What's a good annual hike in India?

Industry average is 8–10%. Top performers: 15–25%. Switching companies typically brings 25–40%. Anything below inflation (6%) is effectively a pay cut.

Does the hike apply on basic or CTC?

Usually CTC, but components shuffle. Watch your basic + HRA — flat basic with growing variables means stagnant PF contribution.

Should I increase SIPs by full hike amount?

Aim for 50% as a rule of thumb — you deserve some lifestyle upgrade. The remaining 50% on autopilot SIP keeps you ahead of peers.

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Income

Salary Hike Calculator

Compute your new CTC, monthly take-home boost and a recommended SIP step-up.

Inputs

Current annual CTC

₹1,00,000₹12,00,000₹5,00,00,000

Hike percentage

0%Industry average: 8–10%100%

Your new salary

Current CTC

₹12,00,000

per year

New CTC

₹14,16,000

per year

Annual increase

₹2,16,000

Monthly increase

₹18,000

Smart use of your hike

Step up your SIP by ₹9,000 (half the monthly increase) at 12% for 10 years to build:

₹20,91,052

That’s ₹10,11,052 in pure growth on top of ₹10,80,000 invested.

Make every hike count

Salary hikes are easy to spend before they hit your account. A disciplined plan: route 50% of every raise straight into SIPs before lifestyle inflation eats it.

Most people experience 'lifestyle creep' — your spending rises to match income, leaving savings rate flat. Step-up SIPs counter this automatically.

Hike math

New CTC = Current CTC × (1 + Hike%)

Current CTC — Existing annual CTC
Hike% — Percentage increase
Annual increase = New CTC − Current CTC
Monthly increase = Annual increase / 12

Example: ₹12L CTC + 18% hike

Current CTC: ₹12,00,000
Hike: 18%
New CTC: ₹14,16,000
Annual increase: ₹2,16,000
Monthly increase: ₹18,000

Routing 50% of the ₹18K monthly increase into a SIP (₹9K/mo, 12%) builds ₹19.4L over 10 years.

Frequently asked

Smart use of a hike

1Increase SIPs by half the hike percentage — compounds dramatically over a career.
2Top up emergency fund if income just rose materially.
3Increase term insurance cover to 10× new annual income.
4Restructure tax-saving investments at higher slab.
5Pay one extra EMI per year on home loan from the bonus.

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