In-Hand Salary Calculator

Indian Salary Calculator User Guide

Overview

The Indian Salary Calculator is a comprehensive tool designed to help calculate salary breakdowns based on the annual CTC (Cost to Company). It automatically computes various components including basic salary, HRA, allowances, and statutory deductions like EPF and ESIC.

Key Features

• Automatic calculation of salary components based on annual CTC
• Customizable components and deductions
• Real-time updates
• Indian number format display
• Separate sections for employee and employer contributions

Basic Usage

1. Enter Annual CTC

• Locate the “Annual CTC” input field at the top of the calculator
• Enter your total annual CTC amount in INR
• The calculator will automatically update all components

2. Understanding Default Components

The calculator automatically computes these standard components:

• Basic Salary: 50% of monthly CTC
• HRA (House Rent Allowance): 40% of Basic Salary
• Special Allowances: Automatically calculated based on remaining CTC after other deductions

3. Statutory Deductions

Employee Contributions:

• EPF: 12% of Basic Salary (capped at ₹15,000)
• ESIC: 0.75% of Gross Salary (applicable if monthly gross salary ≤ ₹21,000)
• LWF: Customizable monthly amount

Employer Contributions:

• EPF: 12% of Basic Salary (capped at ₹15,000)
• ESIC: 3.25% of Gross Salary (applicable if monthly gross salary ≤ ₹21,000)
• LWF: Customizable monthly amount

Advanced Features

1. Adding Custom Components

1. Click the “Add Component” button below the standard components
2. Enter the component name
3. Input the monthly amount
4. The annual amount will calculate automatically
5. To remove, click the “✖” button

2. Adding Custom Deductions

1. Navigate to either “Employee Contributions” or “Employer Contributions” section
2. Click “Add Deduction” or “Add Contribution” respectively
3. Enter the deduction/contribution name
4. Input the monthly amount
5. The annual amount will calculate automatically
6. To remove, click the “✖” button

3. Customizing LWF

• Both employee and employer LWF can be customized
• Enter the monthly amount in the respective input fields
• Annual amounts will update automatically

Understanding the Results

1. Gross Salary

• Sum of Basic Salary, HRA, Special Allowances, and any custom components
• Displayed in both monthly and annual amounts

2. Take Home Salary

• Calculated after deducting all employee contributions from Gross Salary
• Includes:
• EPF deduction
• ESIC deduction (if applicable)
• LWF deduction
• Any custom deductions added

Important Notes

1. EPF Calculation:

• Based on Basic Salary with a cap of ₹15,000
• Even if Basic Salary exceeds ₹15,000, EPF is calculated on ₹15,000

2. ESIC Applicability:

• Only applies if monthly gross salary is ₹21,000 or less
• Automatically calculated when applicable

3. Special Allowances:

• Automatically adjusted based on CTC and other components
• Ensures total compensation matches entered CTC

4. Custom Components:

• All amounts should be entered as monthly values
• Annual values are calculated automatically
• Can be added or removed at any time

Troubleshooting

1. If numbers appear incorrect:

• Verify the Annual CTC input
• Check any custom component amounts
• Ensure all numerical inputs contain valid numbers

2. If Special Allowance shows zero:

• This may be correct if other components and contributions consume the entire CTC
• Check custom components and deductions

3. If Take Home Salary seems low:

• Verify all custom deductions
• Check if ESIC is applicable (for salaries ≤ ₹21,000)
• Review LWF and custom deduction amounts

Best Practices

1. Enter accurate Annual CTC for precise calculations
2. Review all statutory deductions for compliance
3. Use custom components for organization-specific allowances
4. Verify calculations match your organization’s policies
5. Keep track of any custom components added for future reference

You May Try Also :

• Overtime Calculator
• Timesheet Calculator
• EPF & EPS Contribution Calculator