Salary Calculator 2025
Calculate your monthly in-hand salary based on your CTC. Updated for New Tax Regime FY 2024-25.
Income Details (Annual)
Your total Cost to Company
Exemptions like HRA, LTA etc. (if applicable)
Note: Calculated based on New Tax Regime (FY 2024-25) with Standard Deduction of ₹75,000.
Your Take Home
Monthly In-Hand Salary
₹0
(Approximate)
Decoding Your Salary Slip
Understanding your salary structure helps in tax planning and negotiation.
Components
- Earnings:
- Basic Pay: 40-50% of CTC. Fully taxable.
- HRA: Tax exemption available (Old Regime).
- Allowances: LTA, Medical, Food, Special Allowance.
- Deductions:
- PF: 12% of Basic. Long-term savings.
- Professional Tax: State tax (~₹200/month).
- TDS: Income Tax deducted at source.
New Tax Regime 2024-25 Impact
The New Tax Regime (default) offers:
- Lower Tax Rates: More immediate cash in hand for many.
- Simple Structure: No need to submit rent receipts or investment proofs.
- Higher Standard Deduction: Now ₹75,000.
Frequently Asked Questions
How is in-hand salary calculated?
In-hand salary = Gross Salary - (PF + Professional Tax + Income Tax/TDS). It is the actual amount credited to your bank account.
What is the difference between CTC and In-hand?
CTC (Cost to Company) includes all benefits like PF (employer share), gratuity, insurance, and variables. In-hand is only the monthly fixed part minus deductions.
What is the Standard Deduction for FY 2024-25?
For the New Tax Regime, the Standard Deduction has been increased to ₹75,000. For the Old Regime, it remains ₹50,000.
Is Professional Tax mandatory?
Yes, Professional Tax is a state-level tax (max ₹2,500/year) deducted mandatorily in states like Maharashtra, Karnataka, Telangana, etc.
How can I increase my in-hand salary?
You can opt for reimbursements like Food Allowance, LTA, or Internet Allowance instead of taxable special allowance. Also, opting for the New Regime might increase in-hand if you have low deductions.
Is PF deducted on the entire salary?
No, PF is calculated on (Basic + DA). It is mandatory for Basic up to ₹15,000, but most companies calculate it on full Basic.
What is Dearness Allowance (DA)?
DA is a cost-of-living adjustment allowance paid to government employees and pensioners. In private sector, it is often part of the 'Basic & DA' component.
Are bonus and variable pay part of monthly salary?
Usually, NO. Variable pay and performance bonuses are paid quarterly or annually. They are taxable when received.
Does opting out of PF increase in-hand salary?
Yes, but you can only opt out if your Basic is > ₹15,000 and it's your first job. However, it is NOT recommended as you lose the employer's contribution and tax benefits.
Is income up to 7 Lakhs tax-free?
Yes, under the New Tax Regime, income up to ₹7 Lakhs is effectively tax-free due to the tax rebate under Section 87A.