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Gross Salary Calculator

Our Gross Salary Calculator helps you calculate gross salary from CTC. Understand the CTC to gross conversion by separating employer provident fund contributions, gratuity, and monthly payroll splits.

Gross Salary
Your total monthly earnings before tax deductions (TDS), professional tax, and employee EPF shares are subtracted.
CTC to Gross Conversion
The process of deducting employer EPF contributions, gratuity provisions, and non-cash benefits from your Cost to Company.
✓ Accurate Gross calculations
✓ FY 2026-27 verified
✓ Employer PF deductions split
✓ 100% free tool
CTC to Gross & In Hand Calculator FY 2026–27
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Real-Time Salary Intelligence

Enter your annual CTC on the left to instantly reveal your custom monthly in hand salary, retirement savings, tax slabs comparison, and interactive analytics charts.

Understanding Gross Salary in Indian Payroll

CA
Written by CTC Calculator Editorial Team Reviewed by CA K. Sharma (Chartered Accountant) | Updated: June 15, 2026

What is Gross Salary?

Gross Salary is the absolute direct compensation planned for an employee. It is the sum of basic pay and all cash allowances (HRA, Special Allowance, variable bonuses) before any direct statutory deductions (Employee EPF share, income tax TDS, and state Professional Tax) are subtracted. Under Indian payroll rules, your gross salary is what you directly receive in cash *before* taxes and standard deductions (learn more in our detailed guides: Gross vs Net Salary and how HR calculates salary).

CTC vs Gross Salary: The Key Difference

Many professionals confuse CTC with Gross Salary. Cost to Company (CTC) represents the *total cost* an employer spends to hire you. Gross Salary is CTC *minus* indirect costs that represent long-term retirement benefits or statutory reserves. The exact formula is:

Gross Salary = CTC – Employer EPF Contribution – Gratuity Accruals

For example, if your CTC is ₹12,00,000, your gross salary might be approximately ₹11,30,000. The remaining ₹70,000 represents the employer's statutory EPF share and gratuity cost accrued in the company reserves.

What Deductions Are Subtracted from Gross Salary?

Once your monthly Gross Salary is calculated, the payroll department makes three primary deductions to arrive at your final monthly credited take home salary project:

Related Tools & Guides: To calculate your final take-home salary after all tax rebates, use our main CTC to In Hand Salary Calculator, analyze component structures with the Salary Breakup Calculator, or evaluate different company offers side by side with the Job Offer Comparator. Read more in our detailed article Gross vs Net Salary: Key Differences.

Disclaimer: CTC Calculator provides calculations based on standard Indian payroll and tax slabs (Budget FY 2026-27) for educational purposes. Actual structures and deductions may vary based on company policy. Please consult a Chartered Accountant or tax professional for financial decisions.

Calculation Methodology: Calculations run client-side in your browser using pure JavaScript. No personal salary data is transmitted to our servers or stored. EPF calculations default to 12% of basic salary, gratuity is projected at 4.81% of basic, and Professional Tax is based on selected state boundaries.

Calculation Methodology & Statutory Slabs

Our salary intelligence engine runs entirely local client-side scripts in your browser. No private salary figures or professional parameters are transmitted to external servers or logged, guaranteeing absolute data safety. Calculations align with standard Indian corporate payroll systems and regulatory guidelines:

  • Income Tax Slabs (Budget FY 2026-27): Updated to incorporate standard deductions and slabs. Tax calculations default to the New Tax Regime (the national default scheme) but support comparative breakeven projections under the Old Tax Regime. Standard deduction is projected at ₹75,000 for the New Regime and ₹50,000 for the Old Regime.
  • Employees' Provident Fund (EPF): Calculated at the statutory rate of 12% of Basic Salary under the Employees' Provident Fund Scheme, 1952. Support is provided for standard capping (restricted to ₹15,000 basic limit, resulting in ₹1,800/month employee contribution) and uncapped contributions.
  • Gratuity Provision: Projected at 4.81% of Basic Salary (equivalent to 15/26 of basic salary per year of service) under the Payment of Gratuity Act, 1972. Statutory tax exemption is capped at ₹20 Lakhs.
  • Professional Tax (PT): State-wise slabs are based on the latest boundaries and limits enacted by respective state departments.

For more details, please review our Editorial Policy, read our full Disclaimer, or consult a Chartered Accountant for corporate tax planning.

Gross Salary Calculator FAQs

Understand gross pay, deductions, and payroll terminology in India

What is the difference between Gross Salary and CTC?
CTC (Cost to Company) represents the total expense of an employer on an employee, including retirement costs. Gross Salary is the direct payment before taxes and deductions. Gross Salary excludes employer statutory EPF contributions and gratuity reserves.
What is the difference between Gross Salary and Net Take Home Salary?
Gross Salary is the pay before any deductions. Net Take Home Salary is the actual cash credited to your bank account after subtracting your employee EPF contribution (12% of basic), state Professional Tax (up to ₹200/mo), and Income Tax TDS.
Does Gross Salary include HRA and Special Allowance?
Yes. Gross salary includes basic salary, HRA, special allowances, leave travel allowances (LTA), variable performance bonuses, and any other cash benefits paid directly to you.
How is Gross Salary calculated in a salary offer letter?
To find the Gross Salary in an offer letter, look at the direct monthly earnings table (Basic + HRA + Special Allowance + Bonus). Alternatively, take the total annual CTC and subtract the Employer PF share and the Gratuity cost listed under statutory benefits.
Is Gross Salary taxable in India?
Gross Salary is the base on which taxes are computed. However, tax is not calculated on the entire Gross. You subtract standard deductions (₹75,000 for New Regime, ₹50,000 for Old Regime) and any active tax exemptions (HRA, 80C under the Old Regime) to find your Taxable Income.