Salary Formula:
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The 7th Central Pay Commission (CPC) salary structure includes Basic Pay, Dearness Allowance (DA), House Rent Allowance (HRA), and other allowances. Deductions include Income Tax, Provident Fund (PF), and National Pension System (NPS).
The calculator uses the following formula:
Where:
Details: Accurate salary calculation helps in financial planning, loan applications, and understanding take-home pay after all deductions.
Tips: Enter all amounts in INR. Basic Pay should be the annual amount from the 7th CPC table. Deductions should be the actual or estimated amounts.
Q1: How is DA calculated?
A: DA is a percentage of basic pay revised quarterly based on inflation indices (currently __% as of __).
Q2: What are the HRA rates?
A: HRA is city-dependent: 27% for X cities, 18% for Y cities, 9% for Z cities of basic pay.
Q3: Is PF contribution mandatory?
A: Yes, 12% of basic pay + DA is deducted as employee's PF contribution.
Q4: How is income tax calculated?
A: Based on income slabs under the old or new tax regime as chosen by employee.
Q5: Can this calculator be used for pension calculation?
A: No, this calculates only in-hand salary for serving employees.