1. What is Salary Computation?

Salary computation involves calculating the take-home pay by deducting various taxes and contributions from the gross salary. In India, the main deductions are income tax, provident fund (PF), and professional tax.

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 income tax slabs
• PF — Employee's contribution to Provident Fund (typically 12% of basic salary)
• Professional Tax — State-specific tax deducted from salary

Explanation: The calculation provides the net amount an employee receives after all statutory deductions.

3. Importance of Salary Calculation

Details: Accurate salary computation helps employees understand their take-home pay and plan their finances accordingly. It also ensures compliance with tax laws and labor regulations.

4. Using the Calculator

Tips: Enter your annual gross salary, estimated income tax as per 2025 slabs, PF contribution, and professional tax. All values must be in INR.

5. Frequently Asked Questions (FAQ)

Q1: What is 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?
A: Income tax is calculated based on 2025 tax slabs which consider your income level and applicable deductions.

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: What is professional tax?
A: Professional tax is a state-level tax deducted from salaried individuals, with amounts varying by state (typically ₹200-₹2,500 per year).

Q5: Are there other deductions not included here?
A: This calculator covers major deductions, but some organizations may have additional deductions like insurance premiums or loan recoveries.