Step-up SIP after a promotion: how much to raise

Raise the SIP from the raise, not from hope

CTC jumps look larger than in-hand after PF, tax and benefits. Decide the new SIP using take-home and a written budget. A practical pattern is to route a fixed slice of the monthly increment—often around a third to half of the extra in-hand—into SIP or debt goals before lifestyle expands to fill the gap.

If you already use an annual step-up percentage, a promotion year can justify a one-time base reset plus a calmer ongoing percentage.

Model the path before you click confirm on the app

Put today's SIP, a realistic annual step-up (5–10% is common), and your goal year into the step-up SIP calculator. Then try a higher base instalment with a smaller step-up. Many people find a higher base after the hike, with a modest step-up thereafter, easier to keep than a dramatic percentage on a small base.

Keep EMI and emergency-fund top-ups in the same worksheet so the new SIP does not crowd out buffers.

Leave room for a flat year

Promotions are uneven. If the next year is only an inflation adjustment, a 15–20% contractual step-up becomes the first thing you pause. Prefer a step-up you would still pay after rent and a dull appraisal. You can always add a manual top-up when a bonus arrives.