How a salary hike is calculated
New CTC = Old CTC × (1 + Hike % ÷ 100)
The headline percentage is only half the story. Employer PF and gratuity grow with your basic pay, and a higher gross salary can cross into a new tax slab, so the percentage rise in your in-hand pay is often smaller than the CTC hike. That is why the calculator shows both.
How this calculator works
Enter your current CTC, your new CTC (or the hike percentage) and your basic pay share. Both figures run through the same CTC-to-in-hand model under the new regime, and the result shows the CTC increase, the monthly in-hand increase in rupees and the effective hike on take-home pay.
The ₹12 lakh trap: when a raise barely helps
For FY 2026-27, taxable income up to ₹12 lakh pays no tax under the new regime. Cross it, and marginal relief caps your tax at the amount by which you exceed ₹12 lakh, so almost every extra rupee goes to tax until about ₹12.7 lakh of taxable income. With a 50% basic, that zone corresponds to a CTC of roughly 13.9 to 14.7 lakh.
| CTC | In-hand / month | Tax / year |
|---|---|---|
| 13.5 LPA | ₹96,094 | ₹0 |
| 14 LPA | ₹99,026 | ₹7,623 |
| 14.5 LPA | ₹98,623 | ₹55,253 |
| 15 LPA | ₹1,00,308 | ₹77,832 |
A move from 14 to 14.5 LPA actually lowers take-home slightly. If your raise lands in this band, ask whether part of it can go into employer NPS, which is deductible under Section 80CCD(2) even in the new regime.
What counts as a good hike
Annual increments for people staying with the same employer have typically been in the high single digits, with top performers getting more. Job switches usually bring bigger jumps, often 20% to 40%, because companies pay a premium to hire people who are already employed. These are broad patterns rather than guarantees; your industry, role and how scarce your skills are matter far more than any average.
Frequently asked questions
How do I calculate my salary hike percentage?
Subtract your old CTC from your new CTC, divide by the old CTC and multiply by 100. A move from ₹8 lakh to ₹9.2 lakh is a 15% hike.
Why is my in-hand increase smaller than my hike?
Part of the increase goes to higher employer PF, gratuity and your own PF, and a higher gross can attract more income tax, so take-home rises by a smaller percentage than CTC.
Should the hike be on CTC or fixed pay?
Ask which figure the percentage is applied to. A hike on CTC that includes variable pay can look larger than the same rupee increase on fixed pay.
Can a salary hike reduce my take-home?
Rarely, but yes: just above ₹12 lakh of taxable income, marginal relief can absorb the whole raise and a little more, as the table above shows.