Salary Calculator

How This Tool Works

Operation: The In-Hand Salary Calculator computes your take-home pay by deducting statutory contributions and tax from your Cost to Company (CTC). The calculation follows the standard Indian payroll structure:

• Basic Pay: Typically 40–50% of CTC. This forms the basis for most other calculations.
• House Rent Allowance (HRA): Usually 40–50% of Basic Pay depending on city classification (metro vs. non-metro).
• Employee Provident Fund (EPF): 12% of Basic Pay contributed by the employee, matched by the employer (8.33% goes to EPS, the rest to EPF).
• Professional Tax: State-dependent, typically ₹200–₹300 per month.
• Income Tax: Calculated using the applicable tax regime (Old or New). The tool supports both regimes and applies the appropriate slab rates, Section 80C deductions (Old regime), and the standard deduction of ₹50,000.
• In-Hand Salary = Gross Salary − EPF − Professional Tax − Income Tax

The tool displays a detailed breakdown: gross salary, total deductions, net monthly in-hand amount, annual net salary, and a pie chart showing the proportion of salary vs. deductions.

Key Benefits of Using the Salary Calculator

• 100% confidential payroll processing: Your CTC, salary structure, and tax details are computed entirely in your browser. No salary data is ever uploaded, stored, or accessible to any third party — essential for personally identifiable financial information.
• Dual tax regime comparison: View your in-hand salary under both the Old tax regime (with deductions) and the New tax regime (lower rates, no deductions). The side-by-side comparison helps you decide which regime optimises your take-home pay.
• Complete deduction breakdown: See exactly where every rupee goes — EPF, professional tax, income tax, and other deductions — presented in a clear, itemised format with visual charts.

Practical Real-World Use Cases

• Job seekers comparing offers: A professional with two job offers — one at ₹18 LPA with lower basic pay and another at ₹16 LPA with allowances — can compute the actual in-hand salary of each to make an informed decision beyond just the headline CTC number.
• Employees planning tax-saving investments: A salaried employee can adjust Section 80C deduction amounts to see how ₹1.5 lakh in tax-saving investments (PPF, ELSS, life insurance) impacts monthly take-home pay under the Old regime.
• HR professionals verifying payroll: An HR executive can independently verify in-hand salary calculations for a sample employee to audit payroll processing accuracy without using company-wide payroll software.

Frequently Asked Questions (FAQ)

Does the New tax regime always result in higher in-hand salary?

Not necessarily. The New regime offers lower tax rates but eliminates most deductions (80C, HRA exemption, LTA). For employees with significant deductions (home loan interest, ₹1.5L 80C investments), the Old regime may yield higher take-home pay.

Why is my in-hand salary less than (CTC / 12)?

Because your CTC includes employer-side contributions (EPF, gratuity, insurance) that are not paid to you as cash. Additionally, your own EPF contribution, professional tax, and income tax are deducted before you receive your salary.

Is the standard deduction applicable under both regimes?

Yes. The standard deduction of ₹50,000 is available under both the Old and New tax regimes as of the current financial year. The calculator applies it automatically in both calculations.