Salary Hike Calculator

The average salary hike in India for 2026 is projected to be around 9-10% across industries. IT and tech sectors typically offer 10-15%, while manufacturing and traditional sectors offer 7-9%. Top performers can expect 15-25% hikes, and promotions often come with 20-40% increases. These are averages and actual hikes depend on company performance, individual contribution, and market conditions.

To calculate salary hike percentage: Hike % = ((New Salary - Old Salary) / Old Salary) × 100. For example, if your salary increased from ₹50,000 to ₹57,500, the hike percentage is ((57,500 - 50,000) / 50,000) × 100 = 15%. This formula works for both monthly and annual salaries.

Yes, salary negotiation during appraisal is common and expected. Before negotiating, research market rates for your role using salary surveys, document your achievements and value addition to the company, prepare quantifiable data about your contributions, and know your BATNA (Best Alternative to Negotiated Agreement). Be professional, focus on your value, and avoid ultimatums. Many companies have 10-20% negotiation room beyond initial offers.

Several factors influence salary hike: 1) Individual performance ratings (top performers get 2-3x average hikes), 2) Company financial health and profitability, 3) Industry trends and demand for your skills, 4) Market compensation benchmarks, 5) Your tenure and experience level, 6) Whether it's a promotion vs. annual increment, 7) Economic conditions and inflation, 8) Your negotiation skills and market alternatives.

TallyPrime's payroll module streamlines salary revision processes for businesses. HR teams can easily update salary structures for individual employees or process bulk revisions during appraisal season. The software automatically recalculates PF, ESI, PT, and TDS based on new salaries, generates revised salary slips, and maintains audit trails of all changes. This eliminates manual calculation errors and ensures compliance with statutory requirements during salary updates.