1. What is In-Hand Salary?

In-Hand Salary is the actual amount an employee receives after all deductions like income tax, provident fund (PF), and professional tax have been subtracted from the gross salary.

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 — Employee's contribution to Provident Fund
• Professional Tax — State-level tax on employment

Explanation: This calculation provides the net amount the employee will receive in their bank account.

3. Importance of Salary Calculation

Details: Understanding your in-hand salary helps in financial planning, budgeting, and comparing job offers. It's crucial to know your take-home pay rather than just the gross salary figure.

4. Using the Calculator

Tips: Enter all amounts in INR (Indian Rupees). Ensure you have accurate figures for all deductions to get a precise calculation of your in-hand salary.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between gross and in-hand salary?
A: Gross salary is your total earnings 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, loan repayments, or other benefits which would further reduce your in-hand salary.

Q3: How is professional tax calculated?
A: Professional tax varies by state in India and is typically a few hundred rupees per month, with an annual cap.

Q4: Is PF contribution fixed?
A: Typically, PF is 12% of basic salary, but this can vary based on company policy and employee choice.

Q5: Why use this Jupiter tool specifically?
A: The Jupiter tool is designed for accurate salary calculations in the Indian context, accounting for common deductions in the Indian payroll system.