1. What is In-Hand Salary?

In-Hand Salary is the actual amount an employee receives after all deductions from the gross salary. It includes the base salary plus any variable pay components, minus taxes and other mandatory deductions.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( \text{Gross Salary} \) — Base salary before deductions (INR/year)
• \( \text{Variable Pay} \) — Performance bonuses or incentives (INR/year)
• \( \text{Income Tax} \) — Tax deducted at source (INR)
• \( \text{Provident Fund} \) — Employee's PF contribution (INR)
• \( \text{Professional Tax} \) — State professional tax (INR)

Explanation: The formula accounts for all components of compensation and mandatory deductions to calculate net take-home pay.

3. Importance of Salary Calculation

Details: Accurate salary calculation helps employees understand their compensation structure, plan finances, and verify payroll accuracy.

4. Using the Calculator

Tips: Enter all amounts in INR. Gross salary and variable pay should be annual figures, while deductions can be either monthly or annual (consistent units).

5. Frequently Asked Questions (FAQ)

Q1: What's included in variable pay?
A: Variable pay typically includes performance bonuses, incentives, commissions, or any non-fixed compensation components.

Q2: How is income tax calculated?
A: Income tax is calculated based on your tax slab. This calculator assumes you know your total annual tax liability.

Q3: What's the typical PF contribution?
A: In India, EPF contribution is typically 12% of basic salary, but this calculator lets you input your actual amount.

Q4: Is professional tax the same across India?
A: No, professional tax varies by state in India, with different slabs and maximum limits.

Q5: Does this include other deductions like health insurance?
A: No, this calculator covers basic deductions. For comprehensive calculations, include other deductions separately.