Salary Hike Take-Home
India Uses Indian income-tax, provident fund, ESI and professional tax rules.
Enter your current CTC and your increment percentage to see what the raise is actually worth in your bank account. A 10 per cent CTC hike is rarely 10 per cent more in hand.
Educational estimate only. Not a lending decision. Your numbers stay in this browser.
Results
How to read this: the verdict describes how much room your numbers leave, not a decision or an offer. Change any input to see how much the result moves.
Assumptions and formula
The calculator runs the full salary and tax computation twice, once on your current CTC and once on the increased CTC, and reports the difference in monthly take-home. Part of any increase is diverted into your own provident fund, part into employer provident fund and gratuity accrual that never leave CTC, and the remainder is taxed at your marginal rate.
Income tax, EPF, ESI and gratuity rules run locally from rule data verified against the Income Tax Department, EPFO, ESIC and the Code on Wages. Professional tax is a state levy: schedules confirmed against the state own notification are labelled as such, and a state whose schedule is not sourced is never silently treated as nil. This is an estimate, not a payslip, a Form 16 or tax advice.
Worked example
A 10 per cent hike on a 12,00,000 package raises CTC by 1,20,000 a year, but take-home typically rises by 6 to 8 per cent once provident fund, gratuity accrual and tax on the additional income are taken out.
Frequently asked questions
How much will a 10 per cent hike actually add to my salary?
Usually 6 to 8 per cent in hand rather than 10. Part of the increase goes into your own PF, part into the employer’s PF and gratuity accrual which stay inside CTC, and the remainder is taxed at your marginal rate. This calculator shows what the next ₹1,00,000 of CTC actually adds to your bank account.
Why is my in-hand salary so much lower than my CTC?
CTC includes money that never reaches your bank account. Your employer’s provident fund contribution, gratuity accrual, employer NPS and any insurance premium are all counted inside CTC but are never paid to you as cash. Your own PF, professional tax, ESI and TDS then come out of what is left. The gap between CTC and cash is usually 20 to 30 per cent.
Should I choose the new tax regime or the old one?
The new regime is the default and wins for most people because its slabs are wider and it gives a ₹75,000 standard deduction with no paperwork. The old regime only wins if you have substantial deductions — typically rent paid with HRA, a full ₹1.5 lakh under Section 80C, health insurance under 80D and home loan interest under Section 24(b). This calculator computes both on your actual numbers and tells you how much extra deduction the old regime would need to overtake the new one.
What are the new labour codes doing to my salary?
The Code on Wages came into force on 21 November 2025. It says that where allowances such as HRA and conveyance exceed half of your total package, the excess is added back to “wages” for statutory purposes. Provident fund and gratuity are then computed on that higher base. Your gross pay does not change, but more of it is diverted into PF and gratuity, so take-home falls slightly while your retirement corpus grows.