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What Is a Salary Calculator?
Salary is a payment made by an employer to an employee for providing their services to the organisation. The details of your salary are mentioned in the employment contract. However, it is essential to determine your take-home salary to plan your expenses better. You can easily ascertain your take-home salary using Angel One’s salary calculator.
Apart from the in-hand monthly salary, Angel One’s Salary Calculator also helps you ascertain take-home annual salary, monthly deductions, and annual deductions. This calculator is available for free and is very easy to use.
What Are the Components of a Salary?
Before using the online salary calculator to calculate your take-home salary, it is important to understand the basic components of the salary:
- Basic Salary: The basic salary is around 40%-50% of the total salary. This is a fixed component of the CTC (Cost to Company) package. It depends on a few factors like the employee’s experience, knowledge, qualifications, etc.
- House Rent Allowance (HRA): It is an allowance provided to employees living in a rented house. According to Section 10(13A) of the Income Tax Act 1961, HRA is fully/partially exempt from taxes based on certain conditions.
- Leave Travel Allowance (LTA): An employee is provided with an LTA, which is an allowance provided for travel expenses. The employees need to provide travel proof to claim LTA.
- Professional Tax: This is an employment tax levied by the State Government of India.
- Special Allowance: This is a component where the employer can offer a special allowance to the employee for various reasons. The special allowance can include hostel rent, children’s education, etc. This component is fully taxable.
- Bonus: This is a performance-based incentive provided by the employer. Once the employer declares the bonus, it is taxable in the same financial year.
- Employee Contribution to the Provident Fund (PF): The employer and employee each must contribute 12% of the employee’s basic salary to the Employee Provident Fund (EPF).
How to Use the Online Salary Calculator?
Now that you are familiar with the basic components of a salary, you can use Angel One Salary Calculator to quickly calculate your monthly take-home salary, annual take-home salary, and monthly and annual deductions without any errors.
Here are the steps you need to follow to use the salary calculator:
- Enter the CTC
- Enter the Bonus
- Enter the Monthly Professional Tax amount
- Now Enter the Monthly Employer’s contribution to PF
- Now Enter the Monthly Employee’s contribution to PF
- Enter the Additional Monthly Deductions (if there are any)
Once these details are entered, you get your results of monthly take-home salary, annual take-home salary, monthly deductions, and annual deductions.
Let us use an example to understand the working of the Angel One online salary calculator better.
Assume your CTC is Rs. 10 lakh. The employer provides you with a bonus of Rs. 60,000 for the financial year. Then your total gross salary is Rs. 10,00,000 – Rs. 60,000 = Rs. 9,40,000. The bonus is deducted from the CTC.
Gross Salary = Rs. 9,40,000
- The professional tax (Rs. 2,400 per year) is deducted from the gross salary.
- PF contributions made by the employee and employer are deducted from the gross salary. The EPF contribution is 12% of the Rs. 15,000 (maximum salary limit). It is Rs. 1,800 per month and Rs. 21,600 per year.
- If there is a yearly deduction like employee insurance of Rs. 2,000, even that is deducted.
Total Deductions = Rs. 2,400 + Rs. 21,600 + Rs. 21,600 + Rs. 2,000 = Rs. 47,600.
The salary calculator formula is, Take Home Salary = Gross Pay – Total Deductions
Therefore, Rs. 8,92,400 is your annual take-home salary, and the monthly take-home salary will be Rs. 8,92,400/12 = Rs. 74,366.67 Using the Angel One Salary Calculator, you can make all the above calculations in a minute without any errors.
Benefits of Using a Salary Calculator
- Fast results: Angel One salary calculator can assist you in calculating the take-home monthly and annual salary quickly within a few seconds.
- Clarity: The Angel One salary calculator provides the information you need clearly. It gives a clear picture of the salary and deductions.
- Provides accuracy: In manual calculations, there can be errors while calculating. Angel One Salary Calculator eliminates the scope for errors and gives the right results.
- Helps you plan finances: Determining the monthly take-home salary can help you plan your expenses correctly.
- Free to use: You can use the salary calculator for free from anywhere at any time.
Salary Calculator FAQs
What is the salary calculator?
Angel One salary calculator is a tool designed to help you calculate your take-home salary and deductions. This calculator makes an accurate and reliable estimation using key components of your Cost to Company (CTC).
How to use the salary calculator online?
Visit the salary calculator page on Angel One. Next, you need to enter variables like the CTC, Bonus Included in CTC, Monthly Professional Tax, Monthly Employer PF, Monthly Employee PF, and Monthly Additional Deductions (if any) to view your take-home salary and deductions instantly.
Is the salary calculator free to use?
Yes. The salary calculator is available on Angel One for free. You can use it as often as needed.
What are the components of a salary?
The components of a salary vary with each employer. The common components of salary are Basic Salary, House Rent Allowance (HRA), Leave Travel Allowance (LTA), Special Allowance, Bonus, Employee Provident Fund (EPF), and Professional Tax.