About Salary Calculator

This salary calculator helps you estimate your monthly in-hand salary from your annual CTC. It includes deductions like PF, Professional Tax, and other contributions.

How it works

We divide your annual CTC into monthly salary and subtract mandatory deductions like EPF, Professional Tax, and Employee PF to calculate your take-home salary.

Benefits

• Easy salary breakdown
• Accurate monthly estimate
• Helps in job offer comparison
• Useful for financial planning

How Do Salary Calculators Work?

For calculating the take-home salary, an individual must enter the CTC bonus, PF, professional tax, deductions, etc. Understand with an example here. Assume your Cost To Company (CTC) is Rs 5 lakh. The employer gives you a bonus of Rs 50,000 for the financial year. Then your total gross salary is Rs 5,00,000 – Rs 50,000 = Rs 4,50,000 (Note, the bonus is deducted from the CTC).

Gross Salary = Rs 5,00,000 – Rs 50,000 = Rs 4,50,000

• The gross salary tends to deduct the professional tax of Rs 2,400 a year (example).

• Next, it deducts the contributions towards the Employee Provident Fund (EPF) made by both the employer and the employee.

• EPF contribution is calculated on a maximum salary limit of Rs 15,000 per month. It deciphers to 12% of Rs 15,000, i.e. Rs 1,800 per month or Rs 21,600 per year.

• Let us consider the yearly contribution of Rs 21,600 towards the EPF, made by the employee and similarly by the employer towards EPF (Note, 8.33% of the employer’s contribution will get directed to the employee pension scheme)

• Next, let us assume the employee also has a yearly deduction of Rs 2,000 towards certain employee insurance.

• Total Deductions = Professional tax + EPF (Employee Contribution) + EPF (Employer Contribution) + Employee Insurance

Total Deductions = Rs 2,400 + Rs 21,600 + Rs 21,600 + Rs 2,000 = Rs 47,600. Take Home Salary = Gross Pay – Total Deductions Take Home Salary = Rs 4,50,000 – Rs 47,600 = Rs 4,02,400