Payroll
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🇮🇳 India 2025
Payroll Calculator
Enter CTC or gross salary to get a complete India payroll breakdown - basic, HRA, allowances, employee PF, employer PF split (EPF + EPS), ESI, professional tax, and TDS under both New and Old Tax Regime. See total employer cost, generate a printable salary slip, and compare regimes to find which saves more tax.
India Payroll Calculator
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Monthly Take-Home Pay
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Run the calculator first to generate salary slip.
👥 Bulk Payroll Estimator
Quick estimate for multiple employees across salary bands.
| Annual CTC | Monthly Gross | Monthly PF | Monthly TDS | Take-Home/mo | Employer Cost/mo |
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India Payroll - How It Works
CTC Structure
CTC = Gross Salary + Employer PF + Employer ESI + Gratuity
Gross Salary = Basic + HRA + Special Allowance + Other
Basic Salary: typically 40–50% of CTC
HRA: typically 40–50% of Basic
(50% for metros, 40% for non-metros)
Special Allowance: balancing component
Employer PF = 12% of Basic
(goes to EPF account, part of CTC)
Employer ESI = 3.25% of Gross (if applicable)
Employee Deductions
Employee PF = 12% of Basic Salary
(minimum ₹1,800/month on capped ₹15,000 basic)
Employee ESI = 0.75% of Gross Salary
(only if gross salary up to ₹21,000/month)
Professional Tax: State-specific, up to ₹200/month
Maharashtra: ₹200/month (salary above ₹15,000)
Karnataka: ₹200/month (salary above ₹25,000)
TDS (Income Tax): As per applicable tax slab
Deducted monthly as TDS on salary
Tax Slabs (New Regime 2025–26)
Up to ₹3,00,000: NIL
₹3,00,001–7,00,000: 5%
₹7,00,001–10,00,000: 10%
₹10,00,001–12,00,000:15%
₹12,00,001–15,00,000:20%
Above ₹15,00,000: 30%
Standard deduction: ₹75,000 (new regime)
Tax rebate u/s 87A: Full rebate if income up to ₹7,00,000
(new regime) - zero tax!
Old Regime: Standard deduction ₹50,000
+ 80C up to ₹1.5L + HRA exemption + other deductions
Frequently Asked Questions
CTC (Cost to Company) is everything the employer spends on you: gross salary + employer PF (12% of basic) + employer ESI (3.25% of gross, if applicable) + gratuity provision (4.81% of basic). Take-home is your bank credit: Gross Salary minus employee PF (12% of basic), employee ESI (0.75%), professional tax, and TDS. For a typical ₹10L CTC, take-home is roughly ₹7–8L annually, depending on tax regime and deductions. CTC vs take-home can differ by 20–30%.
Employee PF = 12% of Basic Salary per month. Employer also contributes 12% of Basic, split as: 8.33% to EPS (Employees Pension Scheme, capped at ₹1,250/month on a ₹15,000 salary ceiling) and 3.67% to EPF. For basic ₹20,000: Employee PF = ₹2,400. Employer EPS = ₹1,250 (capped). Employer EPF = ₹1,150. Both employee and employer EPF contributions earn interest at 8.25% p.a. (FY2024-25) in the EPF account.
ESI (Employees State Insurance) applies when gross monthly salary is ₹21,000 or below. Employee contribution: 0.75% of gross salary. Employer contribution: 3.25% of gross. Benefits: health insurance for employee and family, sick pay (70% wages for 91 days/year), maternity benefit (26 weeks), disability and death benefits. Once gross crosses ₹21,000/month, you exit ESI coverage and typically get employer-sponsored health insurance instead.
Professional Tax is a state-level deduction. Maximum statutory limit: ₹2,500/year. States that levy it: Maharashtra (₹200/month for salary above ₹15,000), Karnataka (₹200/month above ₹25,000), West Bengal, Andhra Pradesh, Telangana, Tamil Nadu, Kerala, and others. States with no professional tax: Delhi, Gujarat, Rajasthan, Haryana, HP, UP. PT is allowed as a deduction under income tax (reduces taxable income by up to ₹2,400/year). Enter your state in the calculator to apply the correct PT.
New Regime is now the default and benefits most people with modest deductions. Old Regime is better if total deductions are large: 80C ₹1.5L + 80CCD(1B) ₹50K + HRA exemption + home loan interest ₹2L + 80D ₹25–50K. For a ₹10L gross salary: New Regime tax ≈ ₹54,600 (after ₹75K standard deduction). Old Regime with ₹4.5L deductions: tax ≈ ₹14,700. But at ₹10L with only standard deduction in Old Regime: ₹1,04,000 tax - New wins easily. Calculate both and choose the lower option.
TDS (Tax Deducted at Source) is the monthly advance income tax deduction from your salary by your employer. Your employer estimates your annual tax liability at the start of the year (using your Form 12BB declarations), divides by 12, and deducts monthly. It is deposited with the government on your behalf. When you file ITR, TDS is credited against your actual tax liability - you either get a refund (excess TDS) or pay the balance. Changing tax regime or underdeclaring investments causes year-end adjustment deductions (higher TDS in February/March).
