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Salary Calculator

Use this easy Salary calculator to estimate your gross and net salary based on your inputs.

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Salary Calculator — Find Your Gross Salary, Net Take-Home, and Understand Every Component of Your Pay

Your salary slip has many line items — Basic, HRA, Special Allowance, Transport, PF deduction, Professional Tax, TDS — but most employees know only the final number credited to their account. This Salary Calculator demystifies the full picture. Enter your basic salary, HRA, allowances, and total deductions, and instantly see your gross salary (what your employer pays) and your net salary (what actually reaches your bank account). It's the clearest way to understand your compensation and plan your finances.

Whether you're evaluating a job offer, comparing two compensation packages, or checking whether your employer's PF deduction is correct, the numbers here give you the clarity you need — instantly.

The Formulas

  • Gross Salary = Basic Salary + HRA + All Allowances
  • Net Salary (Take-Home) = Gross Salary − All Deductions

Example: Basic ₹35,000 + HRA ₹14,000 + Allowances ₹8,000 = Gross ₹57,000. Deductions: PF ₹4,200 + Professional Tax ₹200 + TDS ₹1,500 = ₹5,900. Net salary = ₹51,100/month. Annual net = ₹6,13,200.

Understanding Each Salary Component

  • Basic Salary: The fixed core component, typically 40–50% of CTC. PF, gratuity, and HRA exemption calculations are all based on basic. A higher basic means higher statutory benefits but also higher PF deductions.
  • HRA (House Rent Allowance): Usually 40–50% of basic. If you pay rent, part of HRA is exempt from income tax under Section 10(13A) — making it one of the most valuable salary components for salaried employees in rented accommodation.
  • Special Allowance: Fully taxable but flexible — employers use it to fill the gap between basic+HRA and the offered CTC. No statutory exemption applies.
  • Transport/Conveyance Allowance: Fully taxable since FY 2018-19 (merged into standard deduction).
  • Medical Allowance: Fully taxable unless reimbursed against bills; the old ₹15,000 exemption was removed and replaced with the standard deduction.
  • Leave Travel Allowance (LTA): Exempt for actual travel costs within India (economy class airfare or AC rail fare) for self and family — twice in a block of 4 calendar years.
  • Performance Bonus / Variable Pay: Typically paid quarterly or annually; fully taxable. Often not included in monthly net salary calculations until credited.

Key Deductions That Reduce Your Take-Home

  • Employee PF (EPF): 12% of basic salary (subject to a minimum of ₹1,800/month for those earning basic ≤ ₹15,000). Your employer also contributes 12% — 8.33% goes to EPS (pension), 3.67% to EPF. Both contributions are exempt from tax.
  • Professional Tax: Levied by state governments — varies by state (Maharashtra: up to ₹2,500/year; Karnataka: up to ₹2,400/year; Tamil Nadu: ₹1,440/year). Deductible under income tax.
  • TDS (Income Tax at Source): Your employer deducts tax monthly based on your estimated annual tax liability under your chosen regime. For zero TDS, declare regime and investments via Form 12BB at the start of the year.
  • ESI (Employee State Insurance): 0.75% of gross salary for employees earning up to ₹21,000/month gross. Provides health and maternity benefits. Employer contributes 3.25%.
  • Voluntary Deductions: NPS (National Pension System) contributions (additional 80CCD(1B) benefit of ₹50,000/year), group insurance premiums, company loan EMIs — these are company-specific and reduce take-home but may provide tax or benefit value.

CTC vs Gross vs Net — The Three Numbers Every Employee Must Know

These three figures represent very different amounts for the same employee:

  • CTC (Cost to Company): Everything the employer spends: gross salary + employer PF (12% of basic) + employer ESI (3.25%) + gratuity provision (4.81% of basic) + group insurance + any other benefits. CTC is what recruiters quote; it's always higher than what you receive.
  • Gross Salary: Your monthly earnings before deductions — the sum of all allowances and basic. Roughly CTC minus employer-side contributions.
  • Net Salary (Take-Home): Gross minus all employee-side deductions (PF, PT, TDS, ESI, loan). This is what gets credited to your account.

