In Hand Salary Calculator
Indian Salary Calculator
Our free online salary calculator makes it easy to estimate your take-home pay; or that of your employees. Whether you are a full-time employee or a contractor, this powerful tool provides a detailed breakdown of your earnings after taxes, contributions, and other deductions.
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Employee Deductions
In-Hand Salary Calculation Results
Deductions
Take-Home Salary
Calculation Formula
Gross Salary: CTC - Bonus = ₹8,00,000 - ₹50,000 = ₹0
Total Deductions: Professional Tax + Employee PF + Employer PF + Insurance + Income Tax + Other = ₹200 + ₹4,000 + ₹4,000 + ₹400 + ₹6,000 + ₹0 = ₹0
Annual Take-Home: Gross Salary - Total Deductions = ₹0
Monthly Take-Home: Annual Take-Home ÷ 12 = ₹0
Step-by-Step Explainer
How can you calculate the components in a salary?
Calculate in-hand salaries in 4 simple steps:
Enter Your Annual CTC
Start by inputting your total Cost to Company (CTC), which is the complete amount a company spends on their employees annually.
Specify Bonus
Enter any bonus amount included in your CTC.
Add Deductions
Specify all monthly deductions such as Professional Tax, PF contributions, and insurance.
View In-Hand Salary
Get a detailed breakdown of your monthly and annual take-home salary.
Frequently asked questions
Visit our full FAQ page or get in touch with Frederic, Co-Founder of PayrollRabbit.
- In-hand salary, also known as take-home salary or net salary, is the actual amount an employee receives after all deductions such as income tax, employee provident fund, employer provident fund, professional tax, and other deductions have been subtracted from the gross salary.
- The In-Hand Salary Calculator is a free tool developed by PayrollRabbit to calculate your actual take-home salary from your Cost to Company (CTC). It helps you understand the difference between CTC, gross salary, and in-hand salary by factoring in all statutory and voluntary deductions.
- CTC (Cost to Company) is the total amount a company spends on an employee including salary, benefits, and bonuses. Gross salary is calculated as CTC minus bonus. In-hand salary is what you actually receive after all deductions. Formula: Gross salary = CTC - Bonus, then In-hand salary = Gross salary - (Professional tax + Employee PF + Employer PF + Insurance + Income tax + Other deductions).
- Common deductions include: Professional Tax (varies by state, maximum ₹2,500 per year), Employee Provident Fund contribution (typically 12% of basic salary), Employer Provident Fund contribution (typically 12% of basic salary), Employee Insurance premiums, Income Tax (TDS) based on tax slabs, and other voluntary deductions like NPS. These deductions reduce your gross salary to arrive at the in-hand amount.
- Your in-hand salary is lower than CTC because the calculation includes bonus removal from CTC and various statutory deductions including both employee and employer PF contributions, professional tax, insurance, and income tax. Typically, in-hand salary is 70-80% of CTC depending on your tax bracket and deductions. Understanding this breakdown helps in better financial planning.
- You can increase your in-hand salary by: Maximizing tax-saving investments under Section 80C (like PF, ELSS, PPF), claiming HRA exemption if applicable, utilizing other tax deductions like medical insurance premiums under Section 80D, and structuring your salary to include tax-free allowances. Proper tax planning can significantly increase your take-home amount.
- Income tax deductions depend on your annual taxable income and applicable tax slabs. For example, employees with ₹4 LPA may have minimal or no income tax liability if their taxable income falls below the exemption limit (around ₹2.5-3 lakh depending on tax regime). However, employees with ₹10 LPA will have significant income tax liability and TDS deductions. The tax amount depends on your total taxable income, chosen tax regime, and available deductions.