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BizzFieldPayroll

SALARY CALCULATOR

See what an increment actually adds.

A percentage on an annual figure is hard to feel. This shows the revised package alongside the monthly difference it makes.

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Fields are pre-filled with typical values — type your own or drag the sliders, and everything recalculates instantly. Nothing is sent to a server.

%

Calculated on FY 2025-26 statutory rates. Indicative only — confirm against current notifications before filing.

Revised annual CTC

₹10,35,000

Annual increase

₹1,35,000

Monthly increase

₹11,250

Hike applied

15%

Current package against the increase

Current CTC₹9,00,000
Increase₹1,35,000

Full breakdown

Current annual CTC₹9,00,000
Increase₹1,35,000
Revised annual CTC₹10,35,000
Revised monthly CTC₹86,250

Step-by-step calculation

1Increase amount₹9,00,000 × 15%₹1,35,000
2Revised CTC₹9,00,000 + ₹1,35,000₹10,35,000
3Revised monthly CTC₹10,35,000 ÷ 12₹86,250

HOW IT WORKS

The formula used

Two forms of the same relationship, depending on which figure you are solving for.

Revised salaryCurrent salary × (1 + hike% ÷ 100)
Hike percentage((New − current) ÷ current) × 100
Monthly difference(Revised − current) ÷ 12

UNDERSTANDING IT

About the salary hike calculator

Increment conversations happen in percentages, but budgets are lived monthly. A 15% hike on a ₹9,00,000 package sounds substantial, and it is — but the monthly difference before tax is what will actually be noticed.

It is also worth separating a hike on fixed pay from a hike on total package. An increment that raises variable pay without raising fixed pay changes the headline CTC without changing guaranteed monthly income.

When comparing an internal increment against an external offer, compare like with like: fixed against fixed, and ideally in-hand against in-hand rather than CTC against CTC.

Worked example

Take a current CTC of ₹9,00,000 with a 15% hike.

The increase is ₹1,35,000 a year, taking the revised package to ₹10,35,000. Spread across twelve months that is ₹11,250 more per month before tax. After income tax and the higher provident fund that follows a higher basic, the actual in-hand increase will be smaller.

WHY IT HELPS

What this calculator is good for

Translate percentages into money

See the annual and monthly rupee difference rather than an abstract percentage.

Compare offers against increments

Check whether an external offer genuinely beats an internal increment once both are on the same basis.

Plan the negotiation

Work backwards from a target package to the percentage you need to ask for.

WATCH OUT

Common mistakes

These are the errors that most often produce a wrong number.

  • Comparing a hike on fixed pay against a hike on total package including variable.

  • Forgetting that a higher package moves you into a higher tax bracket, so in-hand rises by less than the gross increase.

  • Treating a one-off retention bonus as equivalent to a permanent increment.

  • Ignoring the compounding effect — future increments are computed on the revised base.

HR TIPS

Practical guidance

Negotiate on fixed pay

Fixed pay compounds into every future increment. Variable pay resets each year.

Ask for the revised structure

Confirm how the increase is distributed across basic and allowances, since that drives take-home.

Check the effective date

A revision effective from an earlier month generates arrears, which arrive as a one-time payment.

QUESTIONS

Salary Hike Calculator — frequently asked

Subtract your current salary from the new salary, divide the result by the current salary, and multiply by 100. A move from ₹8,00,000 to ₹9,20,000 is a 15% hike.

Annual increments commonly fall in the high single digits to low double digits, while a hike on changing employer is typically larger. The right benchmark depends on role, sector and performance rather than a single national figure.

No. A higher package usually means higher income tax and, where basic rises, a higher provident fund contribution. In-hand therefore increases by less than the percentage applied to CTC.

If an increment is effective from a month that has already been paid, the difference for those months is paid as arrears, usually in a single cycle alongside regular salary.

Results are indicative and computed on FY 2025-26statutory rates using conventional salary-structure assumptions. Your actual figures depend on your employer’s structure, your state and your declarations. Confirm against current notifications before relying on these numbers for filing.

Run this on real payroll, not a calculator

Stop calculating payroll in a spreadsheet. BizzField Payroll runs the whole cycle, applies every statutory rule and files what regulators expect.