-season arithmetic

The hike conversation happens in percentages; your life happens in rupees. This page converts fluently in both directions — a promised 12% on ₹50,000 is ₹6,000 more a month; an offer of ₹60,000 against your ₹50,000 is a 20% jump — and then asks the question HR never will: what is it worth after inflation?

Nominal vs real: the hike inside the hike

Prices rise while your salary does. The honest value of a raise is real = (1 + hike) ÷ (1 + inflation) − 1: a 12% hike in a 6%-inflation year is a 5.66% real improvement; a 6% hike is treading water; a 4% “raise” is a quiet pay cut. Run last year’s increment through this lens before celebrating — and run the offer letter through it before switching, because a 30% jump that comes with a costlier city can net out thinner than it looks.

CTC hike ≠ in-hand hike

Increments are announced on CTC, but you spend take-home. A restructured offer can grow CTC 15% while in-hand grows 10% — more of the package parked in employer PF, gratuity accrual, variable pay or one-time joining bonuses. After any hike or offer, rebuild the real number with the take-home calculator, and check whether the raise nudges you across a tax-planning threshold worth acting on in the old-vs-new comparison.

Making the raise permanent

The salaried superpower is the step-up: routing a slice of every increment into investments before lifestyle absorbs it. Raising a SIP by 10% with each yearly hike roughly doubles a 20-year corpus versus a flat SIP — the step-up mode on our SIP page shows it with your numbers. A practical split for a 12% hike: half to lifestyle, half to the step-up. The raise you invest is the only part of the increment that compounds.

Frequently asked questions

How do I calculate my hike percentage from two salaries?
(New − Old) ÷ Old × 100. From ₹50,000 to ₹60,000: 10,000 ÷ 50,000 = 20%. Use the same basis on both sides — comparing an old in-hand against a new CTC is the classic way offers get overstated.
What is an average salary hike in India?
Recent appraisal cycles have averaged around 8–10% for good performers, with top ratings reaching 12–15%. Job switches routinely command 20–40%. Against ~6% inflation, a single-digit increment is mostly maintenance — which is why the real-hike line on this page matters more than the headline.
Why did my in-hand not grow as much as my CTC hike?
Because parts of CTC never reach your bank account, and they scale too: employer PF, gratuity accrual, insurance, larger variable components. A higher Basic also means more employee PF deduction. Recompute take-home from the new structure rather than applying the announced percentage to your current credit.
Is a 30% hike worth switching jobs for?
Often, but net it out first: relocation and city costs, notice-period buyouts repaid, bonuses left behind, variable pay at target vs guaranteed, and the new take-home after restructuring. A 30% CTC jump that nets 15% in-hand in a costlier city is a lifestyle-neutral move wearing a big number.
What should I do with a raise financially?
Automate it before you feel it: step up SIPs by the hike percentage, clear any expensive EMI faster, top up the emergency fund to the new expense level — in that order. Lifestyle can have what remains; reversing the order is how a decade of raises produces no savings growth.

Related calculators

Take-Home Salary

Turn your CTC into real monthly in-hand pay — with PF, gratuity, professional tax and income tax broken down.

Income Tax

Compare the old and new tax regimes side by side for FY 2026-27 and see exactly which one saves you more.

Inflation

See what today’s money will cost — and what it will still buy — years from now, at any assumed inflation rate.

Disclaimer: Eternexa is an independent app and is not affiliated with, endorsed by, or representing the Income Tax Department, the Government of India, or any government entity, and does not provide official government services. This calculator gives an estimate for general information only — it is not financial, investment or tax advice. Tax and finance figures follow FY 2026-27rules and are based on publicly available information from official sources such as incometax.gov.in and epfindia.gov.in. Always verify important numbers with the official source or a qualified professional before acting on them.