How do salary calculators work?
Allcalculator.net's salary calculator to determine the take-home salary, you must enter the CTC bonus, PF, professional tax, deductions etc.
Example:
Assume your CTC is Rs 5 lakh. The employer gives you a bonus of Rs 50,000 for the financial year.
Your total gross salary = Rs 5, 00,000 – Rs 50,000 = Rs 4, 50,000
The steps to calculate are shown below:
- The gross Salary tends to deduct the professional tax of Rs 2,400 a year
- It deducts the contributions towards the Employee Provident Fund (EPF) made by both the employer and the employee.
- EPF contribution is calculated on a maximum salary limit of Rs 15,000 per month.
- Consider the yearly contribution of Rs 21,600 towards the EPF, made by the employee and the employer towards EPF
- Assume the employee has a yearly deduction of Rs 2,000 towards certain employee insurance
Total Deductions = Professional tax + EPF (Employee Contribution) + EPF (Employer Contribution) + Employee Insurance
Total deductions = Rs 2400 + Rs 21,600 + Rs 21,600 + Rs 2000 = Rs 47,600
Take-home salary = Gross Pay – Total Deductions
Take home salary = Rs 4, 50,000 – Rs 47,600 = Rs 4, 02,400
What are the benefits of using a salary calculator?
Make use of this Allcalculator.net's salary calculator as this gives you many benefits, as shown below:
- Quick results
- Identifies changes
- Clear bifurcation
- Availing estimation
Mention some of the formulas for salary calculation!
Take Home salary = Gross Salary – Income Tax – Employee's PF contribution – Prof.Tax.
Gross Salary = Cost to Company – Employer’s PF contribution – Gratuity
Gratuity = (Basic salary + Dearness allowance) x 15/26 x No. Of years of service.
Taxable Income = Gross Salary – Employee's PF contribution/PPF investment – Tax-Free allowance – HRA – LTA- Medical Insurance – Tax. Saving Investments – Other deductions.
