Salary Hike Calculator

When using the hike calculator, the users need to input their present salary data. The salary details entered should be inclusive of any additional benefits, bonuses, or other perks.

The salary hike calculator will ask the users to enter the details about the proposed salary. This includes several factors such as a defined amount of raise, an increase or decrease in the benefits or perks provided by the company, and a percentage increase from the current salary.

After entering the details of the present salary and the proposed salary, the salary hike calculator implements an inherent formula to compute the raise in salary in percentage format. This includes calculating the difference between the proposed salary and the present salary, dividing the figure by the present salary, and multiplying by 100 to get the exact value of the percentage increase.

After the percentage increase is calculated, the salary hike calculator shows the final salary inclusive of the hike. The updated figure gives the users the required clarity about the new salary structure and can help them in financial planning.

There are some high-tech salary hike calculators having advanced features to compare and analyze the salary hike with charts or graphs to get insights on the impact of the change in the salary structure and different measures to consider for financial planning and tax deductions.

This is the employee's current salary. The company computes this salary based on the employee's capabilities, performance, and skillset. This is also known as the base salary, upon which other additions are made, such as house rent allowance, provident fund, and gratuity.

This is an allowance offered by the company to cover the rent expenses of an employee. For example, a company pays out the rent of an employee living in an apartment. However, the house rent allowance does not include any form of tax benefits. Only a part of it is tax-exempt under Section 10(13A) of the Income Tax Act, 1961.

Gratuity is a fixed compensation that a company pays to its employees after they have spent almost 5 years of continuous service in the company. Few companies may deduct gratuity from the employee's salary; hence, it also forms an element of the current salary.

Some firms may also offer a leave travel allowance, which is compensation to cover expenses for employees during their travelling. If an employee has to travel around for the work of the company, the travelling expenses are covered by this allowance. This is usually included within the current salary.

A corporate tax is deducted from the current salary of an employee. This type of tax is usually not tax exempted, unless in specific situations. Read more to find out about the tax exemptions and strategies to file for corporate tax returns.

This is a specific contribution made by both the employer and the employees to the EPF account. EPF acts as retirement savings for employees, hence it is counted as a part of the current salary.

This is the final salary that comes after a company proposes some hike on the current salary. This salary includes the hike percentage based on the current salary.

Understand the difference between revenue vs turnover for business firms.

The first step is to determine the present salary of the individual. This could be a monthly, quarterly, or annual figure and includes additional components such as bonuses, perks, or commissions.

The next step is to determine the new salary after the increment given by the employer. The hike can be a result of promotion, salary increase, or other additions such as bonuses or commissions.

After inputs on the current salary and the new salary after the increment, the next step is to calculate the difference between the current and new salary.

The final step in the salary hike calculator formula is to divide the difference between the current and new salary with the current salary and multiply the obtained figure by 100.

The salary hike calculator streamlines the process with automation by taking the required inputs and implanting the formula. This reduces any probability of human error and ensures precision in calculating the proposed amount the salary hike percentage. Instead of searching for the formula and calculating manually, users have the option to use the salary hike calculator to get accurate results.

With complete clarity on salary hike calculation, the hike calculator encourages complete clarity on the figures, thereby helping with the negotiation process. The users can easily analyze the change in salary before and after the hike, and what are the factors contributing to the shift in the salary.

Several salary hike calculators have the feature of assessing different offers and negotiation strategies. The users can input different probabilities and get comparative insights into the different figures and the impact of such changes on their income stream.

With precise calculation and comparative insights, the salary hike calculator enables users to plan their finances and align the salary adjustments with their expenses and tax deductions. This could also help with other aspects such as budgeting the income, making clear saving goals, and making a plan to achieve financial stability.

The salary hike calculator facilitates users to have clarity on their finances and work on making goals as per salary adjustments. Alongside this, the clarity of the figures empowers the users to review their performance, compare the market standards, analyze the inflation trends, and then make a foolproof strategy for the negotiation process. The salary hike calculator can boost the confidence of the employees with this information and present the facts accurately to employers or recruiters.