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In Hand Salary Calculator
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.
How to use a Salary Calculator?
The process to use the salary calculator is quick and simple. Follow the three steps given below:
Step 1: Choose if you want to calculate monthly or yearly salary.
Step 2: Enter the gross salary and total bonus amount to determine Cost to Company (CTC).
Step 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'.
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.
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.
Take-Home Salary = Gross Salary – (Income Tax + Employee Provident Fund (EPF) + Professional Tax (if applicable))
Gross Salary = Basic Salary + Allowances + Bonuses + Overtime Pay (if applicable)
Gratuity = (Basic Salary + Dearness Allowance) × 15 × (Years of Service) ÷ 26
Taxable Income = Gross Salary - EPF/PPF Contribution - Tax-Free Allowances - HRA - LTA - Health Insurance Premiums - Tax-Saving Investments (e.g., 80C, 80D) - Other Deductions (e.g., Standard Deduction, Home Loan Interest)
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.
1. Gross Salary: ₹1,000,000
2. Deductions:
- Basic Salary (50% of Gross Salary): ₹1,000,000 × 50% = ₹500,000
- Employee Provident Fund (EPF Contribution) – 12% of Basic Salary: ₹500,000 × 12% = ₹60,000
- Professional Tax (average): ₹2,500 (varies by state)
3. Income Tax Calculation - India’s 2024-25 (AY 2025-26):
As announced in the Union Budget 2024, the income tax slabs under the new tax regime have been revised. These updated rates will take effect from 1st April 2025, and will be applicable for the Assessment Year 2025-26. The revised income tax slabs for salaried individuals are as follows:
New Regime (FY 2024-25)
Here’s the simple income tax calculation for a salary of ₹10,00,000 under the New Tax Regime for FY 2024–25 (AY 2025–26):
- First ₹3,00,000: No tax (₹0)
- Next ₹4,00,000 (₹3,00,001 – ₹7,00,000): ₹4,00,000 × 5% = ₹20,000
- Next ₹3,00,000 (₹7,00,001 – ₹10,00,000): ₹3,00,000 × 10% = ₹30,000
Total Tax:
- ₹0 (for first ₹3,00,000) + ₹20,000 (for next ₹4,00,000) + ₹30,000 (for the last ₹3,00,000) = ₹50,000
4. Total Deductions:
- Income Tax: ₹50,000
- EPF: ₹60,000
- Professional Tax: ₹2,500
Total Deductions: ₹50,000 + ₹60,000 + ₹2,500 = ₹1,12,500
5. Take-Home Salary:
Gross Salary - Total Deductions = ₹1,000,000 - ₹1,12,500 = ₹8,87,500
Final Take-Home Salary: ₹8,87,500
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.
Assumptions:
- Gross Salary: ₹1,000,000
- EPF Contribution: 12% of basic salary (assuming basic salary is 50% of gross salary)
- HRA Exemption: We’ll assume 40% of basic salary as HRA and 50% of that as exempt.
- LTA Exemption: ₹20,000 (assumed)
- Health Insurance Premium: ₹15,000 (assumed under Section 80D)
- Tax-Saving Investments (e.g., under 80C): ₹150,000 (maximum allowed)
- Standard Deduction: ₹50,000 (as per 2023-24 rules)
Now, let’s calculate each component.
For a gross salary of ₹1,000,000, the taxable income is calculated as ₹605,000, after accounting for EPF, HRA exemption, LTA, health insurance premiums, tax-saving investments, and the standard deduction.
Breakdown of Deductions:
- EPF Contribution (12% of basic salary): ₹60,000
- HRA Exemption (50% of HRA): ₹100,000
- LTA Exemption: ₹20,000
- Health Insurance Premium: ₹15,000
- Tax-Saving Investments (80C): ₹150,000
- Standard Deduction: ₹50,000
Total deductions: 60,000 + 100000 + 20000 + 15000 + 150000 + 50000 = 395000
Net Taxable Income after Taxes: ₹10,00,000 - 3,95,000 = 6,05,000
Total deductions reduce the gross salary to arrive at the taxable income of ₹605,000.
How to Calculate Gratuity?
Gratuity = (Basic Salary + Dearness Allowance) × 15 × (Years of Service) ÷ 26
- Gross Salary = ₹1,000,000
- Basic Salary = 50% of Gross Salary = ₹500,000
- Dearness Allowance (DA) = ₹0 (Assumed)
- Years of Service = 20 years
Calculation:
Basic Salary = ₹500,000 (50% of ₹1,000,000)
Dearness Allowance (DA) = ₹0 (Assumed DA is not applicable)
Total of Basic Salary + DA = ₹500,000 + ₹0 = ₹500,000
Gratuity Calculation:
Gratuity
=
(500,000) × 15 × 20
26
=
( 500,000 × 300 )
26
=
150,000,0000
26
=
Benefits of Salary Calculator in India
Quick Results: Jupiter’s salary calculator shows take-home pay within seconds.
Tracks Changes: It helps you understand changes in your salary when you receive bonuses or deductions.
Clear Breakdown: The calculator gives a clear view of each part of your salary, including all amounts and deductions.
Budgeting Help: By estimating your take-home pay after taxes, the calculator is useful for planning monthly expenses and savings.
Supports Decisions: When considering a job offer or a raise, the calculator adjusts to show your new salary structure, helping you make informed choices about income, cost of living, and taxes.
Negotiation Tool: With a breakdown of gross and net pay, the calculator is helpful during salary discussions to make sure offers match your needs.
Detailed Deductions: Jupiter’s CTC calculator also provides details on monthly and yearly deductions, plus contributions toward EPF from both you and your employer.
Some commonly searched salaries
Please note that this is just for informational purposes only.
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.
FAQs related to salary calculator
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)
6. What are the main components of salary structure?
The main components of a salary structure include basic salary, HRA, DA, conveyance, medical allowance, special allowance, provident fund, professional tax, and bonuses.
7. Does CTC include PF?
Yes, CTC (Cost to Company) typically includes PF (Provident Fund) as part of the total compensation package, along with other benefits like bonuses and allowances.
8. How do I know the break-up of my salary?
You can find the breakdown of your salary on your salary slip or pay statement, which typically lists components like basic salary, allowances, deductions (e.g., PF and taxes), and bonuses. Your HR department can also provide detailed information.
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