A 30% hike on paper rarely means 30% more money in your account. Tax rises faster than salary once you cross the ₹12 lakh rebate limit, so the in-hand increase is often smaller than the CTC increase. This calculator shows both.
How a hike is calculated
Hike % = (new CTC − current CTC) ÷ current CTC × 100New CTC = current CTC × (1 + hike % ÷ 100)In-hand rise % = (new monthly in-hand − current monthly in-hand) ÷ current monthly in-hand × 100The in-hand figures assume the new tax regime, basic pay at 50% of CTC, capped PF and ₹2,400 professional tax, the same as the CTC to in-hand calculator.
Why in-hand grows slower than CTC
| CTC change (30% hike) | Monthly in-hand before → after | In-hand rise |
|---|---|---|
| ₹8 lakh → ₹10.4 lakh | ₹62,867 → ₹82,867 | 31.8% |
| ₹12 lakh → ₹15.6 lakh | ₹96,200 → ₹1,17,576 | 22.2% |
| ₹20 lakh → ₹26 lakh | ₹1,47,208 → ₹1,84,178 | 25.1% |
At ₹8 lakh both salaries stay under the rebate, so in-hand rises a little more than CTC (PF is capped). Going from ₹12 lakh to ₹15.6 lakh crosses the ₹12.75 lakh tax-free point, and tax of about ₹1 lakh appears, so only 22% of the 30% hike shows up in your account.
What's a good hike in India?
Annual appraisals in India commonly range from about 5–12%, with top performers getting more. Job switches usually bring larger jumps, often 20–40%, more in high-demand skills. Compare any hike with inflation, which has swung between roughly 2% and 6% in recent years: a raise below inflation is a pay cut in real terms. The inflation calculator shows the effect over time.
When negotiating, talk about the fixed component and in-hand pay, not just CTC, and get the full salary breakup in writing.
How to use this calculator
- Enter your current CTC.
- Enter either the hike percentage or the new CTC.
FAQs
Why is my in-hand rise smaller than my hike?
Higher pay can move part of your income into a higher tax slab, and PF and tax rise with salary.
Sources
- Business Today: tax slabs for FY 2026-27 after Budget 2026
- Income Tax Department: tax rates and surcharge
- ClearTax: Income-tax Rules 2026 and HRA cities
- ClearTax: Section 44ADA presumptive tax
- ThePrint (PTI): EPF rate of 8.25% for 2025-26 ratified
Results are estimates and aren't financial advice. For decisions about your own money, check with a qualified adviser. Spotted a mistake? Tell us.