• Average Performers: 5-10% annual increment
• Good Performers: 10-15% annual increment
• High Performers: 15-25% annual increment
• Promotions: 20-40% or more
• Job Change: 30-50% in many cases

Calculate Increment Amount

Use to find the absolute amount of money added to your salary

Given Information:

• Current Monthly Salary = ₹50,000
• Hike Percentage = 20%
• Need to find: New Salary and Increment Amount

Step-by-Step Calculation:

Result: A 20% hike on ₹50,000 monthly salary increases it to ₹60,000, giving you an additional ₹10,000 per month or ₹1,20,000 per year.

From Old to New Salary

When you know both salaries, subtract old from new, divide by old salary, and multiply by 100 to get the percentage increase.

From Percentage to New Salary

When given a hike percentage, convert to decimal (divide by 100), add 1, and multiply by current salary to get new salary.

CTC vs In-Hand Hike

Clarify if the hike applies to CTC or basic salary. CTC includes all benefits, while in-hand is your take-home after deductions.

Multiple Consecutive Hikes

For consecutive raises, apply each percentage sequentially, not additively. A 10% hike followed by 20% is not 30% total.

CTC (Cost to Company)

The total cost a company incurs for an employee, including:

• Basic Salary
• Allowances (HRA, DA, etc.)
• Bonuses & Incentives
• PF Contribution
• Insurance & Benefits
• Gratuity

Basic Salary

The fixed base pay before any additions:

• Usually 40-50% of CTC
• Forms basis for PF, gratuity
• Used for calculating allowances
• Fixed monthly component
• Cannot be less than minimum wage

In-Hand Salary (Take-Home)

Actual amount credited to your account:

• CTC minus all deductions
• Usually 70-80% of CTC
• After PF, tax, insurance
• Varies monthly with tax
• What you actually receive

Research Market Rates

Know industry standards for your role, experience level, and location. Use salary surveys, job portals, and professional networks to gather data before negotiations.

Document Your Achievements

Prepare a comprehensive list of accomplishments, successful projects, revenue generated, costs saved, and additional responsibilities taken on during the review period.

Timing Matters

Request salary discussions during annual reviews, after major project successes, or when taking on new responsibilities. Avoid asking during company financial difficulties.

Be Specific with Numbers

Request a specific percentage or amount based on your research and performance. Avoid vague statements like "I want a good raise." Use data to justify your request.

Consider Total Compensation

If salary increase is limited, negotiate for better benefits, bonuses, stock options, flexible work arrangements, learning opportunities, or faster promotion timelines.

Stay Professional

Approach negotiations professionally and positively. Focus on your value to the company rather than personal needs. Be prepared to hear "no" and have a backup plan.

How do you calculate salary hike percentage?

To calculate salary hike percentage, subtract your current salary from your new salary, divide the result by your current salary, and multiply by 100. Formula: Hike % = [(New Salary - Current Salary) / Current Salary] × 100. For example, if your salary increases from $50,000 to $60,000, the hike percentage is [(60,000 - 50,000) / 50,000] × 100 = 20%.

How to calculate new salary after hike?

To calculate new salary after a percentage hike, multiply your current salary by (1 + hike percentage/100). Formula: New Salary = Current Salary × (1 + Hike %/100). For example, a 15% hike on $50,000 salary: $50,000 × (1 + 15/100) = $50,000 × 1.15 = $57,500. Alternatively, calculate increment amount first and add to current salary.

What is a good salary hike percentage?

A good salary hike percentage typically ranges from 10-15% for standard annual increments. High performers may receive 15-25%, while promotions can result in 20-40% increases. Industry standards vary, with tech and finance often offering higher percentages than other sectors. Job changes typically offer 30-50% increases.

How to calculate 20% hike on CTC?

To calculate a 20% hike on CTC, multiply your current CTC by 0.20 to get the increment amount, then add it to your current CTC. Formula: New CTC = Current CTC + (Current CTC × 0.20) or simplified as New CTC = Current CTC × 1.20. For example: ₹500,000 × 1.20 = ₹600,000, giving an increment of ₹100,000.

Is salary hike calculated on basic or CTC?

Salary hike is typically calculated on CTC (Cost to Company), which includes all components like basic salary, allowances, bonuses, and benefits. However, some companies calculate increments on basic salary only, which results in a lower absolute increase. Always clarify with your HR department which amount the percentage applies to when discussing raises.

How do multiple consecutive hikes work?

Multiple consecutive hikes are applied sequentially, not additively. If you get a 10% hike followed by a 20% hike, your total increase is not 30%. Instead, apply the first hike to your original salary, then apply the second hike to the new amount. Example: $50,000 × 1.10 = $55,000, then $55,000 × 1.20 = $66,000 (total increase of 32%, not 30%).

When should I ask for a salary hike?

Best times to request a salary hike include annual performance reviews, after completing major successful projects, when taking on additional responsibilities, after achieving significant measurable results, or when market rates for your role increase substantially. Avoid asking during company financial difficulties, mass layoffs, or within the first 6 months of employment.

What's the difference between increment and hike?

Increment and hike are often used interchangeably to mean a salary increase. However, "increment" typically refers to the absolute amount added (e.g., ₹10,000 increase), while "hike" usually refers to the percentage increase (e.g., 20% hike). Both result in higher compensation, but they describe the increase differently.