Salary Calculator

Components of Your Salary Slip

In every professional field, employees get paid at the end of the month by their employers. This payment is called the salary. The amount they receive is usually mentioned in their contract as well as the pay slip.

The salary has many components that may vary among different employers. Below is a list of the most common breakdown of the salary structure.

1.  Basic salary

It is a part of the Cost to Company (CTC) that the employers pay to the employees for their services. The basic salary is generally around 40% to 50% of your total salary. There is no formula to calculate this amount. It depends on factors like the industry, employee designation, and much more.

2.  House Rent Allowance (HRA)

Companies pay the HRA to employees who stay in a rented property. The HRA amount equals 50% of the basic salary if you live in metro cities. For the non-metro cities, the amount is 40% of your basic salary.

Section 10(13A) of the Income Tax Act, 1961 makes the HRA partially or fully tax exemptible. But, if you do not stay in a rented property, the entire component is taxable.


3.  Leave Travel Allowance (LTA)

Employers pay this benefit for you and your family’s domestic travel expenses during a holiday. The allowance only covers railway ticket prices and airfares. Section 10(5) of the Income Tax Act, 1961 offers tax exemption on the LTA amount for up to two holidays in a four-calendar-year block. You need to submit proof of travel to receive the tax benefit.

4.  Special Allowance

This is a fixed amount your employer may pay above your basic salary. The Special Allowance varies among companies as it depends on multiple factors. Moreover, it is fully taxable.

5.  Bonus

Bonus is a component of the gross salary that the employers may pay as a performance encouragement. The entire bonus amount is fully taxable.

6.  Employee Provident Fund (EPF)

It is generally a mandatory savings scheme. You need to pay 12% of your basic salary as an EPF contribution. Moreover, your employer matches your contribution and invests the same amount in your EPF account. Your contribution is tax-deductible up to ₹1.5 lakhs under Section 80C of the Income Tax Act, 1961.

The employer’s contribution to EPF is a part of the CTC, and it does not appear on the salary slip.


7.  Professional tax

It is a mandatory tax you need to pay to the state government. However, the professional tax amount cannot be more than ₹2,500 in a financial year.

If the breakdown seems complicated, you are not alone. Calculating the salary can be tricky because it entails several aspects. To save time and effort, most people use the salary calculator in India. The tool can make the process easy for you; read on to know more.

8. Tax-free Allowance

Tax-free allowances like travel allowance, daily allowance, uniform allowance, academic allowance, admin help allowance are exempt because these expenses are incurred while performing duties and has to be borne by the employers.

What Is Salary Calculator?

A take home salary/ in-hand calculator is an automated tool that helps you figure out your net salary after taxation. It also considers all the bonuses and deductions applicable. You must provide the gross salary and total bonus.

The calculator will then determine the CTC and show you the amounts of basic salary, HRA, other allowances, deductions for provident fund and professional tax, total deduction, net salary, income tax, and net salary after income tax deduction.

Salary Calculation Formula

As the salary calculations involve various components, you need to use different formulas to calculate each aspect. Only then you can estimate your take-home salary. Here are some important salary calculation formulas that you must know.

  • Gross salary: CTC - EPF - Gratuity
  • Gratuity: (Basic salary + Dearness allowance) × 15/26 × Number of years you have worked for the company
  • Taxable income: Gross Salary - EPF/PPF Contribution – Tax-free Allowance - HRA – LTA – Health Insurance – Tax-saving Investments - Other Deductions
  • Net Salary Post Taxation/Take-home Salary: Gross Salary - Income Tax - EPF Contribution - Professional Tax

How to use Salary Calculator?

The process to use the salary calculator is quick and simple. Follow the three steps given below:

  1. Choose if you want to calculate monthly or yearly salary.
  2. Enter the gross salary and total bonus amount to determine Cost to Company (CTC).
  3. Input the basic salary percentage of the CTC.

The calculator may consider the basic salary as 50% of the CTC by default. You may change it as per your need.

Once you enter the required details, the calculator will instantly provide the following information.

  • Basic Salary
  • HRA
  • Other Allowances
  • Provident Fund
  • Professional Tax
  • Total Deductions
  • Net Salary
  • Income Tax
  • Net Salary Post Tax

Jupiter's Salary Calculator tool can also help you calculate salary per month. Just toggle the 'Yearly/Monthly' option to 'Monthly'.

How to Calculate Monthly Take-Home Salary?

