Salary Hike Calculator

The Salary Hike Calculator calculates a salaried person's hike based on the expected hike percentage or expected hike amount. The calculator instantly shows the new salary based on the current salary and the expected hike without any manual effort.

How to Calculate Salary Hike Percentage?

Salary hike percentage can be done on the salary hike calculator with 3 easy steps. Here's the detailed step-by-step process to calculate:

• Step 1: Select the type of salary hike from the selection
  • By Hike Percentage
  • By Salary Amount
• Step 2: Enter the Current Salary amount
• Step 3: Enter the New Salary Amount / Hike Percentage based on the type of selection

The salary hike calculator will instantly show the new salary amount/hike percentage based on your inputs.

Salary Hike Calculation Formula

Salary hike can be calculated using the basic mathematical formula mentioned below,

Salary Hike Percentage = (New Salary − Current Salary) / Current Salary ×100

Where,

• New Salary: Expected or updated salary after the hike.
• Current Salary: Current or old salary before the hike.

Salary Hike Calculation Example

Let’s take a person named Rahul whose current salary is Rs 7,00,000 per annum, and his salary was increased to Rs 7,70,000 per annum after a performance review by his organisation.

Let’s calculate Rahul’s hike percentage using the formula (New Salary − Current Salary) / Current Salary × 100

• = ((770000 - 700000)/700000) × 100
• = 70000/700000 × 100
• = 0.10 × 100
• = 10%

Salary Hike Types in India

• Annual Appraisal: Annual Appraisal Hike is a general hike given to all employees based on the yearly performance of the employees.
• Performance Hike: Performance Hike is a special hike given to the employees as a part of recognising their performance.
• Promotion Hike: A special hike given to the employees by promoting their designation based on their performance and experience.
• Market Adjustment / Correction: In case of a market adjustment hike, the companies usually observe the rise in salaries in the market and provide hikes to the employees to stop them from leaving the company.
• Job Switch: Whenever employees switch their job, they get a hike on their current salary as per the new company’s budget and the industry norms.
• Retention / Counter Offer: In case of retention, if the employee gets an offer in any other company and the company wishes to retain the employee, the offer received from the other company will be matched.

Benefits of Salary Hike Calculator

A Salary Hike Calculator allows you to estimate your revised salary after a pay increase, making it easier to understand the impact of a potential increment. Let’s look at some of the main advantages this tool offers.

• Accuracy: Calculates salary hikes accurately, reducing manual errors.
• Transparency: Clearly shows how your revised salary is calculated.
• Comparison: Helps compare different hike percentages or amounts with ease.
• Salary Negotiation: The calculator provides users with accurate salary estimates to help negotiate a hike with more confidence.
• Time-Saving: The calculator delivers instant results, eliminating the need for manual calculations and saving a lot of time.

A Salary Hike Calculator reduces the manual calculation process of estimating salary increases during performance reviews or job shifts. It helps individuals calculate hike percentages accurately based on the expectations and actuals.