The formula: current salary × increment%
For a ₹8,00,000 salary with a 12% increment: ₹8,00,000 × 12% = ₹96,000 increment amount, giving a new salary of ₹8,00,000 + ₹96,000 = ₹8,96,000.
What "current salary" actually means matters
The calculation applies the same way regardless of which salary figure is entered — CTC, gross, or basic — but the result describes that same figure, incremented. Entering CTC gives a new CTC; it says nothing directly about how much extra take-home pay results, since taxes and deductions apply differently at different income levels.
Increment versus a promotion raise
A routine annual increment (commonly 8-12% in India, though it varies widely by industry and performance) is usually applied to whatever figure is being incremented as a whole. A promotion raise often works differently, sometimes restructuring the basic-to-allowances split itself rather than scaling every component by the same percentage.
What a raise on your total salary doesn't guarantee
Incrementing a total salary figure increases every component proportionally by default — but some statutory calculations, like bonus, are capped at a fixed wage ceiling regardless of actual salary. The companion article on salary increments and statutory bonus shows exactly when a raise does, and doesn't, change what else it affects.