In Hand Salary Calculator
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In-hand Salary Calculator
There's one day in every month when employees get a little happiness. It is when they have their salary credited to the accounts. When you join a company, the HR or the employer generally walks you through your salary package which includes your in-hand salary, bonus and other components. For newbies, calculating in-hand salary from the entire package often becomes a daunting task. In such cases, in hand salary calculator can be of great help.
Let's dive into what in hand salary calculator India is all about.
About In Hand Salary Calculator 2024-25
An employee's salary slip is divided into two parts: income/earnings and deductions. In the income part, you will get components such as basic salary, special allowances and house rent allowance (HRA). Furthermore, the income part has components like reimbursements, performance bonuses, and variable pay.
The second part includes deductions like provident fund (PF), professional tax and gratuity.
Since these details can be a little tricky for a salaried individual to construct an idea regarding in-hand salary, using a monthly in hand salary calculator india can make the process simpler. With an in-hand salary calculator, you will be able to calculate the total income that you will obtain after all deductions.
What is a Salary Calculator?
In times when someone asks about your current CTC or in-hand salary, you can use a monthly salary calculator to calculate the desired component. You have to provide your CTC and a few additional details. Depending on these inputs, you can get an estimate of your take-home salary or in-hand salary.
How to calculate in hand salary from CTC?
How to calculate in hand salary from CTC? Here are the simple steps to follow:
1. Use a take home calculator or salary calculator for this process.
2. Enter details like your CTC bonus, professional tax, PF, other deductions, etc.
To understand this calculation, let's assume your annual CTC is INR 5 lakh. For the particular financial year, the employer is offering you a bonus of INR 50,000.
To calculate in hand salary from CTC, you have to subtract the bonus from CTC, which means your gross salary will be INR (5,00,000-50,000) = INR 4,50,000.
Gross salary is basically the amount you get after different kinds of deductions.
1. So, let's say, your gross salary will deduct professional tax of around INR 2,400.
2. It also deducts the EPF or Employee Provident Fund which is a fund contributed by both employer and employee.
3. If you have a maximum salary limit of INR 15,000, your EPF will be calculated, which will be 12% of 15,000. The result will be INR 21,600 p.a.
4. You can further assume that an INR 2,000 deduction is also made for employee insurance.
Now, with the help of gross to net salary calculator, you can calculate your total deductions.
It will be INR (2,400+21,600 (employee contribution)+ 21,600 (employer contribution)+ 2,000) = INR 47,600.
Finally, your take-home salary or in-hand salary will be Gross Salary -Total Deductions, i.e. INR (4,50,000- 47,600) = INR 4,02,400.
If you find this math difficult, you can use the take home salary calculator India.
Different Components of Take Home Pay Calculator
Basic Pay
40-50% of the CTC is your basic pay. Depending on this amount, further deductions may take place.HRA or House Rent Allowance
This allowance is often given to employees which helps them pay their house rent. If you don't live in a rented space, this amount will be completely taxable.Special Allowance
It is the allowance or amount of money that employees receive to meet other expenses like internet subscriptions, food, desktop/PCs, etc.Bonus
Employers give money to employees based on their performance at the end of the year.Professional Tax
It is the direct tax that salaried individuals pay as set by the State Government against their professional services. This tax differs from one state to another.Gratuity
When you leave a company after 5 years of service or retire from the same, you receive this employee benefit. This is the amount of money that is drawn from your CTC and is kept in the gratuity fund. Based on an employee’s last withdrawn salary, the final gratuity is calculated.EPF or Employee Provident Fund
The Central Government has initiated this saving scheme which ensures employees have enough funds during and after their retirement. 12% of your basic pay goes to the EPF fund. Furthermore, the employer must make a similar contribution. Currently, 8.1% of returns are granted on EPFs.Gross Salary Vs CTC
Gross pay is the amount you receive after tax deductions and before the gratuity and EPF contributions.CTC is the Company's cost which includes basic pay and other direct and indirect employee benefits.
Take-Home Salary or In-hand Salary
It is the amount that you will receive after all deductions have been made from the gross pay.How to Use Grapevine's Net Salary Calculator?
There are many net salary calculator india which can help you calculate your net salary. Grapevine's net salary calculator comes in handy in such cases.
To use the net salary calculator of Grapevine, follow these steps:
1. Enter your CTC
2. Now, enter your bonus, which is the variable.
3. Provide your basic pay (40-50% of the CTC).
4. The net pay calculator will now show your net salary.