Salary Hike Calculator

Understanding Salary Hikes

A salary hike is an increase in your pay, typically given annually as a percentage of your current salary. It can be a reward for good performance, a cost-of-living adjustment, or a result of a promotion. Calculating your new salary helps you understand your new financial standing and plan your budget accordingly.

Key Factors Explained

• Current Annual Salary: This is your gross annual salary before any taxes or deductions. The hike percentage is almost always applied to this base figure.
• Hike Percentage: The percentage increase you are offered. This can vary widely based on company policy, industry standards, and your individual performance.

The Formula

The calculation to determine your new salary is straightforward:

Frequently Asked Questions (FAQ)

How do I negotiate a better salary hike?

To negotiate effectively, research industry salary benchmarks for your role and experience, document your achievements and contributions to the company over the past year, and be prepared to articulate your value clearly and professionally.

Is the hike percentage based on gross or net salary?

Salary hikes are almost always calculated based on your gross (pre-tax) salary. Your new net (take-home) pay will depend on your tax bracket and other deductions.

What is an average salary hike?

This varies significantly by industry, country, and economic conditions. A typical annual hike for meeting expectations might be 3-5% (often aligned with inflation). Hikes for high performers or promotions can be substantially higher, often ranging from 10% to 20% or more.

For a more in-depth guide, read our detailed article on this topic.