About PayCalc Pro

Our Mission

PayCalc Pro was built to solve one of the most frustrating problems for Indian working professionals: understanding their actual take-home salary. When you receive a job offer with a CTC of Rs.15 lakh, what does that really mean? How much will land in your bank account every month? How much goes to PF? How much income tax will be deducted? These are not simple questions — and the answers depend on dozens of variables specific to Indian salary structures.

We created PayCalc Pro to be the single most reliable, free, and instant tool for these calculations. No spreadsheets. No consultants. No guesswork. Just accurate, transparent breakdowns that match real Indian salary slips from companies like TCS, Infosys, Wipro, HCL, Cognizant, and other leading employers.

Every calculation on PayCalc Pro is based on publicly available government rules — the Income Tax Act 1961 (as amended by successive Finance Acts), the Employees' Provident Funds and Miscellaneous Provisions Act 1952, and the Payment of Gratuity Act 1972. We update our calculators every year as soon as the Union Budget is presented to Parliament.

Why Indian Salary Calculations Are Complex

Indian salary structures are uniquely complex compared to most countries. Your Cost to Company (CTC) is not your salary — it is the total cost your employer bears for employing you. It includes components you never directly receive, such as the employer's share of Provident Fund (PF) contributions and the actuarial provision for gratuity. Understanding these distinctions is critical for comparing job offers and financial planning.

A typical Indian salary has multiple layers. The basic salary forms the foundation — usually 40 to 50 percent of fixed CTC in corporate and IT companies. House Rent Allowance (HRA) is calculated as a percentage of basic (50 percent for metro cities, 40 percent for non-metro). Special allowance fills the remainder. On top of this, the employer contributes 12 percent of basic to EPF (capped at Rs.1,800 per month), plus a gratuity provision of approximately 4.81 percent of basic annually.

From your gross salary, you then lose employee PF (12 percent of basic, capped at Rs.1,800 per month), professional tax (Rs.200 per month in most states), and income tax (calculated on taxable income after standard deduction of Rs.75,000 under the new regime). The result — your actual in-hand salary — can be anywhere from 65 to 90 percent of CTC depending on your salary level and tax regime.

Our Calculation Methodology

All PayCalc Pro calculators use the standard salary structure followed by most Indian IT and corporate employers. Here is the exact methodology we follow:

• 1.Basic Salary: Set at 50% of Fixed CTC. This is the industry norm for IT and corporate companies (TCS, Infosys, Wipro, Accenture, etc.).
• 2.HRA: 50% of basic for metro cities (Mumbai, Delhi, Kolkata, Chennai); 40% for all other cities.
• 3.Employer PF: 12% of basic, capped at Rs.1,800/month (i.e., capped when basic exceeds Rs.15,000/month — EPFO ceiling).
• 4.Gratuity provision: (Basic x 15) / 26 = 4.81% of annual basic. This is an employer cost, not credited to you monthly.
• 5.Gross salary: CTC minus employer PF minus gratuity provision. Special allowance is the balancing figure.
• 6.Income tax: Calculated on (Gross - Employee PF - Rs.75,000 standard deduction) using the new tax regime slabs for FY 2026-27 with Section 87A rebate.
• 7.In-Hand: Gross - Employee PF (12% of basic, max Rs.1,800/month) - Professional Tax (Rs.200/month) - Income Tax.

FY 2026-27 Tax Rules We Use

All calculators are updated for Financial Year 2026-27 (Assessment Year 2027-28) as per the Union Budget 2026. The key rules applicable:

Our Tools

Our Commitment to Accuracy

We review and update all calculations every year after the Union Budget announcement in February. Our tax slabs, rebate limits, standard deductions, and EPF interest rates are sourced directly from official government notifications — the Finance Act, CBDT circulars, and EPFO announcements.

PayCalc Pro calculations are estimates based on standard salary structures. Actual in-hand salary can differ based on your company's specific salary structure, state-level professional tax rates, voluntary PF contributions, NPS contributions, reimbursements (LTA, medical, food coupons), and other components in your specific CTC letter. For official tax computation, always consult a Chartered Accountant or use the Income Tax Department's official calculator.

• ✓Always free — no subscriptions, no hidden fees, no ads inside the calculator
• ✓No account required — all calculations happen instantly in your browser
• ✓Your data never leaves your device — we do not store any salary information
• ✓Updated for FY 2026-27: new tax regime slabs, Rs.12L rebate, Rs.75K standard deduction, EPF 8.25%
• ✓Mobile-responsive design — works perfectly on any screen size