1. What is CTC-Based Salary Hike?

CTC (Cost to Company) based salary hike percentage measures the increase in total compensation package from old to new CTC. It provides a comprehensive view of salary growth including all components of the compensation package.

2. How Does the Calculator Work?

The calculator uses the hike percentage formula:

Where:

• \( \text{New CTC} \) — New Cost to Company in USD
• \( \text{Old CTC} \) — Previous Cost to Company in USD

Explanation: The formula calculates the percentage increase in total compensation by comparing the difference between new and old CTC relative to the original CTC.

3. Importance of Hike Percentage Calculation

Details: Calculating hike percentage helps employees understand their salary growth, negotiate better packages, and make informed career decisions. It also helps employers benchmark compensation adjustments.

4. Using the Calculator

Tips: Enter both Old CTC and New CTC in USD. Ensure values are positive numbers. The calculator will automatically compute the hike percentage.

5. Frequently Asked Questions (FAQ)

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

Q2: How is hike percentage different from salary increase?
A: Hike percentage considers the entire CTC package, while salary increase typically refers only to the basic salary component.

Q3: What is considered a good hike percentage?
A: A good hike typically ranges from 10-30% depending on industry, experience level, and performance, though this varies by company and role.

Q4: Should I consider only CTC when evaluating a job offer?
A: While CTC is important, also consider take-home salary, work culture, growth opportunities, and other non-monetary benefits.

Q5: Can hike percentage be negative?
A: Yes, if the New CTC is lower than Old CTC, the hike percentage will be negative, indicating a salary reduction.