Salary Calculator India 2026

What is a Salary Calculator in India?[toc=What is Salary Calculator]

A salary calculator India is an online tool that calculates take-home salary by breaking down CTC into Indian salary components like basic pay, HRA, allowances, and statutory deductions. It shows the exact in-hand amount after EPF, professional tax, and income tax are deducted.

Indian salary structures include components like employer PF contributions and gratuity that employees never receive directly. An in hand salary calculator India handles these calculations instantly and shows monthly net pay under both tax regimes.

Let's look at the key components that make up an Indian salary structure.

What are the components of the salary structure?[toc=Salary Components]

A salary calculator in India shows how an employee's CTC splits into different earnings and deductions.

1. Basic Salary: The fixed core component earned before any additions or deductions. Basic salary typically makes up 40-50% of total CTC and determines all other allowances like HRA and PF contributions.
2. House Rent Allowance (HRA): Provided to employees living in rented accommodation. HRA is partially tax-exempt when rent receipts are submitted, but becomes fully taxable for employees who own their residence.
3. Leave Travel Allowance (LTA): Covers travel expenses during approved leave periods. LTA is tax-free when travel bills are submitted as proof, otherwise it gets taxed as regular income.
4. Medical Allowance: Provided by employers for healthcare expenses. The standard amount is ₹1,250 per month (₹15,000 annually) and is fully taxable in most cases.
5. Conveyance Allowance: Covers daily commute expenses between home and workplace. This allowance is tax-exempt up to reasonable limits for actual travel costs incurred.
6. Special Allowance: Makes up the difference between basic salary and total CTC. Special allowance is part of gross earnings but gets fully taxed under both tax regimes.
7. Bonus: Extra payments based on employee performance or company profits. Bonuses are added to gross salary and taxed as regular income.
8. Professional Tax: A state-level tax deducted from employee salaries every month. The maximum professional tax deduction is ₹2,500 per year, varying by state.
9. Employee Provident Fund Contribution: Employees contribute 12% of basic salary to their PF account monthly. Employers match this contribution, building retirement savings that earn tax-free interest.
10. Gratuity: An employer contribution that becomes payable after 5 years of continuous service. Gratuity is included in CTC calculations but not received in monthly salary disbursements.
11. Standard Deduction: The government allows ₹75,000 standard deduction on salary income under the new tax regime for FY 2025-26. This deduction reduces taxable income automatically without requiring proof of investment.

Calculate the exact gratuity amount with our gratuity calculator.

Once you understand these components, the next step is learning how to actually process them. Our guide on payroll in India walks through the complete calculation process.

Now let's see how CTC differs from what actually lands in the bank account.

What is the difference between CTC and In-Hand Salary?[toc=CTC vs In-Hand Salary]

CTC and in-hand salary are not the same, and the difference between them is often 30-40% of the total package.

Cost to Company (CTC): CTC is the total amount a company spends on an employee annually. It includes basic salary, allowances, bonuses, and employer contributions to PF and gratuity that employees don't receive directly.

In-Hand Salary: In-hand salary is the actual amount deposited in an employee's bank account each month. It's what remains after deducting employee PF contributions, professional tax, and income tax from gross salary.

The Key Difference: CTC includes costs like employer PF contributions and gratuity that never reach the employee's account. In-hand salary is typically 30-40% lower than CTC because of these non-cash components and mandatory deductions.

If you're a global company hiring in India, understanding these distinctions is critical for setting competitive packages. Learn more about hiring employees in India and structuring salaries correctly.

For example, a ₹10 lakh CTC might result in ₹60,000-65,000 monthly in-hand salary after all deductions.

Let's see how salary calculators actually compute these numbers.

How do salary calculators work?[toc=How Salary Calculators Work]

Salary calculators compute take-home pay by breaking down CTC and applying deductions automatically.

Input Required: Enter annual CTC, bonus amount, basic salary percentage, tax regime preference, etc.

The Calculation Steps include:

The calculator first determines gross salary.

Gross Salary = CTC - Bonus

It then breaks down salary components. Basic pay forms 40-50% of CTC. HRA and allowances make up the rest.

Next comes the deduction calculation.

Employee EPF = 12% of Basic Salary (capped at ₹1,800/month) Total Deductions = EPF + Professional Tax + Income Tax

Finally, it shows take-home salary.

Monthly Take Home Salary = (Gross Salary - Total Deductions) ÷ 12

Example: ₹10 Lakh CTC

Salary Breakdown:

• CTC: ₹10,00,000
• Bonus: ₹1,00,000
• Gross Salary: ₹9,00,000

Components:

• Basic Salary (50%): ₹4,50,000
• HRA (40% of basic): ₹1,80,000
• Special Allowance: ₹2,70,000

Deductions (FY 2025-26 New Regime):

• Employee EPF (12% of ₹15,000 × 12): ₹21,600
• Professional Tax: ₹2,400
• Income Tax: ₹0 (rebate under Section 87A for income up to ₹12 lakh)
• Total Deductions: ₹24,000

Result:

• Annual Take-Home: ₹8,76,000
• Monthly Take-Home: ₹73,000

One key factor that affects your take-home salary is which tax regime you choose.

