Free Salary Calculator in India (2026)

What's Included

Everything you need to build an India offer

Basic Salary Builder

Start with a basic salary and build a full package using a market-standard India allowance structure. Set the foundation before layering in housing, transport, medical, and other components.

Housing & Transport

Auto-apply India market norms for housing (25 to 35% of basic) and transport allowances. Adjust to match your company policy or offer structure.

Indian & Expat Modes

Toggle between Indian national and expatriate packages. PF and ESI contributions apply automatically for Indian nationals, keeping your calculations compliant.

Income Tax Calculation

India applies a progressive income tax ranging from 0% to 30%. See the accurate net take-home amount your candidates will receive after all applicable deductions.

How It Works

Three steps to a confident offer

Enter Basic Salary

Input the basic salary and select the employee nationality.

Configure Allowances

Adjust housing, transport, and other allowances to match your offer structure.

Get Full Breakdown

Instantly see gross salary, deductions, net salary, and annual compensation.

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India

What Is Basic Salary?

Basic salary is the fixed component of an employee's pay before any allowances, deductions, or overtime are added. In India, it serves as the reference point for calculating Provident Fund (PF) contributions, gratuity, and income tax liability. Employers typically set basic salary at 40 to 50% of the total Cost to Company (CTC), as a higher basic salary increases the statutory contribution obligations for both employer and employee.

What Is an Allowance?

Allowances are additional payments made by employers to cover specific employee needs such as housing, transport, medical, or special expenses. In India, certain allowances are partially or fully exempt from income tax under the Income Tax Act, making them an important tool for structuring tax-efficient compensation packages. Common allowances include House Rent Allowance (HRA), Leave Travel Allowance (LTA), and conveyance allowance.

What Is Overtime?

Overtime refers to the extra payment an employee receives for working beyond the standard working hours. In India, the standard working week is 48 hours under the Factories Act. Overtime is paid at 2x the ordinary rate of wages for hours worked beyond the standard limit. Rules may vary across states and industries under applicable labour legislation.

What Are Deductions?

Deductions in India include Provident Fund (PF) contributions, Employee State Insurance (ESI) where applicable, Professional Tax (state-specific), and income tax (TDS). Provident Fund deductions apply to employees earning up to the applicable wage ceiling, while ESI applies to employees earning up to INR 21,000 per month. Income tax is deducted at source (TDS) by the employer based on the employee's projected annual income.

What Is Provident Fund (PF) and ESI?

The Employees Provident Fund (EPF) is a mandatory retirement savings scheme for Indian Nationals earning up to the prescribed wage limit. Employees contribute 12% of their basic salary and Dearness Allowance (DA), and employers match this at 12%, of which 8.33% goes to the Employees Pension Scheme (EPS). ESI (Employee State Insurance) provides healthcare and social protection benefits. Employees contribute 0.75% of gross wages and employers contribute 3.25%, applicable to employees earning up to INR 21,000 per month.

How to Manage Payroll in the India

Managing payroll in India requires compliance with central and state-level labour laws, the Income Tax Act, and the EPF and Miscellaneous Provisions Act. Key aspects include:

Adhering to India Labour Laws: Ensure compliance with overtime rules, leave entitlements, gratuity calculations, and applicable state-specific minimum wages.
Calculating TDS Correctly: Income tax must be deducted at source each month based on the employee's estimated annual income and applicable tax regime (old or new).
Tracking PF and ESI Contributions: PF is mandatory for eligible employees. ESI applies to employees earning up to INR 21,000 per month. Both require monthly filings and remittances.
Structuring Allowances Efficiently: Tax-exempt components like HRA, LTA, and conveyance allowance can significantly reduce the employee's tax liability when structured correctly.

How Much Tax Is Applied on Salary in India?

India offers employees a choice between two tax regimes: the old regime with exemptions and deductions, and the new regime with lower rates but fewer exemptions. Under the new tax regime for FY 2025-26, the applicable slabs are:

0% on annual income up to INR 3,00,000
5% on income between INR 3,00,001 and INR 7,00,000
10% on income between INR 7,00,001 and INR 10,00,000
15% on income between INR 10,00,001 and INR 12,00,000
20% on income between INR 12,00,001 and INR 15,00,000
30% on income above INR 15,00,000

A standard deduction of INR 75,000 is available under the new regime. Employees can choose the regime that results in lower tax based on their individual allowance and investment profile.

Minimum Wage in India

India does not have a single national minimum wage. Instead, minimum wages are set by both the central government and individual state governments, and vary by industry, skill level, and geography. The central government sets a National Floor Level Minimum Wage as a reference point, currently at INR 178 per day. State minimum wages for skilled workers in major cities such as Mumbai, Delhi, and Bengaluru are typically significantly higher. Employers must comply with the minimum wage applicable to their state and industry.

Average Net Salary in India

Average net salaries in India vary widely by city, industry, and seniority. For professional roles, monthly net salaries typically range between INR 50,000 to INR 2,00,000 after tax and deductions. Metro cities such as Bengaluru, Mumbai, Hyderabad, and Delhi command the highest salary levels, particularly in technology, financial services, and consulting. Senior professionals and those in multinational organisations often earn considerably higher packages when CTC components including variable pay, stock options, and benefits are included.

Your Questions Answered

What is the difference between CTC and take-home salary in India?

CTC (Cost to Company) is the total annual expenditure an employer incurs for an employee, including basic salary, allowances, employer PF contributions, gratuity provisions, and any other benefits. Take-home salary is what the employee actually receives after deducting income tax (TDS), employee PF contributions, ESI, and Professional Tax. The difference between CTC and take-home can be 20 to 35% for mid-to-senior level employees.

Can employees in India choose between the old and new tax regime?

Yes. Salaried employees in India can choose between the old tax regime, which allows exemptions for HRA, LTA, and deductions under Section 80C among others, and the new tax regime, which offers lower slab rates but removes most exemptions. The choice is made at the start of each financial year and can be changed when filing the annual income tax return. Employers deduct TDS based on the regime selected by the employee.

Is Provident Fund mandatory for all employees in India?

EPF is mandatory for all employees earning up to INR 15,000 per month in basic salary in organisations with 20 or more employees. Employees earning above this threshold can opt out of EPF or voluntarily continue contributions. Both employer and employee contribute 12% of basic salary, making PF a significant component of the overall payroll cost for employers.

How is gratuity calculated in India?

Gratuity is payable to employees who have completed at least five years of continuous service. It is calculated as 15 days of last drawn basic salary multiplied by the number of completed years of service, divided by 26 working days. The maximum gratuity amount exempt from tax is INR 20,00,000 under the Payment of Gratuity Act.

What is Professional Tax and who pays it in India?

Professional Tax is a state-level tax levied on salaried employees and self-employed individuals. It is deducted by the employer from the employee's salary each month and remitted to the respective state government. The rates and applicability vary by state. Maharashtra, Karnataka, West Bengal, and Andhra Pradesh are among the states that levy Professional Tax. The maximum Professional Tax payable is capped at INR 2,500 per year.

India Salary Calculator 2026

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