Salary Calculator

Calculate your Salary in minutes with Registrationwala’s Gross to Net Salary Calculator Online! 

What is a Salary Calculator?

A salary slip calculator is an online calculator that allows individuals to get an estimate of their “take-home” income by calculating their total earnings after deduction of professional tax, provident fund employee/employer contributions, and other applicable deductions.

What are the Key Salary Components in India?

The key components of salary in India are as follows:

• Basic salary: The employee's basic pay is between 40% and 50% of the total income. The company pays for the employee's expertise, experience, and qualifications. One fixed component of the CTC (Cost To Company) package is the basic pay.

• Bonus: The employee may receive a bonus from the employer as a performance incentive. It is fully taxable in the employee's hands and is included in the gross salary.

• Contribution made by employees to the provident fund: Each month, 12% of the employee's base income is contributed to the employee provident fund by both the company and the employee.

• Professional Tax: The states in India levy a professional tax on employment. The most professional tax that the state may impose is Rs 2,500 in a calendar year.

How to use Registrationwala’s Salary Calculator?

To use Registrationwala’s monthly salary calculator India, follow these steps:

Step 1: Enter the annual Cost to Company (CTC).

Step 2: Enter bonus amount included in CTC.

Step 3: Now, enter monthly deductions like Professional Tax, Employer PF, Employee Insurance and Employee PF. 

Step 4: You can click “Add Deduction” and add additional deductions, if required.

Step 5: Based on the entered details, our salary deduction calculator will reflect the salary amount.

Formula for Salary Calculation

The formula for calculating base salary is as follows:

• Basic Salary = Gross Income - Total Allowance (like Bonuses, Dearness Allowance (DA), House Rent Allowance (HRA), Medical insurance, and Conveyance.) 
• Basic Salary = 10,00,000 
• Here is an example using the Salary calculation formula. A girl called Sita’s salary details are as follows:
• Gross Income: Rs. 80,000
• Bonuses: Rs. 10,000
• Dearness Allowance (DA): Rs. 5,000
• House Rent Allowance (HRA): Rs. 15,000
• Medical Insurance: Rs. 3,000
• Conveyance: Rs. 2,000

Total Allowance Calculation

The total allowance calculation for Sita is as follows:

• Total Allowance: Bonuses + DA + HRA + Medical Insurance + Conveyance

• Total Allowance: Rs. 10,000 + Rs. 5,000 + Rs. 15,000 + Rs. 3,000 + Rs. 2,000

• Total Allowance: Rs. 35,000

Base Salary Calculation

The base income calculation for Sita is as follows:

• Basic Salary: Gross Salary - Total Allowance

• Basic Salary: Rs. 80,000 - Rs. 35,000

• Basic Salary: Rs. 45,000

So, the Basic Pay Sita is Rs. 45,000.

Frequently Asked Questions

Q1. What is the base salary formula?

A. Base Salary Formula = Gross Pay - Total Allowances (Bonuses, HRA, LTA, medical insurance, dearness allowance, etc.)

Q2. What are the salary structure’s main components?

A. The main components of the salary structure are base salary, HRA, LTA, special allowance, bonus, professional tax, contribution to EPF, etc.

Q3. How to use an income tax salary calculator?

A. To use the income tax salary calculator, you must enter your salary details, deductions, and tax. After entering the details, the calculator will estimate your taxable income.

Q4. Does the CTC calculator consider and calculate the tax deduction?

A. Yes, if you use our CTC calculator, it’ll consider and calculate the professional tax deduction to determine the net tax payable and take-home income.

Disclaimer: The salary calculator of Registrationwala is for informational purposes only and should not be considered financial/legal advice. The users are strongly advised to consult a professional before making any financial decisions based on the calculations. In case of any errors, Registrationwala does not take any responsibility.