Salary Calculator

CTC — Cost to Company — is what your employer spends. It includes employer PF contribution (12% of basic), gratuity accrual (~4.81% of basic), and sometimes group medical/life insurance. These never hit your bank account. From your Gross Salary (CTC minus employer PF and gratuity), employee PF, professional tax, and TDS are further deducted. In-hand is typically 70-80% of CTC.

At ₹10L CTC: roughly 80-85% in-hand (~₹8-8.5L). At ₹25L CTC: 70-75% (~₹17.5-18.75L). At ₹50L CTC: 60-65% (~₹30-32.5L, surcharge kicks in). Higher salaries have lower in-hand % because of progressive tax rates.

Negotiate for lower Basic + higher HRA (if renting, HRA is tax-exempt under old regime). Opt for food vouchers, phone reimbursement (partial exemption). Invest in NPS via employer (80CCD(2) unlimited deduction). Shift to new regime if deductions are minimal.

Yes — TDS becomes lower if new regime saves more tax (usually up to ₹12L). You can elect the regime with your employer at the start of the year, or switch at ITR time (salaried only).

Variable pay (10-30% of CTC) is performance-linked — paid annually or quarterly based on company/individual performance. Stock options (RSU/ESOP) are separate from cash CTC. Always ask for the "fixed" vs "variable" split — banks often lend based only on fixed portion.

Yes, if your basic salary is ≤ ₹15,000/month, it's mandatory under EPFO. Above ₹15,000, employers can offer voluntary PF (VPF). You can opt out once, but most don't — PF earns 8.25% tax-free with employer matching, effectively a 100% return on the employee contribution.

Yes. Professional Tax is a state-level tax on employment income. Maharashtra, Karnataka, West Bengal, Andhra Pradesh charge ~₹200/month for most earners. Some states (Delhi, UP, Haryana) don't levy it. The maximum is capped at ₹2,500/year by the Constitution.

Technically yes, as annual accrual (~4.81% of basic), but you only receive it when leaving after 5+ years of service. If you leave earlier, you get nothing. Max tax-free gratuity: ₹20 lakh (cumulative lifetime cap).

Basic affects PF (12%), gratuity, HRA (percentage of basic), and LTA — higher basic = higher retirement savings but lower immediate in-hand. For most salaried, 40-50% of CTC as basic is optimal. Too low (<30%) is flagged by tax authorities as structured to avoid TDS.

It's accurate for standard salary structures (basic + HRA + special allowance + PF + gratuity + tax). Variable pay, ESOPs, perquisites, and specific company components may vary. Always verify with your HR and Form 16.