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, job changes, or promotions to understand your revised compensation.

2. How Does the Calculator Work?

The calculator uses the salary hike formula:

Where:

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

Explanation: The formula calculates the increased amount by multiplying current salary with 1 plus the hike percentage (converted from percentage to decimal).

3. Importance of Salary Hike Calculation

Details: Understanding salary hikes 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 applied to basic salary or CTC?
A: Typically, percentage hikes are applied to your basic salary, but some companies may apply it to CTC. Confirm with your HR department.

Q2: How is monthly salary calculated from annual salary?
A: Divide annual salary by 12. Note that some components like bonuses may not be evenly distributed.

Q3: What is a good salary hike percentage in India?
A: Average hikes range from 8-15%. Exceptional performers may get 20-30%, while promotions can bring 30-50% increases.

Q4: Does this calculator account for taxes?
A: No, this shows gross salary. Net salary will be lower after deductions like income tax, PF, etc.

Q5: How to negotiate a better salary hike?
A: Research market rates, highlight your contributions, and be prepared with data to justify your request.