Salary hike calculator

₹12,00,000 per year

Assumptions

Left at zero, the old regime is compared using only the standard deduction, professional tax and your EPF. Add your actual exemptions for a fair comparison.

New CTC after 30% hike

₹15,60,000
+₹3,60,000 a year on paper — ₹3.6 L more CTC.

Monthly in-hand — what actually reaches your bank

Now ₹87,800
After hike ₹1,06,512
Headline hike 30%
Real hike 21.3%
Extra per month +₹18,712
Extra per year +₹2,24,542
Your CTC goes up 30% but your take-home only goes up 21.3% — a gap of 8.7%. A raise is taxed at your marginal rate, not your average one, so the headline number always overstates what you actually gain.

Tax regime at your new salary

New regimeBetter ₹92,258
Old regime ₹2,16,965

Picking the new regime saves you ₹1,24,707 a year. Add your actual 80C/80D/HRA figures under Assumptions for a fairer old-regime comparison.

Most hike calculators stop at the new CTC. That number is close to meaningless — it includes your employer's EPF contribution, and it is taxed at your marginal rate. This one shows what actually changes in your bank account each month.

What this calculator does differently

  • Monthly in-hand, before and after. The number your offer letter does not tell you, and the one you actually budget with.
  • Your "real" hike. A 30% CTC hike is not a 30% pay rise. We show both percentages side by side.
  • Regime comparison at the new salary. A raise can flip which tax regime is better for you. We check at the new number, not the old one.
  • Cliff warnings. Just above ₹12,00,000 of taxable income there is a band where every extra rupee costs ₹1.04 in tax. We tell you when your offer lands in it.

How the calculation works

We start from CTC and work down to take-home, the same way a payroll system does:

  1. Remove employer EPF. CTC includes your employer's 12% provident fund contribution. It is your money eventually, but it is not salary — so gross salary = CTC − employer EPF.
  2. Apply the standard deduction. ₹75,000 under the new regime, ₹50,000 under the old one.
  3. Apply the slabs, rebate, surcharge and 4% cess for both regimes, including marginal relief at the ₹12,00,000 and ₹50,00,000 boundaries.
  4. Subtract your own EPF and professional tax to arrive at annual take-home, then divide by twelve.

The full formula, with worked examples, is in the guide to calculating a salary hike.

Hike calculator by CTC

Pre-filled pages with a full hike table — every percentage from 10% to 100%, with the resulting CTC and monthly in-hand already worked out.

Frequently asked questions

How do I calculate my salary hike percentage?

Hike % = ((New CTC − Old CTC) ÷ Old CTC) × 100. For example, going from ₹12,00,000 to ₹15,60,000 is ((15,60,000 − 12,00,000) ÷ 12,00,000) × 100 = 30%. The calculator above does this in both directions — enter a percentage to get the new CTC, or a new CTC to get the percentage.

Why is my in-hand increase smaller than my hike percentage?

Because a raise is taxed at your marginal rate, not your average rate. Your existing salary already used up the lower slabs, so the entire increase is taxed at the highest rate you have reached — often 30%. On top of that, EPF takes 12% of the increase in basic pay. A 30% CTC hike commonly lands as a 20–25% increase in actual take-home.

What is a good salary hike when switching jobs in India?

A switch typically fetches 20–40% in Indian IT and product companies, while an internal appraisal usually lands at 8–15%. Anything below inflation (roughly 5–6%) is effectively a pay cut in real terms. What matters more than the headline number is the in-hand change, which this calculator shows you directly.

Which tax regime should I choose after my hike?

The new regime wins for most salaried people who do not claim large exemptions, because it has a higher standard deduction (₹75,000) and a full rebate up to ₹12,00,000 of taxable income. The old regime only wins if your HRA, 80C, 80D and home-loan interest deductions together are large. The calculator compares both at your new salary — add your actual deductions under "Assumptions" for a fair comparison.

Does this calculator include EPF and professional tax?

Yes. It deducts your 12% EPF contribution (with an option to cap it at ₹1,800/month), professional tax of ₹200/month, and income tax including cess. It also removes your employer's EPF contribution from CTC, since that money never appears in your salary account.

Is my salary data stored anywhere?

No. Every calculation runs entirely in your browser. Nothing you type is sent to a server, logged, or stored. There are no accounts and no tracking cookies.

Which financial year does this use?

FY 2026-27 (Assessment Year 2027-28), using the slabs, ₹75,000 standard deduction and ₹60,000 Section 87A rebate published by the Income Tax Department. Budget 2026 left the slabs unchanged from the previous year.