1. What is Salary Hike Percentage?

The Salary Hike Percentage calculates the percentage increase in salary from current to new salary. It's commonly used in India during annual appraisals (AY) to determine pay raises.

2. How Does the Calculator Work?

The calculator uses the salary hike percentage formula:

Where:

• \( \text{New Salary} \) — New annual salary in INR
• \( \text{Current Salary} \) — Current annual salary in INR

Explanation: The formula calculates the relative increase in salary as a percentage of the current salary.

3. Importance of Salary Hike Calculation

Details: Calculating salary hike percentage helps employees understand their pay raise, compare offers, and negotiate better compensation during appraisals or job changes.

4. Using the Calculator

Tips: Enter both current and new salary in INR/year. Both values must be positive numbers, with new salary greater than current salary for a positive hike.

5. Frequently Asked Questions (FAQ)

Q1: What is a good salary hike percentage in India?
A: Typically, 10-15% is considered standard during annual appraisals. 20%+ is considered good, while 30%+ is exceptional.

Q2: Should I consider only percentage when evaluating a hike?
A: No, also consider absolute amount, benefits, career growth, work-life balance, and other non-monetary factors.

Q3: How is this different from CTC calculation?
A: This calculates percentage increase in base salary only. CTC (Cost to Company) includes all benefits and may have different hike percentages.

Q4: What if my hike percentage is negative?
A: A negative value means your new salary is less than current salary, which shouldn't happen in normal circumstances.

Q5: Does this account for tax implications?
A: No, this calculates gross hike percentage. Net take-home may differ based on tax brackets and deductions.