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Finance / India Tax
See what a CTC hike is actually worth in your bank account, after tax — because the net percentage increase is usually smaller than the gross one.
This calculator computes take-home pay (via the same PF → income tax → professional tax model as the Take Home Salary Calculator) once at your current CTC and once at the hiked CTC (current CTC × (1 + hike%)), then compares the two net figures as a percentage change. The gross hike percentage and the net hike percentage are usually different numbers, and the net one is usually smaller — because India's income tax is progressive: as your CTC rises, the incremental income from the hike can be taxed at a higher marginal slab rate than your average rate on the rest of your salary, even though your average rate on the whole CTC also ticks up only gradually. A hike that pushes part of your income into a new, higher slab loses more of itself to tax than a hike that stays within your current slab. Simplifications stated explicitly: this inherits every assumption of the Take Home Salary Calculator (PF as a % of full CTC rather than basic only, Maharashtra's professional tax slab, no surcharge above ₹50L, no old-regime deductions beyond the standard deduction) and assumes the entire hike is a straightforward CTC increase, not a mix of fixed and variable pay. Figures reflect FY 2025-26 rules.
It's not always lower — but it usually is, and never higher, because income tax is progressive. If your hike keeps you entirely within your current tax slab, the net and gross percentages can be nearly identical (see the first example). But if any part of the raise pushes into a higher slab, that portion is taxed more heavily, pulling the net percentage below the gross one.
Not necessarily — it depends on where your current CTC sits relative to the slab boundaries, not just the size of the hike itself. A 10% hike that crosses a slab boundary can shrink more (in percentage terms) than a 20% hike that doesn't cross one.
No — it applies the same employee PF percentage to both the current and hiked CTC. If your employer changes your PF contribution rate alongside a raise, your actual net hike will differ from this estimate.