Is your 2026 raise a real gainor an inflation loss?
With India Inc. projecting a 9.1% average hike and Q4 inflation hitting 3.2%, see if your purchasing power is actually growing.
Avg 2026 Hike
9.1%
Q4 Inflation
3.2%
Tax-Free Limit
₹12.75L
Smart Calculator
Compare hike vs inflation & New Tax Act 2025 (effective April 1)
Compare against sectoral benchmarks (EY Future of Pay 2026)
Your 2026 Raise at a Glance
Nominal Hike
₹1,09,200 (9.1%)
Total rupee increase · New CTC: ₹13,09,200
Real Hike (Inflation Adjusted)
+5.9%
9.1% − 3.2% inflation = Real purchasing power
New Tax Act Bonus
₹15,000/yr
Tax saved from ₹75K standard deduction on new income
Real Growth
+5.9%
Inflation-adjusted purchasing power
Nominal Hike vs Purchasing Power
9.1%
Nominal Hike
5.9%
Purchasing Power
Standing still with the market. Your real hike is between 4.1% and 9.1%. You are keeping pace with inflation but not outperforming the India average.
2026 Sector Benchmarks (EY Future of Pay)
India Average
9.1%
GCCs
10.4%
NBFCs
10.1%
IT / Tech
9%
Manufacturing
8.8%
Retail / FMCG
8.5%
Other
9%
The 9.1% Benchmark
According to the EY Future of Pay 2026 report, India Inc. is projecting a 9.1% average salary hike for 2026. GCCs (Global Capability Centers) lead at 10.4%, followed by NBFCs at 10.1%. IT services and other sectors cluster around the India average. Use the industry dropdown in the calculator to compare your hike against sectoral benchmarks.
The "Real Growth" Warning
If your real hike (nominal hike minus 3.2% inflation) is below 3.2%, your raise isn't beating inflation—a "Silent Recession" where salary goes up in rupees but purchasing power falls.
< 3.2%: Not beating inflation. Losing purchasing power.
4.1% – 9%: Standing still with the market.
> 9.1%: Outperforming the 2026 India average.
Put Your Raise to Work
Frequently Asked Questions
What is a good salary hike in India for 2026?
Above 9.1% is considered good. GCCs (10.4%) and NBFCs (10.1%) are leading the market. A hike above 9.1% means you are outperforming the India average.
How does the New Income Tax Act 2025 affect my raise?
The higher standard deduction of ₹75,000 and the ₹12.75L tax-free threshold increase your net in-hand salary, boosting the real value of your hike.
How to negotiate a hike using inflation data?
Use our calculator to get your real hike (nominal minus 3.2% inflation). If it is below 4%, frame your ask: "The 9.1% India average barely covers inflation. I need at least X% for real purchasing power growth."