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.
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
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:
- Employee EPF Share: 12% of your basic salary is deducted and deposited into your EPFO account, matching the employer's share.
- State Professional Tax (PT): A state-level tax capped at ₹2,500 annually (approx. ₹200/mo), applicable in states like Maharashtra, Karnataka, Tamil Nadu, and West Bengal.
- Income Tax (TDS): Projected monthly income tax deductions under your chosen tax regime (Old or New).
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