Salary Calculator
Calculate your take-home salary after all deductions like PF, professional tax, and insurance.
Monthly Deductions
Salary Breakdown
Total Monthly Deductions
₹2,250
Total Annual Deductions
₹27,000
Net take home monthly
₹40,250
Net take home annual
₹4,83,000
Detailed Breakdown
Understanding Salary Components
What are Salary Components in India?
The employer makes regular payments to the employee for the work done. Such regular payment is termed as the salary. The employment contract specifies the wages, usually made each month.
Basic Salary
The employee's basic income is around 40%-50% of the total salary. The employer pays the employee for his skill, experience, and qualifications. The basic salary is a fixed component of the CTC (Cost To Company) package.
HRA
House Rent Allowance is partially or fully exempt from taxes under Section 10(13A) of the Income Tax Act. However, HRA is fully taxable if you don't live in rented accommodation.
LTA
Leave Travel Allowance can be claimed under Section 10(5) of the Income Tax Act. Employees must submit proof of travel to claim the exemption.
EPF
Both employer and employee contribute 12% of basic salary to EPF. The employee's contribution qualifies for deduction under Section 80C.
How Does Salary Calculator Work?
To calculate take-home salary, we deduct bonus from CTC to get gross salary, then subtract professional tax, EPF contributions, and insurance. The result is your net take-home pay.
Example Calculation
| Particulars | Amount (₹) |
|---|---|
| Gross Salary (CTC) | 8,00,000 |
| Less: Bonus | 50,000 |
| Professional Tax | 2,400 |
| EPF (Employee) | 21,600 |
| Employee Insurance | 3,000 |
| Net Take Home Salary | 7,01,400 |
Benefits of using the Salary Calculator
- Accurate Budgeting: Estimate your take-home pay for effective financial planning.
- Decision-Making: Compare job offers or appraisals based on net salary.
- Negotiation Leverage: Understand your compensation structure for better salary discussions.
Frequently Asked Questions
What is the Difference between CTC & Take Home Salary?
CTC (Cost to Company) is your total compensation package including all benefits. Take-home salary is what you receive after all deductions like taxes, PF, etc.
How much is Basic Salary of Cost to Company (CTC)?
Typically 40-50% of CTC. It forms the basis for calculating other components like HRA and PF contributions.
What is Gratuity? What is the Eligibility Criteria for Gratuity?
Gratuity is a lump sum payment by employer as gratitude for services. Eligibility requires 5+ years of continuous service with same employer.
Disclaimer:
This salary calculator provides illustrative projections based on standard deductions. Actual take-home salary may vary based on company policies, additional deductions, and tax exemptions you may be eligible for. Please consult with your HR or a tax professional for exact calculations.