User Guide
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- Adjust the options to match your scenario.
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About the Salary Calculator
Pay works differently depending on who employs you. A central government salary is built from a pay matrix level with DA, HRA and transport allowance stacked on top. A PSU pays industrial DA and a cafeteria allowance. A private employer quotes a single CTC figure that quietly includes money you never receive. This calculator covers all four — Central Government, State Government, Public Sector and Private — under either tax regime, and shows every rupee between the headline number and your bank account.
Central Government (7th CPC)
Pick your pay level and the entry basic pay fills in from the 7th CPC pay matrix, from Level 1 (₹18,000) to Level 18 (₹2,50,000). On top of that:
| Component | How it is calculated |
|---|---|
| Dearness allowance | 60% of basic from 1 January 2026, revised every six months |
| House rent allowance | 30% / 20% / 10% of basic for X / Y / Z cities, with floors of ₹5,400 / ₹3,600 / ₹1,800 |
| Transport allowance | ₹7,200 for Level 9+, ₹3,600 for Levels 3–8, ₹1,350 for Levels 1–2 in higher-TPTA cities — with DA applied on top |
| NPS / UPS | 10% of basic + DA from you, 14% from the government |
| CGHS and CGEGIS | Fixed monthly amounts that scale with pay level |
Worked example — Level 10, X city. Basic ₹56,100 + DA ₹33,660 + HRA ₹16,830 + transport ₹11,520 (₹7,200 with 60% DA on it) gives a gross of ₹1,18,110 a month. Take off NPS ₹8,976, CGHS ₹650, CGEGIS ₹120, professional tax and income tax, and in-hand lands near ₹1,01,114 — while the government separately puts ₹12,566 a month into your NPS account.
The 8th Pay Commission has been announced with an expected effective date of 1 January 2026, but its fitment factor and revised pay matrix have not been finalised. Until they are, every figure here stays on the 7th CPC structure.
State Government
Every state sets its own DA percentage, HRA slabs, transport allowance and pension scheme, and revises them on its own timetable — so no calculator can hard-code them honestly. This tab gives you the same structure with every rate editable, plus a choice between NPS and GPF/OPS. Take the numbers from your state pay order or your last payslip and the arithmetic is then exact.
Public Sector (PSU)
PSU pay follows either the IDA pattern, revised quarterly against the consumer price index, or the CDA pattern that mirrors central government rates. On top of basic and DA sits a perks and cafeteria allowance, commonly around 35% of basic, which each company defines for itself.
The savings side is where PSU employees have the most control, so the tab exposes all three levers: statutory PF at 12%, VPF — voluntary provident fund, any percentage you choose on top of the statutory 12%, earning the same interest — and a separate PPF contribution up to ₹1.5 lakh a year. Raising VPF or PPF lowers your take-home now and raises your retirement corpus later; the tool shows both sides of that trade immediately.
Private sector
Private pay is quoted as CTC, which includes the employer PF contribution and the gratuity provision — neither of which reaches you as salary. Remove those to get gross, then subtract your own PF, professional tax and income tax to get in-hand. The private tab also carries a pay-frequency breakdown: the same salary expressed hourly, daily, weekly, bi-weekly, semi-monthly, monthly, quarterly and annually, with holidays and paid leave factored into the effective daily rate.
A private-sector worked example: ₹12,00,000 CTC
Take a standard structure — basic at 40% of CTC, employer PF on the ₹15,000 statutory ceiling, gratuity included in CTC, professional tax of ₹2,400 a year, new tax regime:
| Step | Amount |
|---|---|
| Annual CTC | ₹12,00,000 |
| Basic salary (40%) | ₹4,80,000 |
| Less: employer PF (12% of ₹1,80,000 ceiling) | −₹21,600 |
| Less: gratuity provision (4.81% of basic) | −₹23,088 |
| Gross salary | ₹11,55,312 |
| Less: standard deduction | −₹75,000 |
| Taxable income | ₹10,80,312 |
| Income tax after Section 87A rebate | ₹0 |
| Less: your own PF contribution | −₹21,600 |
| Less: professional tax | −₹2,400 |
| Monthly in-hand | ₹94,276 |
The striking part is the tax line. Taxable income of ₹10,80,312 sits under the ₹12,00,000 rebate threshold, so the Section 87A rebate wipes the entire liability out — a ₹12 lakh CTC can genuinely carry zero income tax under the new regime once the standard deduction and the employer’s own contributions are removed from the calculation.
