Salary Calculator

Formula

• Basic = CTC × basic%
• Employer PF = 12% of basic ; Gratuity = 4.81% of basic
• Gross salary = CTC − employer PF − gratuity − bonus
• Taxable = Gross + bonus − ₹75,000 standard deduction
• In-hand = (Gross + bonus − employee PF − professional tax − income tax) / 12

CTC is the employer's total cost, not your salary. Employer PF and gratuity are part of CTC but never reach your account monthly, and employee PF is deducted from the gross. What lands in the bank is gross minus the two PF-side deductions, professional tax and TDS. The gap between CTC and in-hand is typically 25–35% at higher salaries.

Step-by-step calculation

1. 1

   Basic pay

   1,800,000 × 40%

   ₹720,000

2. 2

   Employer PF

   720,000 × 12%

   ₹86,400

3. 3

   Gratuity

   720,000 × 4.81%

   ₹34,632

4. 4

   Gross salary

   CTC − employer PF − gratuity

   ₹1,678,968

5. 5

   Taxable income

   gross − 75,000

   ₹1,603,968

6. 6

   Tax + 4% cess

   400,000 @ 5% = 20,000 + 400,000 @ 10% = 40,000 + 400,000 @ 15% = 60,000 + 3,968 @ 20% = 794

   ₹125,625

7. 7

   Annual in-hand

   gross − employee PF − P.tax − tax

   ₹1,464,543