1. What is a 3% Salary Increase?

A 3% salary increase is a common annual raise percentage in many Indian companies. It represents an increment where the new salary becomes 103% of the previous salary, accounting for inflation and performance adjustments.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Old Salary — Current salary before increase (in INR)
• 1.03 — Represents 100% of current salary plus 3% increase

Explanation: The calculation adds 3% of the old salary to itself to determine the new salary amount.

3. Importance of Salary Increase Calculation

Details: Calculating salary increases helps employees understand their new compensation, plan finances, and negotiate better during appraisal discussions.

4. Using the Calculator

Tips: Enter your current salary in Indian Rupees (INR). The calculator will show your new salary after a standard 3% increment.

5. Frequently Asked Questions (FAQ)

Q1: Is 3% a standard salary increase in India?
A: While it varies by company and industry, 3-5% is a common annual increase for inflation adjustment in many Indian organizations.

Q2: How is the 3% calculated on salary?
A: Multiply your current salary by 0.03 to find the increase amount, then add it to your current salary.

Q3: Is the 3% increase calculated on basic salary or gross salary?
A: Typically, increases are calculated on the gross salary (basic + allowances), but company policies may vary.

Q4: Are salary increases taxable in India?
A: Yes, the increased amount becomes part of your taxable income under the head "Income from Salary."

Q5: When do most Indian companies give salary increases?
A: Most companies provide annual increments between April-June, coinciding with the financial year appraisal cycle.