Take-home Salary Calculator (India)

How take-home salary is computed in India

Take-home salary is the amount that lands in your bank account every month after statutory deductions. The standard Indian deductions are:

• Employee Provident Fund (EPF): 12% of Basic + DA, capped at ₹1,800/month for most employees (basic wage cap of ₹15,000).
• Employees' State Insurance (ESI): 0.75% of gross, applicable when gross wage is ₹21,000/month or less.
• Professional Tax (PT): state-level tax, capped at ₹2,500/year under Article 276 of the Constitution. Slabs vary by state.
• Tax Deducted at Source (TDS): monthly TDS deduction based on your projected annual tax liability under Section 192 of the Income Tax Act.

What is gross salary vs take-home

Gross salary = Basic + HRA + special allowances + other taxable monthly components, before any deductions. Take-home (also called net salary) = Gross − all deductions. CTC is broader still — it includes employer contributions (PF, gratuity provision, insurance) that don't show up in either gross or take-home.

Why Basic % matters

Most Indian salary structures set Basic at 40–50% of monthly gross. A higher Basic means higher PF deduction (which reduces take-home) but also higher employer PF contribution and gratuity provision (which raise CTC). Statutory rules (notably the Code on Wages) push Basic to be a meaningful share of total wages rather than a token amount.

Old vs new tax regime

India offers two tax regimes. The new regime has lower slab rates but disallows most exemptions (HRA, 80C, 80D, etc.). The old regime is higher-rate but allows deductions. Your TDS depends on which regime you elect at the start of the financial year. Most salaried employees compare both regimes before deciding.

Frequently asked questions

How is take-home different from CTC?

CTC includes everything the employer spends on you — including employer PF (12% of Basic), employer ESI, gratuity provision (~4.81% of Basic), insurance premia, and sometimes joining bonus and stock. Take-home is just what you receive in your bank each month after employee deductions.

Is PF mandatory?

Yes, for establishments with 20+ employees. Employees earning Basic + DA above ₹15,000/month can opt out only at the time of joining (with employer agreement) and only if they have not already contributed to EPF previously.

How is TDS calculated?

Your projected annual tax liability is divided by 12 (or remaining months in the FY) and deducted monthly. Investment declarations and proofs adjust this through the year. A balancing amount is deducted in February/March.

Why does take-home change across states?

Professional Tax slabs vary by state. Maharashtra and Karnataka have different slabs; states like UP, Punjab, and Delhi don't levy PT at all.