Your new salary is your old salary × (1 + the hike ÷ 100): a 10% hike turns 6,00,000 a year into 6,60,000. Or enter your old and new salary to get the hike percentage, with monthly and yearly figures for both.
The formula
New salary
new = old × (1 + hike ÷ 100)Hike percentage
hike % = (new − old) ÷ old × 100Monthly and yearly
yearly = monthly × 12 · monthly = yearly ÷ 12A negative hike is a pay cut. A hike from a salary of zero has no percentage, so it is not calculated.
Worked example
Now the other way. Going from 50,000 to 56,000 a month is a rise of 6,000, and 6,000 ÷ 50,000 × 100 is a hike of 12%, or 72,000 more a year.
When to use it, and the mistakes to avoid
Use it when you get an offer or an appraisal letter, to see what a percentage means in rupees, dollars or pounds each month, or to work out the hike you would need to reach a target salary.
- Mixing monthly and yearly. Enter both salaries the same way, or pick the period and let the calculator convert.
- Comparing gross with take-home. A hike on gross pay does not raise take-home by the same percentage, because tax and deductions change too.
- Applying the hike to the wrong base. Say whether it is on basic pay or on total pay.
- Adding hikes together. A 10% hike followed by another 10% is 21%, not 20%.
- Forgetting inflation. A hike below the rate of inflation is a fall in what your pay buys.
FAQ
How do I calculate a salary hike percentage?
Subtract your old salary from your new one, divide by the old salary, and multiply by 100. From 50,000 to 56,000 a month that is (56,000 − 50,000) ÷ 50,000 × 100 = 12%. Whether you use monthly or yearly figures makes no difference as long as both salaries use the same one.
How do I calculate my new salary after a hike?
Multiply your current salary by 1 plus the hike as a decimal. A 10% hike on 6,00,000 a year is 6,00,000 × 1.10 = 6,60,000. The calculator shows the new salary per month and per year, so you can compare it with your payslip.
Is the hike on my CTC or on my take-home pay?
It depends on how your employer states it. Most hikes are quoted on total pay (CTC or gross salary), but tax, provident fund and other deductions do not rise in step with it, so your take-home pay usually rises by a different percentage. This calculator works on whichever figure you enter and does not apply tax.
Why is the hike I got different from the hike I expected?
Usually because the percentage was applied to a different base. A 10% hike on basic pay alone raises total pay by less than 10% when allowances and bonuses are fixed. Compare the full old and new figures with the hike percentage mode to see what you actually got.
Can the hike be negative?
Yes. A negative hike is a pay cut, and the percentage mode shows one when the new salary is lower than the old one. From 1,00,000 to 90,000 is a −10% hike. Note that a 10% cut followed by a 10% hike leaves you below where you started, because the second percentage is of a smaller number.