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Salary Calculator

Calculate in-hand salary from CTC with detailed breakup

Salary Details

₹1L₹5Cr
30%60%
Metro City (for HRA)

Salary Breakup

₹73.91 KMonthly In-Hand

Monthly In-Hand

₹73.91 K

Annual In-Hand

₹8.87 L

In-Hand
Tax
EPF
P.Tax
Total Tax

₹48.23 K

5.0% effective rate

Annual EPF

₹21.60 K

Employee contribution

Earnings (Monthly)

Basic Salary₹33.33 K
HRA₹16.67 K
Special Allowance₹29.93 K
Gross Salary₹79.93 K

Deductions (Monthly)

Employee EPF-₹1.80 K
Income Tax (TDS)-₹4.02 K
Professional Tax-₹200
Total Deductions-₹6.02 K

Tax Calculation (New Regime)

Gross Annual Salary₹9.59 L
Standard Deduction-₹50.00 K
Taxable Income₹9.09 L

Tax Breakdown:

₹3,00,000 - ₹6,00,000 @ 5%₹15.00 K
₹6,00,000 - ₹9,00,000 @ 10%₹30.00 K
₹9,00,000 - ₹12,00,000 @ 15%₹1.37 K
Income Tax₹46.37 K
Cess (4%)₹1.85 K
Total Tax₹48.23 K

What is Salary Calculator, and How Does it Help You

When receiving a job offer, the package is usually discussed in terms of Cost to Company (CTC). However, CTC is not what you receive in your bank account. CTC includes employer contributions like EPF, gratuity, and insurance. The in-hand (take-home) salary is the gross salary minus mandatory deductions like employee EPF, professional tax, and income tax.

The Salary Calculator estimates your monthly take-home salary from your gross CTC. It calculates standard deductions to show your net monthly income.

CTC to Take-Home conversion

Uncover the real take-home salary by factoring in all employer and employee deductions.

EPF Deduction Calculations

Calculate employee EPF deductions based on statutory guidelines (12% of basic salary).

Tax Deductions Breakdown

Estimates monthly income tax and professional tax deductions under the chosen tax regime.

How Does the Salary Calculator Work?

The calculator deducts employer benefits from the CTC to find the gross salary, then subtracts employee deductions and income tax to estimate the in-hand salary.

In-Hand Salary = Gross Salary - Income Tax - Employee EPF - Professional Tax

CTC: Cost to Company (total annual expenditure on the employee)
Gross Salary: CTC minus employer contributions (like employer EPF and gratuity)
Employee EPF: 12% of basic salary deducted monthly for retirement savings
Professional Tax: State-level tax on employment (usually up to ₹200/month)

If your annual CTC is ₹12,00,000, and your basic salary is set at 50% (₹6,00,000). The employer EPF is ₹72,000. Gratuity is ₹28,846. This leaves a gross salary of ₹10,99,154. After subtracting employee EPF (₹72,000), professional tax, and estimated income tax, the calculator computes your net monthly take-home salary.

How to Use Salary Calculator

Using the Salary Calculator is extremely simple and takes just a few seconds. Follow these steps:

1

Enter Annual CTC

Type in your total Cost to Company (annual CTC) offered by your employer.

2

Specify Basic Salary %

Set basic salary as a percentage of CTC (usually 40% to 50% depending on HR policy).

3

Select Tax Regime

Choose between the Old and New tax regimes to calculate the take-home pay under each option.

Advantages of Using Salary Calculator

✓ Evaluate Job Offers Better

Compare salary offers from different employers by looking at take-home pay, not just CTC.

✓ Monthly Budget Planning

Know your exact disposable income to plan monthly expenditures, EMIs, and savings.

✓ Check Payroll Deductions

Verify that your company's payroll deductions for EPF and tax match the statutory norms.

✓ Optimize Salary Structure

Understand how changing CTC structures (like allowances) alters your take-home pay.

