In-Hand Salary Calculator India

In-hand salary is what lands in the employee's bank account. It is not the same as gross salary or CTC. Employers in India deduct statutory contributions and income tax before paying the net amount.

This calculator follows the 2025-26 Income Tax Act slabs and the standard EPFO, ESIC and state professional-tax rules. It is a close estimate; your actual payslip may differ if your employer has additional allowances, reimbursements or retiral benefits.

How the calculation works

Split gross into components: basic is usually 50%, HRA 20% and the rest is special allowance. Basic drives PF.
PF: employee contributes 12% of EPF wages (basic capped at ₹15,000 unless the employer opts for actual basic).
ESI: 0.75% of gross is deducted if gross is ₹21,000 or below. Employer adds 3.25%.
Professional tax: depends on the state and gross slab, deducted only in specific months for some states.
TDS: annual tax is projected from monthly gross × 12, standard deduction, HRA exemption (old regime) and regime slabs, then divided by 12.

Worked example

A Bengaluru employee with a monthly gross of ₹25,000 (basic ₹12,500, HRA ₹5,000, special ₹7,500), rent ₹8,000 and old regime:

PF employee = 12% of ₹12,500 = ₹1,500
ESI = 0.75% of ₹25,000 = ₹188
PT = ₹200 (Karnataka monthly slab)
HRA exemption = minimum of HRA, 50% basic, rent − 10% basic = ₹3,250
Annual taxable ≈ (₹25,000 × 12) − ₹50,000 − (₹3,250 × 12) = ₹2,51,000
TDS ≈ ₹0 under old regime (§87A rebate up to ₹5 lakh taxable)
In-hand ≈ ₹25,000 − ₹1,500 − ₹188 − ₹200 = ₹23,112

Frequently asked questions

Is in-hand salary the same as CTC?

No. CTC is the total cost to the employer, including employer PF, ESI and other benefits. In-hand is the net amount paid to the employee.

Why is PF capped at ₹15,000?

EPFO rules set the standard wage ceiling at ₹15,000 for EPF and EPS contributions. Employers may choose to contribute on actual basic above this, but that is optional.

Does this calculator include bonus?

No. Bonus, arrears and variable pay are added to the month they are paid and can change the TDS for that month.

How the calculation works

Split gross into components: basic is usually 50%, HRA 20% and the rest is special allowance. Basic drives PF.

PF: employee contributes 12% of EPF wages (basic capped at ₹15,000 unless the employer opts for actual basic).

ESI: 0.75% of gross is deducted if gross is ₹21,000 or below. Employer adds 3.25%.

Professional tax: depends on the state and gross slab, deducted only in specific months for some states.

TDS: annual tax is projected from monthly gross × 12, standard deduction, HRA exemption (old regime) and regime slabs, then divided by 12.

Worked example

A Bengaluru employee with a monthly gross of ₹25,000 (basic ₹12,500, HRA ₹5,000, special ₹7,500), rent ₹8,000 and old regime:

PF employee = 12% of ₹12,500 = ₹1,500

ESI = 0.75% of ₹25,000 = ₹188

PT = ₹200 (Karnataka monthly slab)

HRA exemption = minimum of HRA, 50% basic, rent − 10% basic = ₹3,250

Annual taxable ≈ (₹25,000 × 12) − ₹50,000 − (₹3,250 × 12) = ₹2,51,000

TDS ≈ ₹0 under old regime (§87A rebate up to ₹5 lakh taxable)

In-hand ≈ ₹25,000 − ₹1,500 − ₹188 − ₹200 = ₹23,112