1. What is In-Hand Salary Calculation?

The in-hand salary calculation determines the actual amount an employee receives after all deductions. For Indian government employees, major deductions include income tax, provident fund (PF), and professional tax.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Total salary before any deductions
• Income Tax — Tax deducted as per income tax slabs
• PF — Provident Fund contribution (typically 12% of basic salary)
• Professional Tax — State-specific tax deducted from salary

Explanation: This formula accounts for the mandatory deductions applicable to Indian government employees.

3. Importance of Salary Calculation

Details: Accurate salary calculation helps employees understand their net earnings, plan finances, and verify payroll deductions.

4. Using the Calculator

Tips: Enter all amounts in INR. For accurate results, use actual deduction values from your payslip. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's included in gross salary?
A: Gross salary includes basic pay, dearness allowance, house rent allowance, and other allowances before any deductions.

Q2: How is income tax calculated?
A: Income tax is calculated based on applicable tax slabs and deductions under the Income Tax Act.

Q3: Is PF contribution fixed?
A: For government employees, PF is typically 12% of basic pay, but may vary based on specific schemes.

Q4: Does professional tax vary?
A: Yes, professional tax rates vary by state in India, with maximum typically ₹2,500/year.

Q5: Are there other deductions?
A: This calculator covers major deductions. Other deductions like insurance, loans, etc. would further reduce in-hand salary.