Which tax regime should you choose for salary calculation in India?[toc=Old vs New Tax Regime]

India has two tax regimes for calculating income tax, and your choice directly impacts your monthly take-home salary.

New Tax Regime (Default from FY 2025-26)

This regime offers lower tax rates but removes most deductions. Income up to ₹12 lakh is tax-free due to the ₹75,000 standard deduction and ₹60,000 rebate under Section 87A.

It's best for employees with minimal investments in 80C, no home loan, and no HRA claims.

Old Tax Regime (Optional)

This regime has higher tax rates but allows deductions under Section 80C (₹1.5 lakh), HRA exemption, home loan interest (₹2 lakh), and other tax-saving investments.

It's better for employees with high 80C investments, home loans, or significant HRA claims.

Key Differences

Which Should You Choose?

• Choose new regime if your annual deductions (80C + HRA + home loan interest) are less than ₹2.5 lakh.
• Choose old regime if your total deductions exceed ₹2.5 lakh annually.

Not sure which regime saves you more? Use our income tax calculator to compare both regimes with your actual salary.

Most salary calculators in India let you compare both regimes to see which gives higher take-home pay.

Now let's see how to use Wisemonk's salary calculator for accurate results.

How to use Wisemonk salary calculator?[toc=Wisemonk Salary Calculator]

1. Enter the gross annual salary of the Indian employee into the calculator.
2. The calculator will automatically divide the annual salary into components such as Basic Salary, House Rent Allowance (HRA), Leave Travel Allowance (LTA), Special Allowance, and Flexible Benefits Allowance. It will also compute the Gross Monthly Salary.
3. The calculator then applies necessary deductions like Employer Provident Fund Contribution, Professional Tax, and Income Tax based on the New Tax Regime.
4. All mandatory deductions are summed up to provide the total deductions for the month.
5. Finally, the calculator subtracts the total deductions from the Gross Monthly Salary to arrive at the Net Monthly Pay, the actual take-home salary.

With Wisemonk’s Salary Calculator, all you need to do is enter the Gross Annual Salary, and it handles everything else automatically to provide accurate results in seconds!

If you want help to pay employees in India, check out our guide on "How to Pay Employees in India".

Want to Estimate Employee Costs in India?

Try Wisemonk’s Employee Cost Calculator, it gives you a detailed breakdown of both employee salary components and the total employer cost, including benefits, taxes, and statutory contributions.

Important Note: This salary calculator is intended to provide general guidance and estimated figures only. It should not be relied upon for exact tax or payroll calculations For precise figures and personalized advice, please consult a qualified tax professional.

What are the benefits of salary Calculator in India?[toc=India Salary Calculator Benefits]

Salary calculators save time and remove guesswork when evaluating job offers or planning monthly expenses.

• Instant Calculations: Get accurate take-home salary in seconds. Manual calculations can take 10-15 minutes and often contain errors in EPF or tax computations.
• Impact Analysis: See exactly how bonuses, raises, or additional deductions affect monthly pay. This helps employees understand salary changes during appraisals or mid-year adjustments.
• Component Breakdown: View detailed splits of basic salary, HRA, allowances, and all deductions. Employees can identify which components are taxable and which offer exemptions.
• Accurate Estimates: Know the exact monthly in-hand amount before accepting job offers. This prevents disappointment when the first salary arrives lower than expected.
• Job Offer Comparison: Compare multiple offers by their actual take-home pay instead of just CTC. A ₹12 lakh offer might give less in-hand than a ₹10 lakh offer with better salary structure.
• Tax Planning: Understand tax liability under both regimes. Employees can decide which tax regime saves more money based on their deductions and investments.

Salary calculators are essential, but if you're expanding into India, you'll face bigger decisions around entity setup versus using an EOR.

That covers everything about salary calculators and how they work in India.

How does Wisemonk help you with salary calculation in India?[toc=How Wisemonk Helps]

Wisemonk is a trusted Employer of Record (EOR) that handles complete payroll management for companies hiring in India. We manage salary calculations, compliance, and employee payments so you don't have to deal with the complexity.

Here's what we do:

• Accurate & Automated Salary Calculations: We automate everything from gross salary (basic, HRA, allowances, bonuses) to deductions like TDS, PF, and ESI. Error-free payroll, every month.
• Compliance with Indian Tax Laws: Full compliance with TDS, PF, ESI, and professional tax. Your business stays audit-ready and penalty-free.
• Custom Salary Structures: Build salary structures that match your policies. Flexible configuration for your compensation needs.
• Incorporation of Benefits: We include employee insurance, gratuity, and statutory bonuses in payroll automatically. Employees stay covered and satisfied.
• Employee Self-Service Portal: Your team accesses payslips, tax documents, and payroll info through our portal anytime.

Go Beyond Payroll: Full Workforce Solutions Wisemonk is your complete India solution. We also handle recruitment & onboarding, background verification, GCC setup, offshore team management, and company registration.

Use our salary calculator above to understand Indian salaries, then let Wisemonk handle your India payroll.

Ready to Simplify Payroll in India? Book a call today to explore how Wisemonk can help you manage payroll, compliance, and your global workforce in India.