1. What is Salary Hike Percentage?

Salary hike percentage is a measure of the increase in salary from an old amount to a new amount, expressed as a percentage of the original salary. It helps employees understand their salary growth and negotiate better compensation packages.

2. How Does the Calculator Work?

The calculator uses the salary hike percentage formula:

Where:

• \( \text{New Salary} \) — Current or offered salary amount (INR)
• \( \text{Old Salary} \) — Previous salary amount (INR)

Explanation: The formula calculates the percentage increase by finding the difference between new and old salary, dividing by the old salary, and multiplying by 100 to convert to percentage.

3. Importance of Salary Hike Calculation

Details: Calculating salary hike percentage is crucial for salary negotiations, career planning, understanding compensation growth, and making informed decisions about job changes and promotions.

4. Using the Calculator

Tips: Enter both old and new salary amounts in Indian Rupees (INR). Ensure both values are positive numbers. The calculator will automatically compute the hike percentage.

5. Frequently Asked Questions (FAQ)

Q1: What is considered a good salary hike in India?
A: Typically, 10-15% is considered standard for annual increments, while 20-30% or more is common when switching jobs.

Q2: Should I include bonuses in salary calculations?
A: For accurate hike percentage, use fixed salary components. Bonuses and variable pay should be considered separately.

Q3: How does inflation affect salary hikes?
A: A hike below inflation rate means reduced purchasing power. Aim for hikes that exceed inflation to maintain real income growth.

Q4: Can this calculator handle CTC calculations?
A: This calculator works with basic salary amounts. For Cost to Company (CTC), consider all components separately for accurate comparison.

Q5: What if my hike percentage is negative?
A: A negative percentage indicates a salary decrease, which is unusual and should be carefully reviewed with your employer.