Appraisal Season 2026 · FY 2026-27

Salary Hike Calculator India

Find out your new CTC, new in-hand salary, and exact extra take-home after your appraisal increment.

Compare Old & New Salary
Includes Tax Impact
FY 2026-27 Updated
Free to Use

Enter Hike Details CALCULATOR

Enter the % increment offered

Your Hike Summary RESULTS

Enter your details and click Calculate to see your new salary.

How to Use the Salary Hike Calculator

This salary hike calculator helps you understand exactly how much extra money you will take home after your annual appraisal. Simply enter your current CTC, the hike percentage offered, and your location details.

What is a Good Salary Hike in India?

Hike %RatingTypical Scenario
Below 5%Below AverageInflation adjustment, no real raise
5–10%AverageStandard market hike
10–15%GoodAbove average performer
15–25%ExcellentTop performer / promotion
25%+OutstandingRare – usually via job change or role change

Salary Hike Formula

The formula to calculate your new CTC after hike is:

New CTC = Current CTC × (1 + Hike % / 100)

For example, if your current CTC is ₹10 LPA and you get a 15% hike:

New CTC = ₹10,00,000 × 1.15 = ₹11,50,000

However, the increase in take-home pay is not the same as the increase in CTC — a higher salary can push you into a higher tax bracket, meaning a larger portion of the incremental income goes to tax.

How Tax Affects Your Hike

Under the New Tax Regime for FY 2026-27, here is how marginal tax rates affect your real gain:

Taxable Income RangeMarginal Tax RateEffect on ₹1 Lakh Hike
Up to ₹7 Lakhs0% (rebate)Full ₹1 Lakh extra in-hand
₹7L – ₹10L10%₹90,000 extra in-hand
₹10L – ₹12L15%₹85,000 extra in-hand
₹12L – ₹15L20%₹80,000 extra in-hand
₹15L+30%₹70,000 extra in-hand

Frequently Asked Questions

How is salary hike calculated in India?
Salary hike % = ((New CTC - Old CTC) / Old CTC) × 100. Most companies in India calculate hike on the total CTC. The in-hand increase depends on tax brackets — higher salaries face higher marginal taxes.
What is the average salary hike in India in 2026?
Industry reports indicate the average salary hike in India in 2026 is 8–10% across sectors. IT and tech sectors typically see higher hikes of 10–14%, while manufacturing and retail average 6–8%.
Should I negotiate my salary hike?
Absolutely. A common strategy is to research your market value, present your achievements, and ask for 20–30% more than the offer. Even getting 2–3% more is significant over the long run due to compounding on future hikes.