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EMI Calculator IFSC Code Blogs FAQsSalary is compensation received by an employee from an employer for giving the work and time to the employer for completing the assigned task. Salary is usually given for a cumulative period be it daily, hourly, biweekly or monthly.
In a company, a person is employed as a freelance or as a permanent employee. Freelancers are not eligible for benefits such as bonuses, tax benefits, leaves, etc. but the compensation amount given to freelancers is higher as compared to salaried employees for the same nature of work.
What is the salary calculator?
Process of using a salary calculator
It is always recommended to make use of the salary calculator which pertains to the country in which you are getting your salary.
Salary Calculator working
Firstly, the salary calculator calculates your Gross salary.
Gross Salary = Cost to the company (CTC)- Employer’s Contribution (Provident Fund and Gratuity Amount)
After calculating the gross salary, it determines your Taxable income.
Taxable Income = Gross Salary – Employees Provident Fund Contribution- Conveyance allowance- House rent allowance – leave travel allowance-medical insurance-tax saving investments-any other deductions.
Then the salary calculator application finds out the Income-tax using application of current income tax rules, regulations, slabs, and rates.
We all know that the Income Tax slab rates are keep on changing with every financial year’s budget. So, make sure to always apply the newest rates to the salary calculator app.
After that Salary calculator application calculates the take-home salary.
Take-home salary = Gross Salary- Income Tax – Provident Fund – Professional Tax
Please note that values received through the Salary Calculator app may not match your salary slip due to the following reasons:
Although, you can manually enter the correct deduction details for achieving accurate results.