Salary Hike Calculator

The nominal hike is not the raise

A 10% raise against 6% inflation is not a 4% real raise. Purchasing power is a ratio rather than a difference, so the correct figure is 1.10 divided by 1.06, less one - 3.77%. Subtraction is the calculation everybody does in their head and it flatters the raise at every positive inflation rate, by more as both numbers grow.

That gap is small at ordinary numbers and large at the ones that matter. At 30% nominal against 6% inflation, subtraction says 24% and the real figure is 22.6%. Over a career the difference compounds into a materially wrong picture of whether your pay has actually moved.

What this page computes

Both directions. Give it two salaries and it returns the hike percentage; give it a percentage and it returns the new CTC. In each case it also reports the annual and monthly change in rupees and the inflation-adjusted real figure, using an inflation rate you set rather than one we hide.

• Hike percentage from two CTC figures, or a new CTC from a percentage
• The annual and monthly rupee change
• The real hike, using the Fisher relation rather than subtraction
• Pay cuts computed and labelled as reductions rather than clamped at zero
• Inflation as a visible, editable input with a stated default

Why inflation is your input and not our constant

The real-hike figure is the headline on this page, and it is only as good as the inflation number behind it. Hiding a default would make that number ours rather than yours, and it would imply we track a specific series we do not. So it is a field with a round, clearly approximate default that you are expected to change if you have a better one.

What it will not do

It will not tell you whether your hike is fair. That requires salary benchmark data, we do not have a dataset we would stand behind, and a plausible but invented market figure would be worse than no figure at all.

It also does not compute tax. A hike on CTC is not the same as a hike in take-home, because the tax on the increment comes out first and can consume a third of it - use the in-hand salary calculator for that. And it does not project a multi-year career path, which depends on far more than a single increment.