Frequently Asked Questions

CTC (Cost to Company) is the total amount a company spends on an employee annually, including basic salary, allowances, EPF, gratuity, insurance, and other benefits. In-hand salary (take-home pay) is what you actually receive after deducting EPF, taxes, and other deductions. Typically, in-hand salary is 65-75% of CTC depending on tax bracket and benefits structure.
Main salary components are: 1) Basic Salary (40-50% of CTC) - base pay affecting EPF and gratuity, 2) HRA (40-50% of basic) - for rent expenses, 3) Special/Flexible Allowance - remaining amount, 4) EPF - employer and employee contribution, 5) Gratuity - 4.81% of basic, 6) Other benefits - insurance, LTA, food coupons, etc.
Basic salary is typically 40-50% of CTC, decided by the employer. Lower basic means higher in-hand (less EPF/tax) but lower retirement benefits. Higher basic increases EPF corpus and gratuity but reduces take-home. Most companies set basic at 40% for tax efficiency. You can negotiate basic percentage during offer stage.
HRA (House Rent Allowance) exemption reduces taxable income for those paying rent. Exemption is minimum of: 1) Actual HRA received, 2) Rent paid - 10% of basic salary, 3) 50% of basic (metro) or 40% (non-metro). To claim, you need rent receipts and landlord PAN for rent >₹1 lakh/year. Only available in old tax regime.
Choose based on deductions: New regime is better if deductions <₹2.5L (lower tax rates, simpler). Old regime is better if you claim HRA, 80C (₹1.5L), 80D (₹25-50K), home loan interest (₹2L). Calculate tax under both to compare. Generally, new regime suits those without loans/high rent; old regime suits those with significant deductions.
Income tax is calculated as: 1) Calculate Gross Salary, 2) Subtract exemptions (HRA, LTA) and deductions (80C, 80D, etc.), 3) Apply tax slabs to taxable income, 4) Add 4% cess. New regime has slabs: 0-3L (nil), 3-6L (5%), 6-9L (10%), 9-12L (15%), 12-15L (20%), >15L (30%). Old regime: 0-2.5L (nil), 2.5-5L (5%), 5-10L (20%), >10L (30%).
Professional tax is a state-level tax on salaried individuals and professionals, deducted by employers. Maximum is ₹2,500/year (varies by state). States like Maharashtra, Karnataka charge ₹200/month; some states don't have it. It's deductible under Section 16(iii) when calculating taxable income.
EPF deduction: Employee contributes 12% of basic salary, employer matches 12% (3.67% to EPF, 8.33% to EPS). For basic >₹15,000, statutory contribution is on ₹15,000 only, but companies may contribute on full basic voluntarily. Employee contribution qualifies for 80C deduction. Current EPF interest is 8.25%.
Gratuity is a retirement benefit paid after 5 years of service. Calculation: (15 × Last drawn salary × Years of service) / 26. Maximum tax-free gratuity is ₹20 lakh. It's included in CTC (4.81% of basic) but paid only at exit after 5 years. For contract workers, rules differ. Gratuity Act applies to establishments with 10+ employees.
Optimize take-home through: 1) Negotiate lower basic (more in special allowance), 2) Claim full HRA exemption with rent receipts, 3) Opt for food coupons/meal cards (tax-free up to limits), 4) Use LTA exemption for actual travel, 5) Invest in NPS for additional ₹50K deduction, 6) Choose new tax regime if deductions are low. Always stay compliant with tax laws.
TDS (Tax Deducted at Source) is income tax deducted by employer monthly and deposited with government. Employer calculates annual tax liability and deducts equally across months. You receive Form 16 showing TDS details. If TDS exceeds actual tax (due to deductions), claim refund while filing ITR. If less, pay remaining while filing.
Bonuses and variable pay are fully taxable as salary income. They're taxed at your marginal rate (highest slab). If bonus is significant, TDS rate increases. Consider timing: if bonus pushes you to higher slab, request split payment across financial years. Variable pay varies by performance and company policy; it's not guaranteed unlike fixed pay.