Salary Calculator

Understand your take-home pay by calculating gross salary, deductions, and net salary.

Earnings & Deductions

₹
%
Typically 12% of Basic + DA.
%
Typically 0.75% for salary < ₹21,000.
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Varies by state (max ₹200/month in many states).
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e.g., LTA, medical insurance, etc.

Your Pay Breakdown

Gross Monthly Salary:

₹ 0

Total Deductions:

₹ 0

Net Monthly Salary:

₹ 0

Annual Summary

Gross Annual Salary:

₹ 0

Total Annual Deductions:

₹ 0

Net Annual Salary:

₹ 0

Understanding Your Salary: Gross vs. Net Pay

Our Salary Calculator helps you demystify your payslip and understand where your money goes.

Gross Salary vs. Net Salary

Understanding the difference between gross and net salary is fundamental to managing your personal finances. Your Gross Salary is the total amount of money your employer pays you before any deductions are made. This includes your basic pay, allowances (like HRA, DA, LTA), and any bonuses or commissions.

On the other hand, your Net Salary (or take-home pay) is the amount you actually receive in your bank account after all mandatory and voluntary deductions have been subtracted from your gross salary. It's the real money you have available for your expenses and savings.

Common Salary Deductions in India

Several standard deductions are typically applied to your gross salary in India. These include:

  1. Provident Fund (PF/EPF)
    A mandatory retirement savings scheme where both employee and employer contribute a percentage of the basic salary.
  2. Employee State Insurance (ESI)
    A health insurance scheme for employees earning below a certain wage limit, providing medical and other benefits.
  3. Professional Tax (PT)
    A state-level tax levied on individuals earning income from salary or profession. The amount varies by state and salary slab, with a maximum of ₹2,500 per annum.
  4. Income Tax (TDS)
    Tax Deducted at Source (TDS) on your salary, based on your income tax slab as per government regulations. Employers deduct this amount and deposit it with the income tax department.
  5. Other Deductions
    This can include deductions for LTA (Leave Travel Allowance), medical insurance premiums, loan repayments, union fees, or any other company-specific policies.

Key Components of Your Salary

A typical Indian salary structure can be complex, comprising several components:

  • Basic Salary: The core component, usually a fixed percentage of your total gross salary.
  • Dearness Allowance (DA): Paid to employees to offset the impact of inflation.
  • House Rent Allowance (HRA): Provided for rented accommodation. Its taxability depends on various factors.
  • Conveyance Allowance: For commuting expenses.
  • Medical Allowance: For medical expenses.
  • Special Allowance: Any other allowance provided by the employer.
  • Performance-Related Pay/Bonuses: Variable components based on individual or company performance.

Understanding these components helps you negotiate better and plan your finances more effectively.

Frequently Asked Questions

Income tax is calculated based on your annual taxable income and the prevailing tax slabs announced by the government. Deductions under sections like 80C, 80D, etc., can reduce your taxable income. This calculator provides a simplified estimate without considering all possible tax-saving deductions.

Basic salary is the fixed portion of your remuneration, and it forms the base for calculating other allowances like DA, HRA, and contributions to PF. A higher basic salary generally means higher PF contributions and often higher HRA, but it can also mean higher taxable income.

Fluctuations can occur due to various reasons: changes in income tax regulations, declaration of tax-saving investments, variable pay components (like performance bonuses), changes in PF or ESI contribution rates, or any ad-hoc deductions or reimbursements.