1. What is Monthly In-Hand Salary?

The monthly in-hand salary is the actual amount an employee receives after all deductions like income tax, provident fund (PF), professional tax, etc. It represents the net amount credited to your bank account each month.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Total annual salary before any deductions
• Income Tax — Tax calculated as per 2025-26 tax slabs
• PF — Provident Fund contribution (typically 12% of basic salary)
• Professional Tax — State-specific tax deducted from salary

Explanation: The calculator divides the net annual salary (after all deductions) by 12 to get the monthly in-hand amount.

3. Importance of Salary Calculation

Details: Understanding your in-hand salary helps in financial planning, budgeting, loan applications, and tax planning. It gives a clear picture of your actual take-home pay.

4. Using the Calculator

Tips: Enter your gross annual salary and all applicable deductions. Ensure all values are accurate for precise calculation. The calculator uses the latest 2025-26 tax slabs.

5. Frequently Asked Questions (FAQ)

Q1: What's included in gross salary?
A: Gross salary includes basic pay, allowances (HRA, DA, etc.), bonuses, and other benefits before any deductions.

Q2: How is income tax calculated for 2025-26?
A: Income tax is calculated based on the applicable tax slabs for the financial year 2025-26, considering deductions under sections like 80C, 80D, etc.

Q3: Is PF contribution mandatory?
A: For organizations with 20+ employees, PF contribution (12% of basic salary) is mandatory for employees earning up to ₹15,000 basic salary.

Q4: Does professional tax vary by state?
A: Yes, professional tax rates vary across different Indian states, with maximum typically being ₹2,500 per year.

Q5: Are there other deductions not considered here?
A: This calculator covers major deductions. Other possible deductions include ESIC, meal coupons, insurance premiums, or loan recoveries.