1. What Is CTC Percentage Increase?

CTC (Cost to Company) percentage increase measures the relative growth in total compensation package between two periods. It helps employees and employers understand salary growth and compensation adjustments over time.

2. How Does The Calculator Work?

The calculator uses the percentage increase formula:

Where:

• \( New\ CTC \) — New Cost to Company amount
• \( Old\ CTC \) — Previous Cost to Company amount

Explanation: This formula calculates the relative increase as a percentage of the original amount, providing a standardized way to compare compensation changes.

3. Importance Of CTC Increase Calculation

Details: Calculating CTC percentage increase is essential for salary negotiations, performance reviews, career progression analysis, and understanding real income growth after accounting for inflation and market trends.

4. Using The Calculator

Tips: Enter both Old CTC and New CTC amounts in the same currency. Ensure values are positive numbers representing the total cost to company including all benefits and allowances.

5. Frequently Asked Questions (FAQ)

Q1: What is included in CTC?
A: CTC includes basic salary, allowances, bonuses, provident fund contributions, insurance, and other benefits provided by the employer.

Q2: How often should CTC increase be calculated?
A: Typically calculated annually during appraisals, but can be done whenever there's a compensation change like promotions or job changes.

Q3: What is a good CTC percentage increase?
A: This varies by industry and location, but generally 8-15% is considered good for annual increments, while 20-30% or more is common when changing jobs.

Q4: Does CTC increase account for inflation?
A: No, this calculation shows nominal increase. For real increase, subtract inflation rate from the percentage increase.

Q5: Can this calculator handle negative increases?
A: Yes, if New CTC is lower than Old CTC, the result will show a negative percentage indicating a decrease in compensation.