Salary Calculator
Calculate your monthly take-home salary with all deductions. Get detailed breakup of your CTC, gross salary, deductions, and net salary.
Enter Your Salary Details
Salary Summary
Salary Components
Deductions Breakdown
Annual Projection
Salary Optimization Tip
Consider increasing your HRA component to maximize tax benefits under the old tax regime. You can save up to ₹1,800 more per month.
Understanding Salary Components
Basic Salary
The core component of your salary (40-50% of CTC). It's fully taxable and forms the basis for calculating other components.
- PF Contribution: 12% of Basic (employee) + 12% (employer)
- Gratuity: Calculated as (Basic + DA) × 15/26 × years of service
- ESI: Applicable if Basic ≤ ₹21,000
House Rent Allowance
Provided to meet housing expenses. Partially or fully exempt from tax if you pay rent.
- Tax Exemption: Minimum of:
1. Actual HRA received
2. 50% of Basic (metro) or 40% (non-metro)
3. Rent paid minus 10% of Basic - Documentation: Rent receipts required for exemption
Dearness Allowance
Cost of living adjustment allowance. Fully taxable but included in retirement benefits calculations.
- Calculation: Usually a percentage of Basic salary
- Purpose: To offset inflation impact
- Retirement: Included in gratuity and pension calculations
Special Allowances
Flexible component that can be structured for tax efficiency. Includes conveyance, medical, etc.
- Conveyance: ₹1,600/month tax-free for commute
- Medical: ₹15,000/year tax-free (with bills)
- LTA: Tax exemption on travel twice in 4 years
About Salary Calculation
The Salary Calculator helps you understand your complete salary structure, calculate take-home pay, and optimize your salary components for maximum tax benefits.
Key Salary Terms Explained
CTC (Cost to Company)
The total cost company spends on an employee annually. Includes basic salary, allowances, PF, gratuity, insurance, and other benefits.
Gross Salary
Total salary before any deductions. Includes basic salary, HRA, DA, and all allowances.
Net Salary (Take-Home)
The amount you receive in your bank account after all deductions.
Provident Fund (PF)
Retirement savings scheme where both employee and employer contribute 12% of basic salary each month.
Tax-Saving Salary Structure
Maximize HRA Benefit
If you pay rent, structure your salary to have higher HRA component. For metro cities, you can claim 50% of Basic as HRA exemption.
Use Tax-Free Allowances
Include conveyance (₹1,600/month), medical (₹15,000/year), LTA, and books/newspaper allowances which are tax-exempt.
Choose Right Tax Regime
If you have home loan, investments, and insurance premiums, old regime may be better. Otherwise, new regime offers lower rates.
Common Deductions
| Deduction | Amount/Rate | Applicability | Tax Treatment |
|---|---|---|---|
| Provident Fund (PF) | 12% of Basic | All employees | Exempt up to ₹1.5L (80C) |
| Professional Tax | ₹200/month (varies) | State specific | Fully deductible |
| Income Tax (TDS) | As per slabs | Income > ₹2.5L/₹3L | Based on regime |
| ESI | 0.75% of Gross | Gross ≤ ₹21,000 | Not applicable |
| NPS | Up to 10% of Basic | Optional | Extra ₹50,000 (80CCD) |
Salary Negotiation Tips
- Focus on CTC: Negotiate total package, not just basic salary
- Understand Components: Know what each component means for your take-home
- Consider Benefits: Health insurance, PF, gratuity, and bonuses matter
- Tax Efficiency: Structure salary for maximum tax savings
- Annual Increment: Understand how increments affect each component