The chart, and why it matters
The breakdown bar shows your full CTC split into take-home, income tax, your PF, the employer’s PF and the gratuity provision, each labelled with its share. It makes visible the thing salary negotiations usually hide: on a typical structure, only around 90–94% of a modest CTC becomes cash in hand, and at higher salaries tax takes a visibly larger slice. If you are comparing two offers, compare the green segment, not the headline number.
Where employers differ
Two companies quoting the same CTC can pay noticeably different amounts. The basic percentage is the biggest lever — a higher basic means more PF (good for long-term savings, lower take-home now) and a larger gratuity provision. Some employers calculate PF on your full basic rather than the ₹15,000 statutory ceiling, which raises both contributions. Others load CTC with insurance premiums, meal cards or a notional “flexible benefits” pot. Adjust the assumptions in the tool to match your own offer letter rather than accepting the defaults.
Tax treatment
Tax is calculated on the current slabs with the ₹75,000 standard deduction and the Section 87A rebate under the new regime, including marginal relief just above the threshold, and a 4% health and education cess — the same logic as our Income Tax Calculator, so the two agree. Switch to the old regime and you can enter 80C, 80D and HRA exemption; work the last one out with the HRA Calculator.
Limits worth knowing
Professional tax is a state levy with different slabs in each state, and the figures offered here are typical rather than exact. The calculator assumes a full financial year of employment and no variable pay, bonus, ESOP or arrears. It is a planning estimate, not a payslip. Rules from the Income Tax Department and EPFO; confirm anything consequential with your employer or a qualified professional.
Frequently Asked Questions
How is a central government salary calculated?
Basic pay comes from your 7th CPC pay matrix level. Add dearness allowance (60% of basic from January 2026), HRA at 30%, 20% or 10% depending on whether you are in an X, Y or Z city, and transport allowance by pay level with DA applied on top. From that gross, deduct NPS at 10% of basic plus DA, CGHS, CGEGIS, professional tax and income tax.
What is the in-hand salary for Level 10 in a metro?
On a Level 10 basic of ₹56,100 in an X city with DA at 60%, gross works out to about ₹1,18,110 a month and in-hand to roughly ₹1,01,114 under the new regime. The government also contributes ₹12,566 a month to your NPS, which does not appear in your take-home.
Has the 8th Pay Commission changed these figures?
Not yet. The 8th CPC has been announced with an expected effective date of 1 January 2026, but the fitment factor and revised pay matrix have not been finalised. This calculator therefore stays on the 7th CPC structure, and will be updated once the actual recommendations are notified.
What is the difference between VPF and PPF?
VPF is voluntary provident fund — extra contribution on top of your statutory 12%, deducted from salary and earning the same interest as EPF. PPF is a separate public provident fund account you fund yourself, capped at ₹1.5 lakh a year with a 15-year lock-in. PSU and private employees can use both, and the calculator has fields for each.
Why does a PSU salary use IDA instead of DA?
PSUs on the industrial pattern pay Industrial Dearness Allowance, revised quarterly against the consumer price index, rather than the central government DA revised twice a year. Some PSUs follow the central CDA pattern instead — the tool supports both.
How do I calculate in-hand salary from CTC?
Start with CTC, remove the employer contributions inside it — employer PF and the gratuity provision — to get gross salary. From gross, subtract your own PF contribution, professional tax and income tax. What remains is your annual in-hand; divide by twelve for the monthly figure.
What is the in-hand salary for 12 LPA?
On a typical structure with basic at 40%, PF on the statutory ceiling and the new tax regime, roughly ₹94,000 a month. Taxable income lands under ₹12,00,000, so the Section 87A rebate removes the income tax entirely. A higher basic or PF on full basic reduces the take-home.
Why is my in-hand so much lower than my CTC?
Because CTC counts money you never receive as salary: the employer’s PF contribution, the gratuity provision, and often insurance premiums. Add your own PF, professional tax and income tax on top and the gap widens further. A gap of 15–25% between CTC and in-hand is normal.
Does a higher basic salary mean more take-home?
Usually the opposite. A higher basic increases both PF contributions and the gratuity provision, so more of your CTC is diverted into long-term savings and less arrives as monthly cash — though it does improve your retirement corpus and gratuity payout.
Which tax regime gives a higher in-hand salary?
For most salaried people without large deductions, the new regime now works out better because of the ₹75,000 standard deduction and the wider rebate. The old regime can still win if you claim substantial 80C, 80D, HRA and home loan interest. Compare both in the tool.
Is my salary information stored?
No. Everything is calculated in your browser and nothing you enter is uploaded or saved.