1. What is In-Hand Salary?

In-Hand Salary is the actual amount an employee receives after all deductions like income tax, provident fund, 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 as per 2025 tax brackets
• Provident Fund — Employee's PF contribution
• Professional Tax — State-mandated professional tax

Explanation: This calculation gives the net amount that will be credited to your bank account each month.

3. Importance of Salary Calculation

Details: Understanding your in-hand salary helps in financial planning, budgeting, and negotiating better compensation packages.

4. Using the Calculator

Tips: Enter all amounts in INR. For monthly figures, multiply by 12 to get annual amounts. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's included in gross salary?
A: Basic salary, HRA, allowances, bonuses, and other benefits before any deductions.

Q2: How is income tax calculated?
A: Based on 2025 tax slabs which consider your income level and applicable deductions.

Q3: Is provident fund mandatory?
A: For organizations with 20+ employees, EPF is mandatory for employees earning up to ₹15,000/month.

Q4: What's professional tax?
A: State-level tax on employment, typically ₹200-₹300/month depending on the state.

Q5: Are there other deductions?
A: This calculator covers major deductions. Others may include insurance, loan repayments, or voluntary contributions.