salarysaathi

CTC hike vs. real take-home

Salary Hike Calculator

A CTC hike percentage and an in-hand salary increase percentage aren't the same number — EPF and gratuity provisions scale with your CTC too. This runs your old and new CTC through the same in-hand calculation to show the real, effective increase in your take-home pay.

This is an estimate based on a standard CTC structure — it runs your current and hiked CTC through the same EPF wage-ceiling logic as the in-hand salary calculator, assuming your Basic % and years of service stay the same before and after the hike. It excludes state Professional Tax, income tax (TDS), and any change to your allowance structure that might come with the raise — a hike can also push you into a higher TDS deduction, which would reduce your real increase further; check the TDS calculator separately for that. Verify with your payroll team before relying on this figure.
₹

The % increase in your CTC — usually stated in your appraisal letter.

Most private-sector CTC structures set Basic between 35% and 50% of CTC — check your offer letter or payslip. Assumed unchanged after the hike.

Used only for the gratuity provision inside the in-hand calculation, same on both sides of the hike.

Salary Hike Impact

SALARY HIKE IMPACT
Nominal CTC hike 0%
New Annual CTC ₹0
Old in-hand salary (annual) ₹0
New in-hand salary (annual) ₹0
Increase in in-hand salary +₹0

EFFECTIVE IN-HAND INCREASE

0%

Enter your CTC and hike % above to compare.

Monthly in-hand: ₹0 → ₹0

PROJECTED

Employee PF is capped at the ₹15,000/month EPF wage ceiling; gratuity uses the standard formula (Basic × 15/26 × years of service) — the same logic as the in-hand salary calculator, run once for your old CTC and once for your new CTC.

Frequently asked questions

Why isn't my in-hand increase the same percentage as my CTC hike?

Employee and employer PF contributions are capped at the ₹15,000/month EPF wage ceiling. If your Basic salary is already above that ceiling — common once CTC crosses roughly ₹4.5 lakh — your PF contribution grows by less than your CTC does after a hike, so more of the raise flows straight through to your take-home than the CTC % alone suggests. Gratuity provision scales in step with your CTC either way, so on its own it doesn't create a gap.

Does this account for a change in income tax (TDS) after the hike?

No — this calculator only mirrors the CTC-to-in-hand derivation used by the in-hand salary calculator, which doesn't model income tax. A CTC hike often pushes you into a higher TDS deduction too, which would shrink your real take-home increase further than what's shown here. Use the TDS calculator separately with your new gross salary to check that.

What if my CTC structure changes with the hike, not just the total?

This calculator assumes the same Basic % (and years of service, for the gratuity provision) apply before and after the hike — a straightforward proportional increase. If your appraisal also restructures your CTC breakup — a different Basic %, a new allowance — enter your post-hike Basic % here instead, since that's not something this tool can infer on its own.