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Free HR template

Salary hike calculator

Find the new salary from a hike percentage, or the hike percentage between two salaries. Then put the numbers into a salary increment letter you can download. Free, with no sign-up.

Hike % = (new salary − current salary) ÷ current salary × 100.

New salary a year

₹6,60,000

₹55,000 a month

Increase a year

₹60,000

₹5,000 more a month

Salary increment letter

Fill in the employee's details and download the letter as a PDF or Word file. If they were promoted, add the new designation and the letter says so.

Filled in with an example. Change any field and the increment letter updates.

Your company

Shown under the company name at the top of the page.

Employee
Salary

₹6,00,000 (Six Lakh)

Signed by

Brightway Retail Pvt. Ltd.

4th Floor, Prestige Towers, MG Road

Bengaluru, Karnataka 560001

Date: 2 November 2026

To,

Priya Sharma

Employee ID: BW-1042

Store Manager

Subject: Salary revision

Dear Priya,

We are pleased to tell you that your salary has been revised, in recognition of your work and contribution.

Your annual cost to company (CTC) will be Rs. 6,60,000 (Rupees Six Lakh Sixty Thousand only) from 1 December 2026. Your current annual CTC is Rs. 6,00,000, so this is an increase of Rs. 60,000, or 10%.

All other terms of your employment stay the same. Please keep the details of this letter private.

Congratulations, and thank you for your work. We look forward to your continued growth with us.

Yours sincerely,

For Brightway Retail Pvt. Ltd.

Anita Rao

HR Manager

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How to calculate a salary hike

New salary = current salary × (1 + hike % ÷ 100). A 10% hike on ₹6,00,000 is ₹60,000, so the new CTC is ₹6,60,000.

To find the hike %, take the current salary away from the new one, divide by the current salary and multiply by 100. ₹60,000 ÷ ₹6,00,000 × 100 = 10%.

Take-home pay rises a little less than the hike

A hike in CTC does not raise take-home pay by the same percentage. When basic pay goes up, PF goes up with it. A higher salary can also mean more income tax. So the monthly amount in the bank usually rises a bit less than the hike.

Only need the letter?

If you already know the new salary, go straight to the increment letter page. It explains what to put in the letter and when the new salary should start.

Make a salary increment letter

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FAQ

Questions about the salary hike calculator

Is this free to use?
Yes. There is no sign-up and no limit. The document is made in your browser, so Goodfit never sees or stores what you type.
Is the hike worked out on CTC or on in-hand salary?
Most companies give the hike as a percentage of CTC. Choose "Per month" if you want to work from a monthly figure instead. The calculator shows both the yearly and monthly amounts.
How do I work out the monthly increase?
Divide the yearly increase by 12. A ₹60,000 yearly increase is ₹5,000 more a month in CTC.

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