For a ₹10 lakh CTC: employer PF ≈ ₹57,600, employer ESI (if applicable) ≈ ₹0 (usually above threshold), gratuity provision ≈ ₹28,846. Annual gross salary ≈ ₹9,13,554. After employee PF (₹57,600), PT (₹2,400), and TDS (varies by regime), annual take-home could be ₹7.8–8.2 lakh depending on deductions and tax regime chosen.

Frequently Asked Questions About Salary

The employer contributes 12% of basic salary to PF/EPS — this comes from the employer's budget (part of CTC), not from your gross salary. It does not directly reduce your take-home. Your own contribution (also 12% of basic) is deducted from your gross salary, reducing take-home. If your basic exceeds ₹15,000/month, both you and your employer can cap PF contributions at ₹1,800/month (on ₹15,000 basic ceiling) — though many employers contribute on actual basic without capping.
Form 12BB is an investment declaration form submitted to your employer at the start of each financial year. You declare planned tax-saving investments (80C, 80D, HRA rent, home loan interest, LTA) so your employer can calculate your estimated annual tax liability and deduct the correct TDS monthly. If you don't submit 12BB, your employer deducts TDS at maximum rates (no deductions assumed). Accurate 12BB submission maximises your monthly take-home by ensuring TDS is only deducted on actual taxable income.
Yes, employers typically include a gratuity provision in CTC — calculated as 4.81% of basic salary annually. However, you only receive gratuity after completing 5 years of continuous service with the same employer (Payment of Gratuity Act, 1972). Formula: Gratuity = Last drawn basic salary × 15 × number of completed years of service ÷ 26. Tax exemption: up to ₹20 lakh is tax-free for non-government employees. Gratuity in CTC is a future benefit, not current take-home — don't confuse it with your monthly earnings.
Restructuring shifts income from fully-taxable components to partially or fully exempt ones — without changing total CTC. Key restructuring options: (1) Increase HRA (if renting) for Section 10(13A) exemption. (2) Add LTA component (tax-free twice in 4 years for actual travel). (3) Introduce meal coupons/food allowance (up to ₹50/meal, 2 meals/day, 22 days = ₹26,400/year tax-free). (4) Introduce NPS employer contribution under 80CCD(2) — up to 10% of salary, tax-free even in new regime. These changes require employer HR participation but can save ₹20,000–₹60,000 in annual tax without any actual investment.
Your EPF account is portable via the Universal Account Number (UAN). When you change jobs, provide your UAN to the new employer — the new company contributes to the same account. PF withdrawal before 5 years of continuous service attracts tax on the withdrawn amount (as salary income). After 5 years, withdrawal is tax-free. If you leave a job and don't transfer, the account becomes inoperative after 36 months with no new contributions — interest still accrues but you lose active employee benefits. Always transfer rather than withdraw to preserve the compounding benefit.
Log in to the EPFO Member portal (epfindia.gov.in) using your UAN and Aadhaar-linked mobile OTP. Check your passbook — it shows monthly contributions by both you and your employer. If employer contributions are missing or delayed, first raise it with HR. If unresolved, you can file a grievance at the EPFO grievance portal or approach the regional PF commissioner. Non-deposit of PF contributions is an offence under the EPF Act — the employer is liable for the arrears plus 12% interest plus penalties.
The answer depends on your total deductions. The new regime is beneficial if you have minimal deductions (no home loan, no 80C, low rent). For someone earning ₹12 lakh with no deductions, the new regime is effectively zero-tax up to ₹12.75 lakh gross (after ₹75,000 standard deduction and 87A rebate). The old regime is better if your total deductions (80C + 80D + HRA + home loan interest + NPS) exceed approximately ₹3.75 lakh for a ₹15 lakh income. Use our Income Tax Calculator to model both regimes with your exact numbers.