Salary hike calculator · new regime, tax year 2026-27
Salary hike calculator, from hike % to new in-hand.
Enter your current CTC and the hike, as a percentage or as the new CTC. The calculator works out the new CTC and the hike %, then builds both salaries line by line, so you see what reaches the bank each month.
The short answer
A hike is worked on CTC: new CTC = current CTC × (1 + hike % ÷ 100). In-hand rises by a different percentage, because PF stops at its ceiling, professional tax is a flat amount and income-tax rises in slabs. On Paiteq's structure in Bengaluru, a 15% hike on ₹12,00,000 makes the CTC ₹13,80,000 and in-hand ₹1,02,980 a month in October 2026, up ₹12,639 or 14.0%; the new salary crosses the ₹12,75,000 line below which the new regime charges no tax, so ₹1,811 a month of TDS starts.
Salary hike calculator
₹13,80,000 a year
- In-hand a month · Oct 2026
- ₹90,341 → ₹1,02,980
- More each month
- +₹12,639 · +14.0%
- In-hand a year
- ₹10,83,995 → ₹12,35,664
because in-hand rises by 14.0%, less than the 15% hike: the new salary passes the line below which the new regime charges no tax, so TDS of ₹1,811 a month starts; PF stays at ₹3,000 and PT at ₹200.
See the full breakup on ₹13,80,000 ↓Paiteq's structure · Design preview · sample data
What changes, line by line
| October 2026 | On ₹12,00,000 | On ₹13,80,000 | Change |
|---|---|---|---|
| CTC a month | ₹1,00,000 | ₹1,15,000 | +₹15,000 |
| Gross salary | ₹93,541 | ₹1,07,991 | +₹14,450 |
| Employee PF, 12% | ₹3,000 | ₹3,000 | ₹0 |
| Professional tax, Karnataka | ₹200 | ₹200 | ₹0 |
| Income-tax (TDS), new regime | ₹0 | ₹1,811 | +₹1,811 |
| In-hand | ₹90,341 | ₹1,02,980 | +₹12,639 |
Your new salary, one month and one year
In-hand, October 2026
₹1,02,980
a year ₹12,35,664 · an average month ₹1,02,972
- 01CTC
- ₹1,15,000
a year ₹13,80,000
because CTC is the employer's yearly cost for the role; a month is one-twelfth
- 02Employer PF
- ₹3,000
a year ₹36,000
because 12% of the ₹25,000 ceiling: Code wages of ₹83,391 are above it; it goes to the PF account, not to the salary
- 03Gratuity provision
- ₹4,009
a year ₹48,110
because 15 days' Code wages a year (₹83,391 × 15 ÷ 26 ÷ 12 a month) are set aside; gratuity is paid at exit, after 5 years of service
- 04Gross salary
- ₹1,07,991
a year ₹12,95,890
because Basic ₹57,500, HRA ₹23,000, fixed allowances ₹1,600 and special allowance ₹25,891, the balance of CTC
- 05Employee PF, 12%
- ₹3,000
a year ₹36,000
because 12% of the ₹25,000 ceiling: Code wages of ₹83,391 are above it; it is the employee's own savings in the PF account
- 06Employee ESI, 0.75%
- ₹0
a year ₹0
because Code wages of ₹83,391 are above the ₹21,000 ceiling, so ESI does not apply
- 07Professional tax, Karnataka
- ₹200
a year ₹2,500
because ₹200 a month, ₹300 in February
- 08Income-tax (TDS), estimate
- ₹1,811
a year ₹21,726
because tax of ₹21,726 for the year on taxable salary of ₹12,20,890, new regime, spread over 12 months
- 09In-hand
- ₹1,02,980
a year ₹12,35,664
because gross salary less PF, ESI, PT and TDS: what reaches the bank account; the year counts February's PT
Salary structure, a month
- Basic
- ₹57,500
because 50% of CTC, a month
- HRA
- ₹23,000
because 40% of Basic
- Fixed allowances
- ₹1,600
because entered, a month; conveyance and the like are excluded items under the Code
- Special allowance
- ₹25,891
because the balance: CTC less every other line
Code wages check, the 50% rule
Excluded items are 24.87% of total remuneration, within half, so nothing is added back.
- Wages: Basic + special allowance
- ₹83,391
because Basic and any allowance not on the excluded list count as wages
- Excluded items
- ₹27,600
because HRA ₹23,000, fixed allowances ₹1,600 and employer PF ₹3,000
- Total remuneration
- ₹1,10,991
because wages plus excluded items, the employer's PF included
- Half of it
- ₹55,495
because excluded items may not pass half of total remuneration
- Added back
- ₹0
because excluded items stay within half
- Code wages
- ₹83,391
because wages plus anything added back: PF, ESI and gratuity are worked on this
How the TDS estimate is worked out
- Gross salary for the year
- ₹12,95,890
because 12 months of this structure; HRA is taxable in full under the new regime
- Standard deduction
- ₹75,000
because the new regime allows it on salary, and PF and PT do not reduce taxable income
- Taxable salary
- ₹12,20,890
because no other income, deduction or previous employer is entered
- Tax on the slabs
- ₹63,134
because 5% on ₹4,00,000, 10% on ₹4,00,000, 15% on ₹20,890
- Marginal relief
- − ₹42,244
because just above the rebate limit, tax may not exceed the income above it
- Cess, 4%
- ₹836
because on tax plus surcharge
- Tax for the year
- ₹21,726
because rounded to the rupee; ₹1,811 a month if spread evenly
An estimate before investments and other income: it assumes this is your only income, a full year with this employer and no employer NPS. Your employer's TDS follows your declarations and can differ month to month.
