💼 Payroll
🆓 Free
🇮🇳 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
📄 Monthly Salary Slip
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 |
|---|
📐 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
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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.