Payroll Calculator

How Payroll calculations are done?

Payroll calculations usually constitute 4 main components – Basic pay, Allowances, Deductions, and IT Declarations. Income Tax is calculated on (Basic + Allowances – Deductions) * 12 – (IT Declarations + Standard deductions)

Gross Pay

Gross Pay is the sum of Basic pay + Allowances.

Net Pay

Net Pay is the difference between Gross Pay – (Deductions + Total TDS). Total TDS is the sum of TDS, Surcharge, Health & Education Cess.

Basic Pay

Basic Pay is 50% of Gross salary (Gross * 0.5).

HRA

The amount received as the HRA from the employer. Actual rent paid less 10% of the basic salary and 50% of the basic salary if staying in a metro city and 40% in a non-metro city.

Deductions

Deductions are the sum of PF, ESI, and PT etc.

  • TDS is calculated on (Basic + Allowances – Deductions) * 12 – (IT Declarations + Standard deductions)
  • PF deduction(Provident Fund) is 12% of Basic or 15,000, which ever is lower
  • ESI is 0.75% of – Gross Pay or 21,000, whichever is lower
  • Standard deductions (50,000)

Payroll Calculator

Allowances

₹8,000.00
₹8,266.34

Deductions

₹783.65
₹2,400.00
₹157.5
₹200.00
₹36,458.85

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