Your monthly take-home salary is the amount that remains after subtracting the total deductions from gross pay. Let us understand the calculations using examples. Suppose your yearly CTC is ₹10 lakhs, and the company pays you ₹50,000 per year as a bonus. So, your total gross salary will be CTC – bonus = ₹10 lakhs - ₹50,000 = ₹9.50 lakhs.

Thereafter, you need to deduct the yearly professional tax from the gross salary. The tax amount varies from state to state. For this example, we will assume it is ₹2,500 in your location.

Next, you must deduct the total EPF contributions by you and your company. The employer always matches the EPF contribution of the employee. So, the amount will be the same. Your EPF investment will be 12% of the maximum monthly salary limit of ₹15,000 = ₹1,800 a month. So, your annual contribution to EPF will be ₹21,600. Your employer’s contribution will be ₹21,600, too.

Let us assume you also have a deduction of ₹3,000 per year towards employee insurance.

So, your total deduction = professional tax + your contribution to EPF + the company’s contribution to EPF + employee insurance = ₹2,500 + ₹21,600 + ₹21,600 + ₹3,000 = ₹48,700.

Your total yearly take-home salary = gross salary – total deductions = ₹9.50 lakhs - ₹48,700 = ₹9,01,300.

Now, your monthly take-home salary = annual salary/12 = ₹9,01,300/12 = ₹75,108.

To do away with the tedious calculations, most people prefer the take-home salary calculator in India. If you use the tool, it will determine the amounts from the above calculations and show you the numbers within seconds.

How to Calculate Take Home Salary After Taxes?

Everyone is curious what their take home pay will be once an organization decides the appraisal for the employee or share the new offer letter to a candidate. Let's breakdown how to calculate take home pay after the taxation.

Firstly you have to find out your taxable income. All the variables are explained above as well. For taxable income you need to have the following values:

  • Gross Salary
  • EPF/ PPF Contribution
  • Tax-free Allowance (if any)
  • HRA
  • LTA
  • Health Insurance (if any)
  • Tax Saving investments (if any)
  • Deductions

Taxable income= Gross Salary - EPF/PPF Contribution – Tax-free Allowance - HRA – LTA – Health Insurance – Tax-saving Investments - Other Deductions

Your Take-home Salary = Gross Salary - Income Tax - EPF Contribution - Professional Tax - Other Deductions

You can always cross-check the take home salary with your HR or finance manager in the organization and ask them to explain the details about the deductions and allowances.

How to Calculate Gratuity?

Let see how to calculate Gratuity?

  • For companies not covered under the Payment of Gratuity Act 1972 -

Gratuity Amount = (15/30)  x  (Last drawn salary amount) x [ period of service(in years) ]

  • For companies covered under the Payment of Gratuity Act 1972 -

Gratuity Amount = (15/26)  x  (Last drawn salary amount) x [ period of service(in years) ]

Last drawn salary amount will also include Dearness Allowance (if any).

Some commonly searched salaries

Please note that this is just for informational purposes only.

