About the Salary Calculator

What it does

Converts gross pay to net pay and vice versa. Breaks down deductions such as income tax, social security, provident fund, and other mandatory or optional contributions. It shows take-home salary, annual equivalents, and effective tax rate.

Why it matters

• Lets employees see actual take-home after all statutory deductions.
• Helps compare job offers, benefits, or different salary structures.
• Assists HR and payroll staff in quick what-if simulations.

Fields in this calculator

• Gross Salary: Total compensation before deductions. May include base pay plus allowances.
• Basic Pay: Core component used to compute provident fund or pension deductions.
• Allowances (optional): e.g., house rent, medical, transport — may be fully or partly taxable.
• Tax Year: Determines slab structure per finance act or jurisdiction.
• Income Tax (%) or Slabs: Progressive or flat rates used to compute total tax.
• Provident Fund (%): Employee contribution (often 10% of basic) and employer match if applicable.
• Social Security / EOBI / Pension (%): Deductions applied to basic or gross depending on law.
• Other Deductions (optional): Insurance, loan repayments, union dues, etc.
• Bonuses / Commission / Overtime (optional): Additional taxable income.

Computation steps

1. Determine gross income (monthly or annual).
2. Apply income-tax slabs:
     For each slab: tax += (income_in_slab × rate)
3. Apply other deductions:
     provident = basic × pf_rate
     pension   = basic × pension_rate
     eobi      = fixed or % of wage
     insurance = as given
4. Total deductions = tax + statutory + other
5. Net pay = gross − total deductions
6. Effective tax rate = (total tax / gross) × 100
7. Annualization:
     net_annual = net_monthly × 12
      

Outputs

• Net monthly pay: Take-home after all deductions.
• Annual net pay: Yearly take-home.
• Total deductions: Sum of all withheld amounts.
• Effective tax rate: % of gross going to taxes.
• Employer cost