Salary Hike Calculator: New CTC and Your Real In-Hand Raise

₹8 lakh a year

₹9,20,000/yr

New CTC

Tax regime · Tax year 2026-27

Share

(₹9,20,000 − ₹8,00,000) ÷ ₹8,00,000 × 100 = 15%

In hand: ₹61,264 → ₹71,024 a month (+₹9,760, +15.9%).

Want the next hike to be a bigger one? A counsellor can show which upskilling programmes fit around your job.

A free call with a CareerBhavan counsellor, at a time that suits you.

Your hike, before and after tax

Per year · in hand per month changes by ₹9,760

Salary before and after the hike, per year
ItemNowAfter hikeChange
CTC₹8,00,000₹9,20,000+₹1,20,000
Gross salary₹7,59,169₹8,76,285+₹1,17,115
Your PF₹21,600₹21,600+₹0
Income tax with cess₹0₹0+₹0
In hand₹7,35,169₹8,52,285+₹1,17,115

Common hikes on ₹8 lakh

New CTC and monthly in-hand raise at common hike levels
HikeNew CTCIn hand a monthIn-hand rise
5%₹8,40,000₹64,517+5.3%
10%₹8,80,000₹67,771+10.6%
15%₹9,20,000₹71,024+15.9%
20%₹9,60,000₹74,277+21.2%
30%₹10,40,000₹80,783+31.9%

Assumes basic pay at half of CTC, PF on ₹15,000 a month, gratuity inside CTC and ₹2,400 a year of professional tax. For your exact salary structure, use the in-hand salary calculator.

The short answer

Hike % = (new CTC − current CTC) ÷ current CTC × 100, and new CTC = current CTC × (1 + hike ÷ 100). A 15% hike on an ₹8 lakh CTC makes it ₹9.2 lakh. Your monthly in-hand pay can rise faster or slower than that: a capped PF lifts it, while crossing into income tax slows it sharply.

How to use it

  1. 1

    Enter your current annual CTC.

  2. 2

    Enter the hike percentage, or switch to the new CTC you have been offered.

  3. 3

    Read the new CTC or hike %, and compare your monthly in-hand pay before and after.

How the hike and the in-hand raise are worked out

Hike % = (new CTC − current CTC) ÷ current CTC × 100

For the in-hand side, both salaries go through the same engine as our in-hand salary calculator: employer PF and gratuity come out of CTC, then your PF, professional tax and income tax under the Tax year 2026-27 slabs. The table shows each line before and after, so you can see which part of the hike tax takes.

Under the new regime, tax is nil on taxable income up to ₹12 lakh, and marginal relief caps the tax just above that line at the income above ₹12 lakh. That is why a hike that crosses the line raises in-hand pay much less than the headline percentage, while a hike below it can raise in-hand pay slightly more than the percentage when PF is capped.

Frequently asked questions

How do I calculate my salary hike percentage?

Subtract your current CTC from the new CTC, divide by the current CTC and multiply by 100. Going from ₹8 lakh to ₹9.5 lakh is (9.5 − 8) ÷ 8 × 100 = 18.75%.

How do I calculate my new salary after a hike?

Multiply your current CTC by (1 + hike ÷ 100). A 10% hike on ₹6 lakh is 6 × 1.10 = ₹6.6 lakh a year.

Why does my in-hand salary not rise by the same percentage?

Two things move it. If your PF is capped at ₹15,000 a month of wages, PF does not grow with the hike, so in-hand rises a little faster than CTC. If the hike takes your taxable income past the point where tax starts, income tax takes a share and in-hand rises much more slowly. Under the new regime for tax year 2026-27, a 10% hike on ₹13 lakh CTC raises monthly in-hand by only about 4%.

Is the hike calculated on CTC or on fixed pay?

Check your appraisal letter. Many employers quote the hike on fixed pay and pay variable or bonus separately, so the CTC change can differ from the quoted percentage. Enter the CTC figures from your letters to see the real change.

Will a hike push my whole salary into a higher tax bracket?

No. Each slab rate applies only to the income inside that slab. Under the new regime, tax is nil on taxable income up to ₹12 lakh, and just above that line marginal relief limits the tax to the income above ₹12 lakh, so a hike never leaves you with less in hand than before.

Related tools

See all tools
Saved0