1. What is Salary Hike Calculation?

The salary hike calculation determines your new salary after a percentage increase. This is commonly used in India during annual appraisals, promotions, or job changes to understand your new compensation package.

2. How Does the Calculator Work?

The calculator uses the salary hike formula:

Where:

• Current Salary — Your current annual salary in INR
• Hike Percentage — The percentage increase in your salary

Explanation: The formula calculates the new salary by adding the percentage increase to your current salary.

3. Importance of Salary Hike Calculation

Details: Understanding your new salary helps in financial planning, comparing job offers, and negotiating better compensation during appraisals or job changes.

4. Using the Calculator

Tips: Enter your current annual salary in INR and the expected hike percentage. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is the hike percentage calculated on basic salary or CTC?
A: Typically, hike percentage is calculated on your current CTC (Cost to Company), unless specified otherwise by your employer.

Q2: How is monthly salary calculated from annual salary?
A: Divide the annual salary by 12. However, some companies may use different formulas accounting for bonuses or variable pay.

Q3: What is a good salary hike percentage in India?
A: Average hikes range from 8-15% during appraisals. Promotions or job changes may offer 20-40% or more depending on industry and role.

Q4: Does this calculator account for taxes?
A: No, this shows gross salary. Your take-home pay will be after applicable tax deductions.

Q5: How accurate is this calculator?
A: It provides precise mathematical calculation, but actual salary may vary based on company policies, deductions, and other components.