Not tax or legal advice. The TDS line is an estimate before investments and other income, for a resident employee with a full year at this employer. The worked figures use Paiteq's offer structure, which is sample data.
Key facts
- A hike is applied to CTC; in-hand follows from the rebuilt structure.
- New regime, tax year 2026-27: a resident with no other income pays no income-tax on salary up to ₹12,75,000 a year.
- PF is 12% of PF wages up to ₹25,000 a month from 17 Sep 2026, so above that a hike does not raise PF unless both sides opt for full wages.
- ESI applies while Code wages stay within ₹21,000 a month; professional tax is a state slab, never above ₹2,500 a year.
Official sources
- Income-tax Act, 2025 as amended by the Finance Act, 2026: slabs, standard deduction, rebateofficial
- Notification S.O. 5109(E): EPF wage ceiling of ₹25,000 from 17 Sep 2026official
- Additional FAQs on Labour Codes (16.03.2026): PF wages are Code wagesofficial
- ESIC coverage: Code wages up to ₹21,000official
- Karnataka professional taxsecondary
Income Tax Department, Ministry of Labour, EPFO, ESIC and state tax departments · checked by the LekhaHR team, reviewed 19 Oct 2026
No. 01
The formula
How do I calculate a salary hike?
Apply the percentage to CTC, then rebuild the salary from the new CTC. The calculator does both.
The formula
new CTC = current CTC × (1 + hike % ÷ 100)
hike % = (new CTC − current CTC) ÷ current CTC × 100
₹12,00,000 × 1.15 = ₹13,80,000; and (₹13,80,000 − ₹12,00,000) ÷ ₹12,00,000 × 100 = 15%.
Write it up with the increment letter format, old and new pay side by side.
No. 02
By CTC
What does a 10% hike add to in-hand salary?
A 10% hike at four of Paiteq's offer levels, Bengaluru, October 2026, new regime.
| Paiteq offer | 10% hike to | In-hand a month before | After | More a month | Why it differs from 10% |
|---|---|---|---|---|---|
| ₹3,00,000 | ₹3,30,000 | ₹19,971 | ₹21,924 | +₹1,953 · 9.8% | ESI and PF rise with pay |
| ₹6,00,000 | ₹6,60,000 | ₹42,176 | ₹46,993 | +₹4,817 · 11.4% | PF stays at ₹3,000, no income-tax either side |
| ₹12,00,000 | ₹13,20,000 | ₹90,341 | ₹99,974 | +₹9,633 · 10.7% | PF stays at ₹3,000, no income-tax either side |
| ₹18,00,000 | ₹19,80,000 | ₹1,27,664 | ₹1,39,109 | +₹11,445 · 9.0% | tax rises ₹36,066 a year |
₹3,00,000 → ₹3,30,000
- In-hand
- ₹19,971 → ₹21,924
- More
- +₹1,953 · 9.8%
- Why
- ESI and PF rise with pay
₹6,00,000 → ₹6,60,000
- In-hand
- ₹42,176 → ₹46,993
- More
- +₹4,817 · 11.4%
- Why
- PF stays at ₹3,000, no income-tax either side
₹12,00,000 → ₹13,20,000
- In-hand
- ₹90,341 → ₹99,974
- More
- +₹9,633 · 10.7%
- Why
- PF stays at ₹3,000, no income-tax either side
₹18,00,000 → ₹19,80,000
- In-hand
- ₹1,27,664 → ₹1,39,109
- More
- +₹11,445 · 9.0%
- Why
- tax rises ₹36,066 a year
Computed with the salary calculator on Paiteq's structure (design preview · sample data). ESI applies at ₹3,00,000 because Code wages stay within ₹21,000.
No. 03
Questions
Salary hike questions
How do I calculate my salary hike percentage?
Hike % = (new CTC − current CTC) ÷ current CTC × 100. From ₹12,00,000 to ₹13,80,000 is ₹1,80,000 more, which is 15% of ₹12,00,000.
How much will my in-hand salary increase after a 10% hike?
Usually more than 10% while PF is capped and income-tax is nil, and less once tax starts. On Paiteq's structure: ₹42,176 becomes ₹46,993 a month at ₹6,00,000 (11.4% more), and ₹1,27,664 becomes ₹1,39,109 at ₹18,00,000 (9.0% more).
Is a hike calculated on CTC or on gross salary?
On CTC, in almost every offer and increment letter. The calculator applies the hike to CTC and rebuilds the structure, so Basic, HRA and the special allowance all move.
Does a hike change my PF?
Only below the ceiling. PF is 12% of PF wages up to ₹25,000 a month from 17 Sep 2026, so at ₹6,00,000 and above on this structure employee PF stays ₹3,000 a month after the hike.
What hike do I need to reach a target in-hand?
Switch the top of the calculator to “New CTC”, or use the salary calculator's in-hand mode to work back from a monthly figure; the hike % is shown against your current CTC.
For employersLekhaHR is HR and payroll software for small Indian teams. See payroll →