Getting a salary hike is always exciting, but many employees struggle to figure out the exact percentage increase or their new salary after the hike. That's where our salary hike calculator online helps—it instantly shows you the percentage hike or your new salary without manual calculations.
In this article, I'll explain what salary hikes mean, how they're calculated, give real-life examples, and share some tips for negotiating better increments.
What is a Salary Hike?
A salary hike (also called increment or raise) is the increase in your current salary. Companies usually give salary hikes during:
- Annual performance reviews
- Promotions
- Market adjustments (to keep up with inflation or industry standards)
- Job changes (switching companies often brings higher hikes)
How to Calculate Salary Hike Percentage
The formula is very simple:
Hike % = [(New Salary – Old Salary) ÷ Old Salary] × 100
Old Salary = ₹50,000
New Salary = ₹55,000
Hike % = (55,000 – 50,000) ÷ 50,000 × 100 = 10%
If you already know your hike percentage and want to find your new salary, use this formula:
New Salary = Old Salary × (1 + Hike % ÷ 100)
Old Salary = ₹50,000
Hike % = 10%
New Salary = 50,000 × (1 + 0.10) = ₹55,000
Instead of doing the math, you can just use our salary increment calculator to get instant results.
Real-Life Examples
Here are some quick scenarios to understand salary hikes better:
| Current Salary | Hike % | New Salary | Increase Amount |
|---|---|---|---|
| ₹30,000 | 5% | ₹31,500 | ₹1,500 |
| ₹50,000 | 10% | ₹55,000 | ₹5,000 |
| ₹70,000 | 20% | ₹84,000 | ₹14,000 |
| ₹1,00,000 | 25% | ₹1,25,000 | ₹25,000 |
Salary Growth Over Time
If you get regular yearly hikes, your salary compounds and grows faster than you think.
A person earning ₹50,000 with a 10% yearly increment.
| Year | Salary After Hike |
|---|---|
| 1 | ₹55,000 |
| 2 | ₹60,500 |
| 3 | ₹66,550 |
| 4 | ₹73,205 |
| 5 | ₹80,525 |
After 5 years, their salary has increased by more than ₹30,000/month just through increments.
Why Salary Hike Percentage Matters
- Helps you compare job offers and promotions.
- Shows the real impact of your increment beyond just numbers.
- Useful in salary negotiations with HR or your manager.
- Helps in financial planning (EMIs, savings, investments).
Average Salary Hike in India
Based on recent surveys (2023–2025 trends):
- IT sector: 8–12% average hikes.
- Startups: Can go up to 15–20%.
- Government jobs: Fixed increments, usually 3–5%.
- Job switchers: 20–40% hikes are common, depending on skills.
Tips to Negotiate a Better Salary Hike
- Highlight achievements – Show measurable results from your work.
- Know industry benchmarks – Research average salary in your field.
- Improve skills – Upskilling increases your market value.
- Negotiate smartly – Focus on both percentage hike and total compensation.
Final Thoughts
A salary hike is more than just a number—it shows your growth, skills, and market value. Whether you're preparing for an appraisal or switching jobs, our salary increment calculator makes it easy to know exactly how much you're earning extra.