1. What is the Salary Calculation Formula?

The salary calculation formula estimates your take-home pay by subtracting all mandatory deductions from your gross salary. This helps employees understand their actual in-hand salary.

2. How Does the Calculator Work?

The calculator uses the salary equation:

Where:

• \( \text{Gross Salary} \) — Total salary before any deductions (₹/year)
• \( \text{Income Tax} \) — Tax deducted as per income tax slabs (₹)
• \( \text{PF} \) — Employee's contribution to Provident Fund (₹)
• \( \text{Professional Tax} \) — State-mandated professional tax (₹)

Explanation: The equation accounts for all mandatory deductions from your gross salary to give you the actual amount you receive.

3. Importance of Salary Calculation

Details: Accurate salary calculation helps in financial planning, understanding deductions, and verifying employer calculations.

4. Using the Calculator

Tips: Enter your gross annual salary and all deduction amounts in INR. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the difference between gross and in-hand salary?
A: Gross salary is your total salary before deductions, while in-hand salary is what you actually receive after all deductions.

Q2: Are there other deductions not included here?
A: Yes, some companies may have additional deductions like health insurance, ESIC, or loan recoveries.

Q3: How is income tax calculated?
A: Income tax is calculated based on government-defined slabs and may vary based on your investments and tax-saving declarations.

Q4: Is professional tax the same across India?
A: No, professional tax varies by state and is typically a few hundred rupees per month.

Q5: Can I use this for monthly salary calculation?
A: Yes, just enter monthly figures and multiply the result by 12 for annual equivalent, or divide annual figures by 12 for monthly.