--- title: "India payroll calculator: in-hand salary, EPF and tax | AumnI tools" description: "Turn an Indian annual salary into monthly in-hand pay under the new or old tax regime, with EPF, professional tax, cess and the employer's EPF and EPS cost." url: https://aumnitools.com/in/tool/payroll-calculator category: "Financial" country: "India" updated: 2026-11-08 --- # Payroll Calculator An Indian salary offer is a cost-to-company style figure, and what arrives each month is lower after income tax, the employee's EPF and professional tax. This payroll calculator applies tax year 2026-27 rules under either regime, takes EPF as a share of basic wages, and shows the employer's EPS and EPF share beside monthly in-hand pay. ## India rules and figures - Employee EPF is 12% of basic wages, and the employer also pays 12%, of which 8.33% goes to the Employees' Pension Scheme. - The EPF statutory wage ceiling was raised from ₹15,000 to ₹25,000 a month with effect from 17 September 2026. - Professional tax is levied by states, and this calculator limits it to ₹2,500 a year. - Under the new regime a salaried person gets a ₹75,000 standard deduction, and the rebate removes tax when taxable income is at most ₹12,00,000. - Tax year 2026-27 runs from 1 April 2026 to 31 March 2027 under the Income-tax Act, 2025. Sources: [Income Tax Department e-filing portal: tax rates for individuals below 60](https://www.incometax.gov.in/iec/foportal/help/individual/return-applicable-1) (checked 2026-11-08); [EPFO FAQs (employee 12%, employer 3.67% EPF and 8.33% EPS)](https://pmvbry.epfindia.gov.in/faq-epfo/) (checked 2026-11-08); [PIB: EPFO wage ceiling enhanced from Rs 15,000 to Rs 25,000 per month](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2313829®=48&lang=2) (checked 2026-11-08); [Income Tax Department: Income-tax Act, 2025 comes into force from 1 April 2026](https://www.incometaxindia.gov.in/documents/d/guest/press-release-income-tax-act-2025-comes-into-force-from-01-april-2026-pdf) (checked 2026-11-08) ## How the payroll calculator works Salary is gross pay plus any bonus. Income tax, surcharge and cess are worked out for the year under the regime you pick. EPF is a share of basic wages, and professional tax is the amount you enter. Annual figures are divided by 12 for the monthly view. Formula: `in-hand per month = (gross − income tax − cess − EPF − professional tax) ÷ 12; EPF = 12% × basic wages up to ₹25,000 a month` - Pay is monthly only, so annual figures are divided by 12. The Pay frequency control has just that one choice. - Basic wages default to 50% of gross. EPF is 12% of basic, limited to a ₹25,000 a month wage ceiling unless you switch EPF on full basic wages on. - The employer's 12% is split into 8.33% EPS pension and the rest to EPF, using the same ceiling. - Professional tax is set by your state, is capped at ₹2,500 a year here, and is not deducted from taxable income. ## How to use the payroll calculator 1. **Pick pay type and frequency.** Choose salaried or hourly pay. Pay frequency offers monthly only in India. 2. **Enter the pay.** Type the annual salary in rupees, or an hourly rate with hours and overtime, plus any annual bonus. 3. **Choose the regime and PF settings.** Pick the new or old regime and an age group, then set basic wages as a share of gross, EPF on full basic wages and any professional tax. 4. **Read the monthly figures.** Net pay lists tax, cess, EPF and professional tax per month. Annual totals shows the year, and Employer cost shows EPS and EPF. 5. **Save the breakdown.** Copy breakdown places the figures on the clipboard, and Export CSV downloads them as a table. ## Example: ₹12,00,000 salary paid monthly, new regime Gross pay is ₹1,00,000 a month. After the ₹75,000 standard deduction, taxable income is ₹11,25,000, which the rebate brings to nil income tax. EPF is ₹3,000 a month, 12% of the ₹25,000 wage ceiling, so in-hand pay is ₹97,000, or ₹11,64,000 a year. The employer adds ₹2,082.50 of EPS and ₹917.50 of EPF, so the job costs ₹1,03,000 a month, ₹12,36,000 a year. EPF on full basic raises EPF to ₹6,000 and in-hand falls to ₹94,000. ## When to use the payroll calculator - **Estimating in-hand pay from an offer.** Enter the annual figure to see the monthly amount left after tax, EPF and professional tax. - **Comparing regimes.** Switch between new and old regime, entering your deductions for the old one, and compare monthly in-hand pay. - **Seeing the EPF ceiling.** