Salary Calculator

What this calculator does, step by step

The calculator rebuilds a typical Indian payslip from the CTC you enter. Basic pay is taken as the percentage you set (40% by default). HRA is 50% of basic for the four metro cities and 40% elsewhere. The employer's PF contribution is 12% of basic and the gratuity accrual is 4.81% of basic. Employer ESI (3.25% of gross) is added only when monthly CTC is ₹21,000 or less. Special allowance is whatever is left of monthly CTC after those items, so the structure always adds up to your CTC.

Gross salary is basic plus HRA plus special allowance plus any monthly bonus you enter. From gross, the calculator deducts employee PF (12% of basic), the professional tax you enter, and an estimate of income tax under the new tax regime: a ₹75,000 standard deduction, the current slabs, the Section 87A rebate for taxable income up to ₹12 lakh (with marginal relief just above it) and 4% cess, spread over twelve months as TDS. What remains is your in-hand salary.

Worked example: CTC ₹10,00,000, metro, 40% basic, no bonus

Real payslips also carry items the calculator leaves out, such as dearness allowance, leave travel allowance, meal coupons, an employer NPS contribution, or a group insurance premium. Use the bonus field for variable pay that is actually paid monthly.

The components of a CTC

EPF and EPS: where the two 12% contributions go

You contribute 12% of basic plus DA to the Employees' Provident Fund, and your employer contributes another 12%. The employer's share is split: 8.33% goes to the Employees' Pension Scheme (EPS) and the rest to your EPF account. The EPS share is calculated on a wage ceiling of ₹15,000 a month, so it is capped at ₹1,250 a month; anything above that from the employer's 12% flows into EPF. The ₹15,000 ceiling is also the statutory minimum wage base for mandatory PF, which is why some employers contribute 12% of ₹15,000 rather than 12% of your full basic. This calculator assumes 12% of full basic on both sides, which many organised private employers follow.

Your own 12% counts toward the ₹1.5 lakh Section 80C limit under the old tax regime, and you can add a voluntary provident fund (VPF) contribution above 12% if you want more of your salary in EPF. EPFO declares the interest rate for each financial year; check the current rate on the EPFO website rather than relying on last year's figure.

Gratuity: the 4.81% explained

Under the Payment of Gratuity Act, 1972, an employee who leaves after five years of continuous service is paid 15 days of last drawn basic plus DA for every completed year of service. Because the Act uses a 26-day working month, the formula is 15 divided by 26, multiplied by last drawn basic plus DA, multiplied by completed years. Spread over a year, 15/26 of one month's basic is 4.81% of basic per month, which is the accrual employers show in the CTC.

Example: last drawn basic plus DA of ₹40,000 a month and seven completed years gives 15/26 x 40,000 x 7 = ₹1,61,538. Gratuity received by employees covered by the Act is exempt from income tax up to ₹20 lakh over a working life. If you leave before completing five years, the accrued amount is not paid, so for a two-year stint the gratuity line in the CTC is money you will never see.

HRA exemption (old tax regime only)

Under Section 10(13A) and Rule 2A, the exempt part of HRA is the least of three amounts: the HRA you actually receive; rent paid minus 10% of basic plus DA; and 50% of basic plus DA if you live in Delhi, Mumbai, Kolkata or Chennai, or 40% elsewhere. The rest of the HRA is taxable. The exemption is available only under the old regime; under the new regime HRA is fully taxable, which is why the city selector here changes only the size of the HRA line, not the tax estimate.

Example: basic ₹40,000 a month, HRA received ₹20,000, rent paid ₹15,000, metro city. The three figures are ₹20,000; ₹15,000 minus ₹4,000 = ₹11,000; and 50% of ₹40,000 = ₹20,000. The exempt HRA is ₹11,000 a month and ₹9,000 is taxed. Keep rent receipts, and if annual rent exceeds ₹1 lakh your employer will ask for the landlord's PAN.

New regime, old regime, and your take-home

The new tax regime, which this calculator uses, gives a ₹75,000 standard deduction and taxes income in slabs of 5% (₹4 lakh to ₹8 lakh), 10% (to ₹12 lakh), 15% (to ₹16 lakh), 20% (to ₹20 lakh), 25% (to ₹24 lakh) and 30% above that, with a Section 87A rebate that brings tax to zero when taxable income is ₹12 lakh or less. These slabs apply for FY 2025-26 and continue for FY 2026-27 as of September 2026. The old regime keeps a ₹50,000 standard deduction and older slabs (5% from ₹2.5 lakh, 20% from ₹5 lakh, 30% above ₹10 lakh) but allows HRA exemption, Section 80C, Section 80D and home loan interest deductions.

Take the ₹10 lakh example above. Under the new regime the taxable income is ₹8,57,760 and the tax is zero after the rebate. Under the old regime, with rent of ₹20,000 a month giving a full ₹2,00,000 HRA exemption and ₹1,50,000 of Section 80C investments (your ₹48,000 of employee PF counts toward it), taxable income is ₹5,32,760 and the tax is ₹19,814 including cess, about ₹1,651 a month. The new regime wins here. The old regime tends to come out ahead only when large deductions stack up, typically home loan interest plus HRA plus 80C plus 80D. Test your own numbers with the income tax calculator, which compares both regimes.

Reading and negotiating an offer letter

• Ask for the fixed monthly gross, not just the CTC. Two offers with the same CTC can differ by thousands of rupees a month in hand.
• Separate fixed from variable. Variable pay is counted at 100% in the CTC but is paid on performance; assume a partial payout when comparing.
• Check what sits in retirals. Employer PF and gratuity are your money eventually, but they inflate the headline number and gratuity is forfeited before five years.
• Watch for one-time items. Joining bonuses often carry a clawback if you leave within a year, and stock grants are usually shown at a notional value.
• Insurance and perks have real value but are not cash. Ask whether the premium is inside the CTC.
• Compare in-hand plus retirals across offers rather than the CTC figure alone.

For a longer walkthrough of a typical offer, read CTC vs in-hand salary explained.

Estimated in-hand salary for common CTC levels

Computed with this calculator's logic: 40% basic, metro HRA, no bonus, ₹200 professional tax, new tax regime slabs for FY 2025-26 and FY 2026-27, 4% cess. Actual in-hand depends on your company's structure and declarations.

Professional tax by state

Professional tax is levied by state governments under Article 276 of the Constitution and cannot exceed ₹2,500 a year. Each state sets its own monthly slabs, and several states and union territories do not levy it. Change the professional tax field above to match your state.

Slabs shown are for the highest salary band in each state as of September 2026; lower bands and exemptions (for example for women or senior citizens in some states) exist. Confirm with your state's commercial tax department.

Frequently Asked Questions