In Hand Salary Calculator 2024-25 | Calculate Take Home Salary Online (2024)

Your current CTC

Variable component

Your salary slip has two main sections. One section is income or earnings. And the second part is deductions.

Income or earrings include components like basic salary, House Rent Allowance (HRA), Special/Other Allowances, etc. Additional components like Performance Bonus or Variable Pay and Reimbursem*nts also come under this section.

The second part, i.e. deductions, includes gratuity, employer and employee contributions to PF (Provident fund), professional tax, etc.

All these details can be intimidating and overwhelming for a salaried person to get an idea about their in-hand salary. And this is where the salary calculator can home handy. It will ask you for your CTC and a few basic details. And based on the inputs, it helps you calculate the in-hand or take-home salary.

We have explained the working of the salary calculator in detail in the upcoming segments. But before that let’s understand some of the key salary components in detail.

1. Basic salary

Basic salary is nearly 40-50% of the CTC. It is the base amount of the salary on which further additions and deductions are dependent.

2. Special allowance
Special allowance is the additional amount paid to employees for meeting different expenses like attire, food, academic allowance, internet subscription, phone, books, stationaries, etc.

The special allowance varies from a different company, and it is fully taxable in the hands of employees.

3. House rent allowance (HRA)

House rent allowance is a benefit that is received from the employer to meet rent expenses incurred by employees. In case, employees do not live in rented accommodation then HRA is fully taxable in the hands of the employee. You can use ET money’s HRA calculator. to estimate the total taxable HRA

4. Leave travel allowance (LTA)

As the name suggests, Leave Travel Allowance (LTA) is a benefit given to employees to cover travel expenses while they are on leave. It covers the train or bus fares or airfares incurred on travelling with or without family.

5. Bonus

Bonus is an additional payment linked with the employee's performance. It is fully taxable to the employees, and it is generally received at the end of the year.

6. Employee Provident Fund (EPF)

Employee provident fund or EPF is a saving scheme which is monitored by the central government. The purpose of EPF is to provide sufficient retirement funds to employees.

As per this scheme, nearly 12% of an employee’s basic salary is contributed to the provident fund. And also the same contribution is matched by the employer. Currently, the provident fund is offering an 8.1% return. This rate keeps changing as it is decided by the government on yearly basis.

7. Professional Tax

Professional tax is a direct tax imposed by the state government on employees and other individuals providing professional services. The rate of professional tax varies from state to state. However, the maximum amount of professional tax is capped at Rs 2,500 per year.

8. Gratuity

The gratuity is an employee benefit payable when you either retire from the company or quit after 5 years of service. A fixed percentage of your salary is calculated and deposited in the gratuity account. The final gratuity amount is based on your last drawn salary. For the calculation of gratuity, you can refer to ET money’s gratuity calculator tool.

Gratuity = (Basic salary + Dearness allowance) × 15/26 × No. of Years of Service

9. Gross Salary

Gross salary is the total amount of money an employee earns before any deductions or taxes are taken out.

Gross Salary = Cost to Company (CTC) - Employer's PF Contribution (EPF) - Gratuity

10. Take-Home Salary

Take-home salary is the amount of money an employee receives after all deductions, including taxes and other withholdings, have been subtracted from their gross salary. It's the actual income that an employee can use for their personal expenses.

Take-Home Salary = Gross Salary - Deductions (Income Tax + Employees PF Contribution (PF) + Prof. Tax)

Many individuals are confused between gross salary and CTC. Some of them assume that both are the same. But, that is not the case.

Gross salary is the after-tax amount you receive before deducting the PF contributions and gratuity payment. However, CTC is the company's total cost, which includes basic salary and other direct and indirect benefits.

The take-home salary calculator uses CTC and total deductions to measure the in-hand salary. Total deductions are subtracted from the CTC to calculate the take-home salary of the employee.

For Example, If the CTC of an employee is Rs. 900,000, the monthly PF contribution is Rs.2,250 and the monthly professional tax is Rs.500, then in this case net take-home salary will be:

Following are the steps that you can use to calculate the take-home salary from the CTC.

Step 1: First, you are required to enter the CTC
Step 2: Enter the variable part of the CTC like the bonus
Step 3: Enter the basic salary from your CTC
Step 4: ET Money’s Salary Calculator will show the approximate net take-home salary
Step 5: Lastly, You also have the option to calculate actual in-hand salary. In this step, you can enter actual values like HRA, actual rent paid, gratuity, EPF contribution and other allowances, to calculate the actual in-hand salary.

• ET money’s online salary calculator is fast and simple to use. Following simple 5 steps will allow you to know your in-hand salary.
• Calculating take-home salary or net salary allows you to plan future spending, as it is directly dependent on income.
• You can estimate your net monthly savings on the basis of in-hand salary.
• Also, allows you to identify the best investment options that can be included in your portfolio.