Take-Home = Gross Salary − Employee PF − Employee ESI (if applicable) − Professional Tax − TDS. Example: Gross ₹50,000/month, Basic ₹20,000. Employee PF = ₹2,400. ESI = Not applicable (gross above ₹21,000). PT = ₹200 (Maharashtra). Annual TDS (New Regime on ₹6L gross − ₹75K std deduction = ₹5.25L taxable) = ₹18,750/year = ₹1,563/month. Take-Home = ₹50,000 − ₹2,400 − ₹200 − ₹1,563 = ₹45,837/month.
Employer cost = what the employer actually pays, including components that don't show up as your CTC. CTC usually includes: Gross salary + Employer PF + Gratuity provision. Additional real costs not always in CTC: employer ESI (if applicable), group health insurance premium, group term life premium, recruitment costs, training costs. For payroll budgeting: Employer Cost = Gross + Employer PF (12% of Basic) + Employer ESI (3.25% of Gross, if gross is ₹21K or below) + Gratuity (4.81% of Basic) = typically 115–120% of gross salary.
India Payroll Calculator - CTC, Take-Home Pay, PF and TDS Explained
Most Indian employees receive a CTC figure when they join a company but take home meaningfully less each month. Understanding the exact difference - and why - is essential for personal financial planning, negotiating offers, and ensuring your employer is deducting correctly. This calculator breaks down every component of an Indian salary and shows both what you receive and what your employer actually spends.
Quick example - ₹8L CTC with Basic 40%: Annual Basic = ₹3.2L. Employee PF = ₹3,200/month. Employer PF (EPF portion) = ₹1,150/month. Employer EPS = ₹1,250/month. Gratuity = ₹1,284/month. Gross salary = ₹8L minus employer PF and gratuity = approx ₹6.35L. Take-home after PF, PT and TDS (New Regime) ≈ ₹5.15–5.5L/year depending on tax.
CTC Components - What Goes Into India's Cost to Company
Gross Salary Components
- Basic Salary: Foundation of the CTC - typically 40–50%. PF and gratuity are calculated on this.
- HRA (House Rent Allowance): Typically 40–50% of Basic. Fully taxable unless you're renting (then partially exempt under Old Regime).
- Special Allowance: The balancing figure - fully taxable.
- Other allowances: Conveyance, medical, LTA - some have tax exemptions under Old Regime.
Employer Contributions (Not in Take-Home)
- Employer PF: 12% of Basic. Split: 8.33% to EPS (capped ₹1,250/month), 3.67% to EPF.
- Employer ESI: 3.25% of Gross (only when gross ≤ ₹21,000/month).
- Gratuity provision: 4.81% of Basic - set aside by employer, not paid monthly.
- These are part of CTC but never in your salary account.
Employee Deductions - What Comes Out of Your Gross Salary
- Employee PF: 12% of Basic Salary monthly. Deducted from your gross, deposited into EPF account. Earns interest at 8.25% p.a. (FY2024-25). Eligible for 80C deduction under Old Regime.
- Employee ESI: 0.75% of Gross Salary - only when gross is ₹21,000/month or less. Provides health insurance, sick pay, maternity benefit, and disability coverage.
- Professional Tax: State-level deduction. Maximum ₹2,500/year. Maharashtra: ₹200/month for salary above ₹15,000. Karnataka: ₹200/month for salary above ₹25,000. Not applicable in Delhi, Gujarat, Rajasthan, HP, UP.
- TDS (Tax Deducted at Source): Employer estimates your annual income tax, divides by 12, and deducts monthly. Can be under either Old or New Tax Regime depending on your declaration to employer (Form 12BB). Adjusted at year-end - if too much deducted, get a refund via ITR.
Old Regime vs New Regime - Which to Choose for TDS?
Declare your preferred tax regime to your employer at the start of the financial year. Your employer will deduct TDS accordingly. Key comparison for payroll purposes:
- New Regime (default from FY2023-24): Standard deduction ₹75,000 for salaried. Lower tax rates. No 80C, HRA, or most deductions allowed. Simple - just income minus standard deduction = taxable income.
- Old Regime: Standard deduction ₹50,000. HRA exemption, 80C up to ₹1.5L, home loan interest (24b) up to ₹2L, 80D medical insurance, NPS 80CCD(1B) ₹50K extra. Better if total deductions exceed approximately ₹3.75–5L depending on income level.
- Tip: Submit Form 12BB to your employer with investment declarations by mid-January each year for accurate TDS deduction. If you declare Old Regime but don't submit proof of investments, TDS may be recalculated higher in February/March to recover the year's deductions.
How this calculator works, and where the numbers come from
The Payroll Calculator applies the standard formula for this calculation to the values you enter and updates the result as you type. The calculation itself happens in your browser, and the page explains the method so you can check any result by hand.
Please note: Results are estimates based on the numbers you enter, not accounting or financial advice.
Sources and further reading
Learn more
Read our guide: Marginal vs Effective Tax Rate: Why a Raise Never Costs You