Salary Hike Calculator India — CTC to In-Hand After Increment
Got a 15% hike but wondering how much actually reaches your bank? Enter your current CTC and hike percentage to see the new salary breakdown, effective in-hand increase under both tax regimes, and whether to negotiate for higher basic or more special allowance.
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How to Use This Calculator
New Salary tab
Enter your current annual CTC, the hike percentage announced by your company, and your basic salary percentage (typically 40-50% of CTC). The calculator shows your new CTC, new salary structure (basic, HRA, PF, special allowance), and estimated in-hand salary under both the new and old tax regime. Monthly increase is shown so you can see exactly how much more lands in your bank account.
Effective Hike tab
This is the "reality check" tab. A 15% gross hike on CTC does not mean 15% more in your bank account. This tab breaks down exactly where your hike goes: incremental PF (employee and employer), incremental tax, and incremental gratuity. It shows the actual take-home increase and calculates your effective in-hand hike percentage — the number that actually matters.
Negotiate Better tab
During salary negotiation, you can sometimes choose between a higher basic salary (which increases PF, HRA, and gratuity) or a higher special allowance (which increases in-hand pay). This tab compares both options at +10% and -10% basic to show the trade-off: more retirement savings vs more cash today.
Share your result
Every input is encoded in the URL. Click Share to send your exact salary hike breakdown to a colleague, friend, or HR.
The Formula
The salary hike calculation involves applying the hike to CTC and recalculating the entire salary structure:
New CTC = Current CTC × (1 + Hike% / 100)
Salary Structure (same ratios applied to new CTC):
New Basic = New CTC × Basic%
New HRA = New Basic × 50% (metro)
New Employer PF = New Basic × 12%
New Gratuity = New Basic × 15/26 ÷ 12 (4.81%)
New Special Allowance = New CTC − Basic − HRA − Employer PF − Gratuity
Effective Hike:
Gross Hike = New CTC − Old CTC
Incremental PF = (New Basic − Old Basic) × 12%
Incremental Tax = Tax(New CTC) − Tax(Old CTC)
Actual Take-Home Increase = New In-Hand − Old In-Hand
Effective Hike% = (Actual Take-Home Increase ÷ Old In-Hand) × 100
New Regime Tax Slabs FY 2025-26:
Up to &rupee;4L: 0% | &rupee;4-8L: 5% | &rupee;8-12L: 10% | &rupee;12-16L: 15% | &rupee;16-20L: 20% | &rupee;20-24L: 25% | Above &rupee;24L: 30%
Standard deduction: &rupee;75,000. Rebate under 87A for income up to &rupee;12L.
Old Regime Tax Slabs FY 2025-26:
Up to &rupee;2.5L: 0% | &rupee;2.5-5L: 5% | &rupee;5-10L: 20% | Above &rupee;10L: 30%
Standard deduction: &rupee;50,000. Allows 80C (&rupee;1.5L), 80D, HRA exemption.
The key insight: a 15% CTC hike translates to roughly 10-13% effective in-hand increase for most employees, depending on income level and tax bracket.
Example
Priya — Bengaluru software engineer, CTC &rupee;10,00,000, gets 15% hike
Priya has a CTC of &rupee;10 lakh with 40% basic. She receives a 15% annual hike, bringing her new CTC to &rupee;11,50,000. She uses the new tax regime.
Step 1: Before and after CTC
Step 2: Where the hike goes
Step 3: Effective hike
Priya's 15% gross hike results in only about 13.2% effective increase in take-home pay. The gap is due to incremental PF, tax, and gratuity deductions. Use the Effective Hike tab to see the exact breakdown for your numbers.