Salary Calculator

CTC stands for Cost to Company. It represents the total annual expenditure incurred by an employer on an employee, including direct salary, statutory contributions (PF, gratuity), allowances, bonuses, and non-cash benefits.

Gross salary is the total earnings an employee receives before employee-side deductions (such as Employee PF, Professional Tax, and Income Tax/TDS). It excludes employer contributions like Employer PF and Gratuity.

Take-home salary (or in-hand salary) is the actual net amount credited to your bank account after subtracting all statutory deductions (Employee PF, Professional Tax, ESI) and estimated income tax (TDS) from your gross salary.

CTC includes employer contributions, gratuity, performance bonuses, and perks that you do not receive in cash every month. In-hand salary is your monthly net disposable cash after all deductions.

Monthly Take-Home = (Gross Earnings − Employee PF − Professional Tax − ESI − Monthly TDS).

Annual Take-Home is the cumulative sum of 12 months of net take-home salary plus any annual net bonuses paid out.

Basic salary is the foundational core component of your pay structure (typically 40% to 50% of gross), on which PF, gratuity, and HRA are calculated. It is fully taxable.

House Rent Allowance is paid to help employees meet accommodation expenses. Under the Old Tax Regime, an exemption can be claimed on rent paid; under the New Tax Regime, HRA is fully taxable.

Special allowance is usually the residual balancing component of your gross salary after factoring in Basic, HRA, and specific allowances. It is fully taxable.

Employee Provident Fund is a mandatory retirement savings scheme where 12% of basic salary (or statutory capped wage of ₹15,000) is deducted from the employee's monthly pay.

The employer also contributes a matching 12% towards PF and pension (EPS). This amount is part of your CTC but is not credited to your monthly take-home pay.

Yes. In almost all Indian companies, Employer PF is factored into the gross CTC package offered to employees.

Professional Tax (PT) is a state-level statutory levy on salaried individuals, capped at a maximum of ₹2,500 per year (commonly ₹200 per month with ₹300 in one month).

Employee State Insurance (ESI) is social security healthcare coverage for employees whose monthly gross salary is ₹21,000 or below (0.75% employee share, 3.25% employer share).

National Pension System is a voluntary government-sponsored retirement savings scheme that provides market-linked returns and optional tax deductions under Section 80CCD.

Variable pay is performance-linked compensation based on company profits or individual milestones. It is typically paid quarterly or annually and is not guaranteed monthly cash.

A lump-sum incentive paid annually (such as Diwali bonus or performance bonus). It is fully taxable and subject to TDS when paid.

Gratuity is a statutory monetary benefit provided by employers under the Payment of Gratuity Act to employees who complete at least 5 years of continuous service (roughly 4.81% of basic salary).

Taxable income is calculated by subtracting allowable exemptions and standard deductions from gross earnings, then applying progressive income tax slab rates, Section 87A rebate, and 4% Health & Education Cess.

Taxable income is your gross annual earnings minus standard deduction (₹75,000 under New Regime / ₹50,000 under Old Regime) and eligible deductions (80C, 80D, HRA under Old Regime).

The New Tax Regime is the default tax structure featuring lower progressive slab rates and a higher standard deduction (₹75,000), with zero tax on taxable income up to ₹7,00,000 (effectively ₹7.75 Lakh gross salary) via Section 87A rebate.

The Old Tax Regime offers higher slab rates but allows traditional itemized tax-saving deductions including Section 80C (PF, ELSS, insurance up to ₹1.5L), 80D (health insurance), and HRA rent exemptions.

The New Regime is generally beneficial for individuals with low to moderate investments or rent deductions. The Old Regime is advantageous only if your total eligible exemptions and deductions exceed ₹3.75 Lakh to ₹4 Lakh.

A flat deduction allowed from salary income without requiring investment proofs. It is ₹75,000 under the New Tax Regime and ₹50,000 under the Old Tax Regime.

Under Section 87A, resident individuals with taxable income up to ₹7,00,000 under the New Regime pay zero tax because the calculated tax is fully rebated up to ₹25,000.

A 4% Health and Education Cess is levied on the total calculated income tax amount across all tax regimes.

Because CTC includes employer-side statutory costs (PF, gratuity, insurance), performance bonuses not paid monthly, and employee-side taxes (PF, PT, TDS) that reduce liquid monthly cash.

Subtract monthly Employee PF, Professional Tax, and estimated monthly TDS from your monthly gross earnings.

Deduct employer PF (12% of basic) and gratuity (4.81% of basic) to find gross salary, then deduct employee PF, PT, and income tax.

Hike Percentage = [(New CTC − Old CTC) ÷ Old CTC] × 100. New Monthly CTC = New Annual CTC ÷ 12.

Do not compare headline CTC alone. Compare fixed in-hand cash salary, variable pay conditions, employer benefits, and take-home differences.

No. Variable pay is contingent on corporate and individual performance targets and is usually disbursed annually or bi-annually.

Usually no. Bonuses are disbursed as single annual or milestone payouts rather than recurring monthly credits.

Yes. It supports the latest Union Budget provisions including the ₹75,000 standard deduction and progressive slabs for the New Tax Regime.

Yes. Tax slabs and standard deductions are modified through Union Budgets, which is why our engine supports configurable financial years.

No. It provides mathematical estimates. Actual employer payroll structures, company-specific policies, and exact tax assessments may differ.

No. Calculations are processed 100% locally in your web browser. No personal payroll or salary data is ever uploaded to a server.

Yes. The tool operates with complete client-side privacy without analytics tracking or cloud databases.