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All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
Enter a monthly gross and see the whole structure: basic, statutory deductions on both sides, take-home before income tax, and what the employee actually costs.
A salary has three different totals and they are routinely confused. Gross is everything earned before deduction. Take-home is gross minus the employee's own statutory contributions. Cost to company is gross plus the employer's contributions, higher than gross, and never an amount anyone receives.
This calculator produces all three from one figure, along with the provident fund and ESI lines that sit between them.
Enter your figures, then press Calculate
Your 3 inputs become a full breakdown, with every step of the working shown beneath the headline figures.
Every line of a CTC breakdown, in the order a payslip presents it. The arithmetic is ordinary; the part worth reading is which components sit inside which base.
Take-home = Gross − (12% × PF base) − (0.75% × Gross, where ESI applies)
Basic (with dearness allowance where it applies) is the share of gross you set. It is the figure provident fund and gratuity are both computed on.
Where the ₹15,000 statutory wage ceiling is applied, the provident fund base is the lower of basic and ₹15,000. Without the cap, it is full basic.
The employee contributes 12% of the PF base. The employer contributes 12% as well, of which 8.33% (capped at the ceiling) is diverted to the pension scheme and the remainder to provident fund.
Where monthly gross is ₹21,000 or less, the employee contributes 0.75% and the employer 3.25% of gross.
PF lines are rounded to the nearest rupee and ESI lines up to the next rupee, as EPFO and ESIC require, and totals sum the rounded parts, which is how a payslip is actually produced.
What this does not include
Asked often enough about this calculation to be worth answering beside it.
Because the employer's own statutory contributions sit on top of gross rather than inside it. The 12% provident fund contribution and, where applicable, the 3.25% ESI contribution are the employer's cost and do not reduce the employee's take-home. That money belongs to the employee, but it goes to their provident fund and ESI account rather than their bank.
Both are permitted. Capping at the statutory wage ceiling reduces the contribution on both sides for anyone whose basic exceeds ₹15,000; contributing on full basic increases the employee's retirement corpus and the employer's cost. It is a policy decision, applied consistently across the organisation, and it is configurable in HRMagix.
Provident fund is computed on basic rather than on gross. A higher basic means a larger PF base, a larger deduction and therefore a lower take-home, while increasing what accumulates in the provident fund and, at exit, the gratuity computed on last drawn basic.
No. Income tax under Section 192 depends on the employee's choice between the old and new regimes and on their verified declarations, so the figure shown is take-home before income tax.
No. Professional Tax and Labour Welfare Fund are state subjects with different slabs, exemptions and periodicity in each state, so neither is included.
Only where monthly gross is ₹21,000 or less. In that case the employee contributes 0.75% and the employer 3.25% of gross; above it, both ESI lines show as not applicable.
Enter the share your salary structure actually uses. Most Indian structures set basic between 40% and 50% of gross, and the calculator defaults to 50%.
PF lines are rounded to the nearest rupee and ESI lines up to the next rupee, as EPFO and ESIC require, and totals sum the rounded parts, which is how a payslip is actually produced.
A calculator applies a rule to figures you type in. A payroll run applies it to your actual employee record, your locations and your verified declarations, which is where Professional Tax, LWF and TDS also resolve.
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