India In-Hand Salary & Gratuity Calculator
Convert annual CTC to accurate monthly in-hand take-home salary. Automatically calculates EPF, ESIC, State Professional Tax, New Regime TDS, and Payment of Gratuity Act 1972 benefits.
Monthly take-home salary equals Gross Salary minus 12% Employee EPF, state Professional Tax (₹200/mo), ESIC (0.75% if gross ≤ ₹21k), and New Tax Regime TDS. Statutory gratuity equals (15 × Basic × Years) ÷ 26 for employees completing 5+ continuous years.
Interactive India Salary & Gratuity Calculator
India Salary, Tax & Gratuity Calculator
EPFO, ESIC, State PT, Gratuity Act 1972 & New Tax Regime FY 2025-26
Autonomous Indian Payroll with Automated PF, ESIC & Gratuity Act Compliance
Generate monthly EPFO ECR files, automate multi-state Professional Tax, deduct ESIC, and track Payment of Gratuity Act 1972 balance sheet liabilities seamlessly.
Indian Payroll Compliance Quick Facts (2026)
- EPF Contribution
- 12% Employee + 12% Employer (Wage ceiling: ₹15,000/mo)
- ESIC Threshold
- Applicable if Gross Monthly Wage ≤ ₹21,000
- Gratuity Eligibility
- Minimum 5 continuous years (Payment of Gratuity Act 1972)
- Gratuity Cap
- Statutory tax-free maximum of ₹20,00,000 (₹20 Lakhs)
- Standard Tax Deduction
- ₹75,000 under New Tax Regime (Section 115BAC)
- State PT Variance
- KA, MH, TS, TN, WB: ~₹200/mo | DL, HR: ₹0
Understanding Indian Statutory Payroll Components
Navigating payroll in India requires multi-state compliance across central and state government mandates. High-growth tech companies in Bengaluru, Mumbai, Hyderabad, and Delhi need unified systems to manage diverse statutory rates.
Electronic Challan cum Return (ECR) files generated with UAN validation and automated monthly transfers.
State-specific PT rules automatically mapped based on employee branch location.
Quarterly 24Q e-TDS filing and year-end automated digital Form 16 distribution.
Best Practices for Indian HR & Payroll Teams
- ✓Salary Structure Optimization: Maintain Basic salary between 40%–50% of CTC to balance EPF compliance and take-home pay.
- ✓Gratuity Provisioning: Provision gratuity on monthly accounting statements to prevent lump-sum balance sheet spikes upon employee exits.
- ✓Tax Regime Selection: Support both Old and New Tax Regimes with live declaration portals and tax estimator previews.
- ✓Multi-State Compliance Hub: Centralize payroll filings for remote employees working across Karnataka, Maharashtra, Telangana, and Delhi.
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28-State Professional Tax slabs, LWF schedules, EPFO & ESIC statutory rules.
Primary sources
- Ministry of Labour & Employment, Government of India — the Payment of Gratuity Act, 1972
- EPFO — Employees’ Provident Fund Organisation — provident fund contribution rates and ECR filing
Source links verified 2026-09-06
Frequently asked questions
How is gratuity calculated in India under the Payment of Gratuity Act, 1972?
In India, statutory gratuity is calculated using the formula: (15 × Last Drawn Basic Salary × Completed Years of Service) ÷ 26. An employee must complete at least 5 years of continuous service to be eligible, and the tax-free gratuity is capped at ₹20,00,000 (₹20 Lakh).
How is in-hand salary calculated from annual CTC in India?
Monthly in-hand (take-home) salary equals Monthly Gross Salary minus statutory deductions, which include Employee EPF (12% of basic), Professional Tax (₹200/mo in most states), ESIC (0.75% if gross is under ₹21,000), and monthly TDS (Income Tax under the New or Old Tax Regime).
What is the standard deduction under the New Tax Regime in India?
Under the updated New Tax Regime (Section 115BAC), a standard deduction of ₹75,000 is available for salaried individuals, and income up to ₹7,00,000 attracts zero tax due to the Section 87A rebate.
Which Indian states charge Professional Tax (PT)?
Karnataka, Maharashtra, Telangana, Andhra Pradesh, Tamil Nadu, Gujarat, and West Bengal levy state Professional Tax (typically ₹200/month or ₹2,500/year). Delhi-NCR, Haryana, Rajasthan, and Uttar Pradesh do not levy Professional Tax.
How is EPF calculated on salary in India?
Employee EPF is 12% of basic wages, and the employer contributes a further 12%. Contributions are mandatory on wages up to ₹15,000 a month, so the capped employee amount is ₹1,800 a month (12% of ₹15,000); contributing on the full basic is possible by agreement. The calculator has an EPF cap switch so you can see the effect on take-home pay.
Can I use this as a payroll calculator for my employees?
Yes, for one employee at a time: enter annual CTC and work state to see EPF, ESIC, Professional Tax, TDS and monthly take-home. It is an estimate. Running payroll for a whole team, including ECR, ESIC challan and Form 24Q filing, needs payroll software such as NeuralHR.
How does NeuralHR automate Indian multi-state statutory payroll?
NeuralHR automates monthly payroll generation across all Indian states with real-time statutory deductions for EPFO, ESIC, PT slabs, automated Form 16 Part A & B generation, and instant Gratuity liability provisioning.
Automate Indian Multi-State Payroll & Compliance
Run error-free Indian payroll with automated EPFO, ESIC, State PT, Form 16, and Gratuity tracking inside NeuralHR.