10% hike on ₹5 LPA
A 10% hike on ₹5 LPA is a standard IT-services appraisal. You stay fully outside income tax, so almost the whole increase reaches your account; the constraint is the rupee amount, not the tax.
Worked calculation
- Current CTC: ₹ 5,00,000
- Hike amount (10% of CTC): ₹ 50,000
- New CTC: ₹ 5,50,000
Monthly in-hand before and after
After employer EPF, your EPF, professional tax and income tax under the better of the two regimes (FY 2026-27):
Now
₹ 36,467
per month
After 10%
₹ 40,133
+₹ 3,666 a month, a real hike of 10.1%
Change the percentage
Your appraisal
₹ 5,00,000 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.
What this hike does
Your real hike, 10.1% in your bank, tracks the 10% on paper. Of the ₹ 50,000 raise, ₹ 6,000 goes to tax and PF.
Revised salary breakdown
| Component | Monthly | Annual |
|---|---|---|
| Revised CTC | ₹ 45,833 | ₹ 5,50,000 |
| Employer PF, inside your CTC | − ₹ 2,750 | − ₹ 33,000 |
| Gross salary | ₹ 43,083 | ₹ 5,17,000 |
| Basic pay (50%) | ₹ 22,917 | ₹ 2,75,000 |
| HRA and other allowances | ₹ 20,167 | ₹ 2,42,000 |
| Employee PF (12% of basic) | − ₹ 2,750 | − ₹ 33,000 |
| Professional tax | − ₹ 200 | − ₹ 2,400 |
| Income tax (new regime) | ₹ 0 | ₹ 0 |
| Net take-home | ₹ 40,133 | ₹ 4,81,600 |
FY 2026-27 rates, new regime applied. Both regimes leave you the same take-home.
Where your revised CTC goes
- Take-home 87.6%
- PF, yours and employer's 12%
- Tax and professional tax 0.4%
Tax by regime
We assume no HRA or 80C claims. Add yours under Assumptions if your letter says otherwise, and the comparison will change.
Next step
Got the number. Now what do you say?
How to counter an offer: what to ask for, in what order, and what the ask is worth after tax.
Same CTC, other common hikes
What the neighbouring percentages do to in-hand on ₹5 LPA. Each row is its own page.
| Hike | New CTC | In-hand / month | Real hike |
|---|---|---|---|
| 10% | ₹ 5,50,000 | ₹ 40,133 | 10.1% |
| 20% hike on ₹5 LPA | ₹ 6,00,000 | ₹ 43,800 | 20.1% |
| 30% hike on ₹5 LPA | ₹ 6,50,000 | ₹ 47,467 | 30.2% |
| 50% hike on ₹5 LPA | ₹ 7,50,000 | ₹ 54,800 | 50.3% |
The same 10% at nearby salaries
Questions about a 10% hike on ₹5 LPA
How do I calculate a 10% hike on ₹5 LPA?
New CTC = old CTC × (1 + 10 ÷ 100). On ₹₹ 5,00,000 that is ₹₹ 5,00,000 × 1.1 = ₹ 5,50,000. The hike amount is ₹ 50,000.
What is the in-hand salary after a 10% hike on ₹5 LPA?
Monthly in-hand goes from ₹ 36,467 to ₹ 40,133, an extra ₹ 3,666 a month. The real hike is 10.1%, not 10%, because the raise is taxed at your marginal rate and EPF takes 12% of the increase in basic.
Is a 10% hike on ₹5 LPA a good offer?
A 10% hike on ₹5 LPA is a standard IT-services appraisal. You stay fully outside income tax, so almost the whole increase reaches your account; the constraint is the rupee amount, not the tax.