Salary Hike Calculator - Salary Hike Percentage Calculator For Payroll In India

Use our salary hike calculator to calculate the new salary after the hike. Also, calculate the hike percentage with your new salary.

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Your new salary after the hike is : ₹14,234

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Your hike percentage is : 20%

Salary hike: What is a hike in salary?

A salary hike, also known as an increment is an increase in the current wage by a fixed percentage. This is expressed as a percentage of the current salary and is known as the percentage hike.

Read: Monetary benefits for employees

How to calculate new salary using hike percentage?

Here is how you can calculate the new salary after a hike using the hike percentage.

Step 1: Convert the hike percentage into decimals.
Step 2: Multiply it by your current salary. Now, this is your increment/hike amount.
Step 3: Add the hike amount to your current salary. The result is your new net salary after the hike.

Salary hike formula

Let us understand the math by calculating 30% hike in salary.

Step 1: Now 30% hike is 30/100 which is 0.3.
Step 2: Let us imagine the current salary being ₹20,000. So, 20,000*0.3 is ₹6000.
Step 3: Adding the increment of ₹6000 to the current salary makes it ₹26,000. Now this is the new net salary after the hike.

How to calculate the salary hike percentage?

Here is how you can calculate the salary hike percentage.

Step 1: Calculate the difference between your new salary after the hike and your old salary.
Step 2: Divide the result by your old salary.
Step 3: Multiply the obtained number by 100. Now, this is your hike percentage with respect to your old salary.

Salary hike percentage calculation formula

Let us understand this with an example.

Let us imagine the new salary to be ₹25,000 and the old salary to be ₹20,000.
Step 1: The difference between the new and old salary is ₹5000
Step 2: Now, 5000/20000 is 0.25.
Step 3: Multiplying 0.25 with 100 gives you 25. Hence, the salary hike is 25%.
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Also read: What is variable comp and fixed comp?

Calculating a 40% Salary Increase

To determine a 40% increase in your salary, follow these straightforward steps:
‍Know Your Current Salary: Start with the exact amount of your present earnings.
‍Calculate the Increase: Multiply your current salary by 0.40. This step will give you the amount of the increase.
‍Calculate the New Salary: Add the increase to your current salary to find the new total.

Example:
‍Current Salary: $50,000
‍40% Increase Calculation: $50,000 x 0.40 = $20,000
‍New Salary: $50,000 + $20,000 = $70,000By following these steps, you can easily determine what your new salary will be with a 40% hike.

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FAQs on salary hike calculator

Why are salary hikes given?

Employers award salary hikes based on several factors, including:
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Performance: Recognition of the employee's accomplishments and contributions.
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Experience: Reward for the skills and expertise that come with professional tenure.
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Inflation: Adjustment to keep up with the cost of living increases.
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Market Conditions: Alignment with industry standards and economic conditions to retain talent.

How can a salary hike calculator help me?

A salary hike calculator helps you understand how much your pay will increase with a given raise percentage. You can calculate your new salary by inputting your current salary and the proposed hike percentage. This tool is invaluable for planning your finances and setting realistic expectations in salary negotiations.

What should I consider when negotiating a salary hike?

When negotiating a salary hike, consider the following:

Your Performance: Be prepared to discuss your achievements and how they've benefited the company.

Market Value: Research what others in similar roles and with similar experience are earning.‍

Company's Financial Health: Consider the current financial status of the company and industry trends.

Expected Inflation Rates: Discuss how inflation affects living costs and the need for compensation adjustments.

How does inflation affect salary hikes?

Inflation can significantly impact salary hikes as it affects the overall cost of living. Employers may offer salary increases to ensure that employee wages are sufficient to meet higher living costs, maintaining employee satisfaction and financial stability.

What is the importance of understanding percentage hikes in salary negotiations?

Understanding how percentage hikes work helps you evaluate the real value of the proposed increase. It enables you to compare your new potential earnings against market rates and inflation, ensuring that the hike meets your financial and professional growth needs.

Can using a salary hike percentage calculator improve my financial planning?

Absolutely. By calculating your new salary after a proposed hike, you can better plan your budget, savings, and investments based on your new income. This planning is crucial for long-term financial health and achieving personal financial goals.