Payroll Calculator

How Payroll calculations are done?

Payroll calculations usually constitute 4 main components – Basic pay, Allowances, Deductions, and Savings. State Income Tax is calculated from the Gross – Deductions.

Gross Pay

Gross Pay is the sum total of Basic pay + Dearness Allowance + House Rent Allowance + Other Allowance.

Net Pay

Net Pay is the difference between Gross Pay – (Deductions + Total TDS). Total TDS is the sum total of TDS + 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 TDS, PF, ESI, and PT, etc.

  • TDS is the sum of (Basic + Allowances – Deductions) * 12 – IT Savings
  • PF deduction(Provident Fund) is 12% of Basic (Basic * 0.12)
  • ESI is 1.75% of – Gross Pay or 21,000, whichever is higher

IT Savings

IT Savings is the sum of 80C, 80D, 80CCC, 80CCD etc.

Payroll Calculator

Allowances

₹8,000.00
₹8,266.34

Deductions

₹783.65
₹2,400.00
₹350.00
₹200.00
₹36,266.34

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