Free payroll tool
Salary calculator: gross salary to take-home pay
Enter the monthly salary components to see PF, ESI, professional tax and TDS, the net take-home pay, and what the employee costs the employer each month and year.
How take-home salary is worked out
Take-home pay starts with gross salary, which is every earning paid for the month. The employer then deducts the employee's share of PF and ESI, professional tax and income tax (TDS). What is left is credited to the bank account.
The employer's own PF and ESI contributions are paid on top of gross salary, not taken from it.
Worked example
Worked example: the calculator's default figures
An employee earns basic ₹30,000, HRA ₹15,000, special allowance ₹12,000 and other allowances ₹3,000 a month, with no DA or bonus. Gross salary is ₹60,000.
- PF is restricted to the ₹15,000 ceiling: 12% × ₹15,000 = ₹1,800.
- ESI does not apply, because gross salary is above ₹21,000.
- Professional tax is ₹200.
- TDS: annual salary of ₹7,20,000 less the ₹75,000 standard deduction leaves taxable income of ₹6,45,000. Slab tax is ₹12,250 (5% of ₹2,45,000), and the rebate cancels all of it, so TDS is ₹0.
Net take-home = ₹60,000 − ₹1,800 − ₹200 − ₹0 = ₹58,000 a month, or ₹6,96,000 a year.
The employer adds its own ₹1,800 PF: ₹1,250 to the pension scheme (8.33% of ₹15,000, rounded) and ₹550 to EPF. Cost to employer is ₹61,800 a month, or ₹7,41,600 a year.
The deductions, one by one
Provident fund
PF is 12% of basic + DA. HRA and other allowances are not included. When basic + DA is above ₹15,000, many employers restrict PF to the ₹15,000 wage ceiling (₹1,800 a month); contributing on the full amount is optional. Untick the restriction to see PF on full basic + DA.
The employer's matching 12% is split: 8.33% of wages up to ₹15,000 goes to the Employees' Pension Scheme (at most ₹1,250 a month) and the balance goes to EPF. The PF calculator also shows EDLI and admin charges.
ESI
In establishments covered by ESIC, employees with gross wages of ₹21,000 a month or less (₹25,000 for persons with disability) pay 0.75% and the employer pays 3.25%. On a gross of ₹20,000 that is ₹150 from the employee and ₹650 from the employer. Try it with the ESI calculator.
Professional tax
Professional tax is levied by states and cannot exceed ₹2,500 a year. Several states charge up to ₹200 a month and some levy none, so treat the ₹200 default as a starting point.
TDS
The estimate assumes this month's gross is paid all year and applies the new-regime slabs announced in Budget 2025: the ₹75,000 standard deduction, the Section 87A rebate up to ₹12 lakh of taxable income and 4% cess. Section 87A is the Income-tax Act, 1961 reference; the Income-tax Act, 2025, in force from 1 April 2026, renumbers sections. Confirm the rates for the current year.
If the employee has chosen the old regime or has other income, enter the monthly TDS yourself or work it out with the salary TDS calculator.
What this calculator leaves out
- EDLI (0.5% of wages up to ₹15,000) and EPF admin charges (0.5%), which the employer pays on top.
- Loss of pay for absent days. Enter the amounts actually earned for the month.
- State-wise professional tax slabs, and months where the amount differs.
- Old-regime tax, other income, gratuity provision, annual bonus and reimbursements.
- The ESI rule that employees with an average daily wage up to ₹176 do not pay their share (the employer still does).
- The wage definition under the Code on Wages. If excluded allowances exceed 50% of total pay, the excess is added back to wages, which can raise PF. The labour codes are in force but rules are still being notified, so check your state's position.
In Swastik Payroll, these figures come out of the monthly salary run. Paid days come from attendance, PF and ESIC are worked out for each employee, and TDS is recorded as a deduction on the payslip. The software does not compute income tax. Components such as HRA and special allowance are set up once in salary structures.
Frequently asked questions
Is PF calculated on gross salary or on basic salary?
On basic + DA (and retaining allowance, if any), not on HRA or other allowances. The 12% is often worked out on a maximum of ₹15,000, which gives ₹1,800 a month.
Why does the calculator show TDS as zero?
Under the new-regime rates from Budget 2025, the rebate removes all tax when taxable income is ₹12 lakh or less. With the ₹75,000 standard deduction, a salary of up to ₹12,75,000 a year, about ₹1,06,250 a month, carries no tax if there is no other income.
Is the employer's PF contribution part of take-home pay?
No. It goes into the employee's PF and pension accounts, not the bank account. It is part of CTC, which is why take-home pay is always lower than CTC divided by twelve. The CTC to in-hand calculator works from the other direction.
What is the difference between gross salary, net salary and CTC?
Gross salary is the total of earnings before deductions. Net salary is what the employee receives after deductions. CTC adds employer-side costs such as employer PF, gratuity and variable pay. Our guide to CTC, gross and net salary goes through each.
Does ESI stop as soon as salary crosses ₹21,000?
No. An employee who crosses the ceiling during a contribution period (1 April to 30 September, or 1 October to 31 March) stays covered until that period ends. This calculator only checks the current month's gross.
Results are estimates for planning. Statutory rates, ceilings and tax rules change; check the current notifications or consult your CA before using a figure for payroll or tax filing.
Related tools and guides
CTC to In-Hand Calculator
Annual CTC to monthly in-hand salary.
Salary TDS Calculator
Monthly TDS under both regimes.
PF Calculator
EPF, EPS and EDLI split per month.
ESI Calculator
Eligibility and ESIC contribution.
Payslip Generator
Printable salary slip in minutes.
How to Calculate Salary
Per-day rate to net pay, step by step.
Stop calculating payroll by hand
Swastik Payroll applies these rules to every employee automatically, straight from attendance, and produces payslips and PF/ESIC files.