Annual Salary (LPA - lakh per annum)Monthly Salary RangeYearly Salary Range
1 LPA in hand salary7,600 to 8,30091,600 to 1,00,000
1.5 LPA in hand salary11,500 to 12,5001,38,600 to 1,50,000
2 LPA in hand salary15,500 to 16,6001,85,600 to 1,97,600
2.3 LPA in hand salary17,817 to 19,1002,13,000 to 2,27,600
3 LPA in hand salary23,300 to 25,0002,79,600 to 2,97,600
3.8 LPA in hand salary29,500 to 31,4003,54,800 to 3,77,600
3.9 LPA in hand salary30,350 to 32,3003,64,200 to 3,87,600
4 LPA in hand salary31,100 to 33,1333,73,600 to 3,97,600
5 LPA in hand salary38,900 to 41,4004,67,600 to 4,97,600
5.5 LPA in hand salary42,800 to 45,6005,14,600 to 5,47,600
6 LPA in hand salary45,500 to 49,8005,61,600 to 5,97,600
7 LPA in hand salary51,000 to 54,6006,12,000 to 6,55,200
8 LPA in hand salary57,200 to 62,4006,87,400 to 7,49,600
8.5 LPA in hand salary60,400 to 66,3847,24,800 to 7,96,600
9 LPA in hand salary63,600 to 70,3007,63,200 to 8,43,600
9.2 LPA in hand salary64,900 to 71,8007,74,800 to 8,62,400
9.5 LPA in hand salary66,800 to 73,700 8,00,000 to 8,84,900
9.6 LPA in hand salary67,400 to 74,4008,08,000 to 8,93,000
9.8 LPA in hand salary68,700 to 75,7008,24,400 to 9,09,000
10 LPA in hand salary70,000 to 77,0008,40,000 to 9,25,000
11 LPA in hand salary76,300 to 76,3009,15,600 to 10,05,000
11.5 LPA in hand salary79,300 to 87,1009,51,600 to 10,45,300
12 LPA in hand salary82,000 to 90,4009,84,000 to 10,85,400
13 LPA in hand salary87,600 to 97,10010,51,200 to 11,65,800
13.5 LPA in hand salary90,300 to 1,00,40010,83,600 to 12,05,700
14 LPA in hand salary93,100 to 1,03,80011,17,200 to 12,45,800
15 LPA in hand salary98,600 to 1,10,50011,83,200 to 13,26,000
16 LPA in hand salary1,04,100 to 1,17,10012,49,200 to 14,06,200
16.5 LPA in hand salary1,06,900 to 1,20,50012,82,800 to 14,46,800
17 LPA in hand salary1,09,700 to 1,23,70013,16,400 to 14,84,400
17.5 LPA in hand salary1,12,400 to 1,26,70013,48,800 to 15,21,000
18 LPA in hand salary1,15,200 to 1,29,80013,82,400 to 15,57,700
19 LPA in hand salary1,20,700 to 1,35,90014,48,400 to 16,31,000
20 LPA in hand salary1,26,200 to 1,42,00015,14,400 to 17,04,300
21 LPA in hand salary1,31,800 to 1,48,10015,81,600 to 17,77,600
22 LPA in hand salary1,37,300 to 1,54,20016,47,600 to 18,50,900
22.5 LPA in hand salary1,40,100 to 1,57,20016,81,200 to 18,87,500
24 LPA in hand salary1,48,300 to 1,66,40017,79,600 to 19,97,500
26 LPA in hand salary1,59,400 to 1,78,60019,12,800 to 21,44,100
28 LPA in hand salary1,70,500 to 1,90,80020,46,000 to 22,90,700
30 LPA in hand salary1,81,500 to 2,03,10021,78,000 to 24,37,300
34 LPA in hand salary2,03,600 to 2,27,50024,43,200 to 27,30,500
35 LPA in hand salary2,09,100 to 2,33,60025,09,200 to 28,03,800
36 LPA in hand salary2,14,700 to 2,39,70025,76,400 to 28,77,100
37 LPA in hand salary2,20,200 to 2,45,80026,42,400 to 29,50,420
40 LPA in hand salary2,36,800 to 2,64,10028,41,600 to 31,70,300
45 LPA in hand salary2,64,400 to 2,94,73531,72,800 to 35,36,800
85 LPA in hand salary4,66,000 to 5,39,00055,92,000 to 64,68,800
90 LPA in hand salary4,92,500 to 5,69,60059,10,000 to 68,35,300
1 crore per annum in hand salary5,45,100 to 6,30,60065,41,200 to 75,68,300

Assumptions for the above table -

  • HRA is assumed to be at 50% of Basic Pay considering Metro cities like Mumbai,Delhi,Kolkata and Chennai
  • 12% EPF of Basic
  • Age is less than 60 yrs
  • Old regime considered
  • 1.5 lakh 80C is completely utilised
  • 50% of HRA is completely utilised

LPA full form — LPA means Lakh Per Annum. It is one of the most commonly used term in Indian employment scenario to calculate the salary of an individual per annum.

1.  What do I need to know to use the salary calculator?

You should only know your gross salary and total bonus. Once you provide the data, the calculator will show the other relevant salary components in no time.

2. How does the calculator determine the basic pay?

It calculates the basic salary as a percentage of the CTC. You may change the percentage based on your requirements.

3.  Can I find the TDS on the salary calculator?

You cannot find the TDS on salary calculator separately. You can easily find the TDS amount on your salary slip.

4. Does the salary calculator show the deductions?

Yes, the calculator shows the professional tax and provident fund deductions. It also reflects the total deductions.

The in-hand salary calculator is a free tool that you can use anytime. Its powerful mechanism offers you the required data in a jiffy and without any errors. When using the calculator, be careful about providing the correct amounts required to get accurate results.

5. How much gratuity amount is deducted from salary?

Most companies deduct around 4.81% of your salary (This includes your Basic salary + Dearness Allowance)

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