1. What Is CTC Hike Percentage?

CTC (Cost to Company) hike percentage represents the percentage increase in an employee's total compensation package when moving from one job to another or during salary revisions within the same organization. It helps employees understand the real value of their salary increase.

2. How Does The Calculator Work?

The calculator uses the hike percentage formula:

Where:

• \( \text{New CTC} \) — New Cost to Company salary package (INR)
• \( \text{Old CTC} \) — Previous Cost to Company salary package (INR)

Explanation: This formula calculates the relative increase in salary as a percentage of the original salary, providing a clear measure of salary growth.

3. Importance Of Hike Percentage Calculation

Details: Calculating hike percentage is essential for employees to evaluate job offers, negotiate salaries, and make informed career decisions. It helps compare different compensation packages objectively and understand the real value of salary increments.

4. Using The Calculator

Tips: Enter both Old CTC and New CTC in Indian Rupees (INR). Ensure both values are positive numbers. The calculator will automatically compute the percentage hike between the two salary figures.

5. Frequently Asked Questions (FAQ)

Q1: What is considered a good hike percentage?
A: A good hike typically ranges from 15-30% when changing jobs, though this varies by industry, experience level, and market conditions. Internal promotions usually offer 8-15% increases.

Q2: Does CTC include all components?
A: Yes, CTC includes basic salary, allowances, bonuses, provident fund, gratuity, and other benefits. It represents the total cost the company incurs for an employee.

Q3: How is hike percentage different from increment?
A: Hike percentage refers to the overall increase when changing jobs, while increment typically refers to annual salary increases within the same organization.

Q4: Should I consider only CTC for job decisions?
A: While CTC is important, also consider take-home salary, work culture, growth opportunities, job role, and other benefits before making career decisions.

Q5: Can hike percentage be negative?
A: No, if New CTC is lower than Old CTC, it indicates a salary decrease rather than a hike. The calculator will show a negative percentage in such cases.