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 or job changes to understand the relative increase in compensation.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( \text{New Salary} \) — The proposed or new salary (INR/year)
• \( \text{Current Salary} \) — The current salary (INR/year)

Explanation: The formula calculates the difference between new and current salary as a percentage of the current salary.

3. Importance of Salary Hike Calculation

Details: Understanding salary hike percentage helps employees evaluate job offers, negotiate better compensation, and assess annual appraisal increments in the Indian job market.

4. Using the Calculator

Tips: Enter current and new salary in INR/year format. Both values must be positive numbers. The calculator will show the percentage increase between the two amounts.

5. Frequently Asked Questions (FAQ)

Q1: Should I consider CTC or take-home for hike calculation?
A: For accurate comparison, use Cost to Company (CTC) figures as they represent total compensation including all benefits.

Q2: What is considered a good salary hike in India?
A: Typically, 10-15% is standard for annual appraisals. 20-30% or more is considered good when changing jobs.

Q3: Does this calculator account for bonuses and variable pay?
A: No, it calculates based on fixed salary components. For comprehensive comparison, include all compensation elements.

Q4: How does this differ from increment percentage?
A: The calculation is the same, but "hike" typically refers to job change increases while "increment" refers to annual raises.

Q5: Should I consider inflation when evaluating salary hikes?
A: Yes, a hike below inflation rate (typically 5-7% in India) may actually represent a decrease in purchasing power.