Appraisal Hike Reality Check
Is your 10% hike actually a raise or just keeping up with inflation? Reality check your appraisal and compare with industry standards.
Market Standard
:)
Inflation Match
+4.5%
Real Hike (After Inflation)
Your hike barely keeps up with inflation. You're maintaining your purchasing power, not gaining.
Real Hike Gauge
+4.5%
Pay Cut
(-5%) Inflation
(0%) Real Raise
(+5%) Excellent
(+15%)
(-5%) Inflation
(0%) Real Raise
(+5%) Excellent
(+15%)
New Annual CTC
Rs.11,00,000
Actual Increase
Rs.1,00,000
Purchasing Power Change
+Rs.45,000
vs Industry Average
-0.5% vs industry
Experience-Adjusted Expectation
11.5%
Typical Jump (If Switch)
~30%
Your Hike vs Benchmarks
5-Year Salary Projection
Stay vs Switch Analysis
If You Stay
Rs.11,00,000
+10% hike
If You Switch
Rs.13,00,000
~30% typical jump
+Rs.2L more
Your hike is okay but exploring market won't hurt. Update that resume!
Industry Benchmark
IT / Software
Average Hike: 10.5%
Your hike is at par with industry average.
How to Use the Appraisal Hike Reality Calculator
- Enter Your Current Salary: Input your current annual CTC (Cost to Company). This is your total salary including all components before the hike.
- Enter Your Hike Percentage: Use the slider or type in the hike percentage offered in your appraisal (e.g., 10%, 15%, etc.).
- Check Inflation Rate: We auto-fill current CPI inflation (~5.5%). Uncheck to enter a custom rate if you want to use a different inflation figure.
- Add Experience Details: Enter years at current company to get experience-adjusted expectations for your hike.
- Select Your Industry: Choose your industry to compare your hike with sector-specific averages.
- Analyze Results: See your real hike (inflation-adjusted), compare with industry benchmarks, and evaluate stay vs switch potential.
Why Check Your Appraisal Reality?
Every appraisal season (March-April in India), millions of employees receive their annual hike letters. But a "10% hike" isn't always what it seems. Here's why this calculator matters:
The Inflation Truth
What sounds good: "I got a 10% hike!"
What it might mean: With 5.5% inflation, your "real" raise is only 4.5%. You can only buy 4.5% more stuff than before - not 10%.
Worse scenario: A 5% hike with 6% inflation means you're actually 1% poorer despite getting a "raise".
Industry Matters
Different industries have vastly different average hikes:
- Consulting: 12% average (highest)
- E-Commerce/Startups: 11% average
- IT/Software: 10.5% average
- Finance/Banking: 9.5% average
- Manufacturing: 8% average
- Government/PSU: 4% average (lowest, but with job security)
A 10% hike in IT is average, but the same 10% in government sector is exceptional!
The Switch Premium
Here's the uncomfortable truth: Internal hikes rarely match job-switch hikes.
- Average internal hike: 8-12%
- Average switch hike: 25-40%
This is why employees who switch every 2-3 years often have significantly higher salaries than those who stay loyal to one company.
Experience-Adjusted Expectations
Your expected hike varies with experience:
- 1-2 years: Expect 10-15% higher than average (steep learning curve)
- 3-5 years: At industry average
- 6-10 years: Slightly below average % (but higher absolute amount)
- 10+ years: Lower % hikes (senior positions have lower percentage growth)
Frequently Asked Questions
What is a good salary hike percentage in India?
A "good" hike depends on context. Generally, 10-15% is considered good for internal hikes in most industries. However, what matters more is your "real hike" - your hike percentage minus inflation. If your real hike is above 5%, you're doing well. Industry averages vary from 4% (government) to 12% (consulting).
Why does inflation reduce my effective salary hike?
Inflation erodes purchasing power. If prices rise by 6% but your salary only rises by 8%, you can only afford 2% more goods and services - not 8% more. Your "nominal" hike (the number on your letter) isn't the same as your "real" hike (actual increase in buying power).
Should I switch jobs if my hike is below industry average?
Not necessarily. Consider: (1) Your total compensation including bonuses, ESOPs, perks; (2) Work-life balance and job security; (3) Growth opportunities and learning; (4) Team and manager quality. Switching purely for salary can backfire if other factors suffer. Use this calculator to make an informed decision, not an impulsive one.
How much hike can I expect when switching jobs?
Job switches typically bring 25-40% hikes depending on industry, role demand, and your negotiation skills. IT professionals average 30-35%, while consulting/FMCG can see 40%+ jumps. However, this comes with risks - new company culture, probation periods, and loss of accumulated benefits like gratuity and vested ESOPs.
Is a 10% hike good in 2025?
With current inflation around 5.5%, a 10% hike gives you a real raise of about 4.5%. This is decent but not exceptional. For IT and consulting (average ~10-12%), it's at par. For sectors like education or government with lower averages (6-8%), 10% would be above average. Context matters!
When is the best time to negotiate salary or switch jobs?
In India, peak hiring and appraisal season is March-April. Q4 (Jan-March) is ideal for job hunting as companies have fresh budgets. Avoid switching right before your appraisal or bonus payout. Also consider notice period - if you have a 3-month notice, start exploring 4-5 months before you want to join.
How do I negotiate a better hike?
Tips: (1) Know your market value using salary surveys; (2) Document your achievements with metrics; (3) Time it right - after a successful project or before appraisal cycle; (4) Be specific about the number you want; (5) Have a BATNA (Best Alternative) - it's easier to negotiate when you have options; (6) Focus on value you bring, not personal needs.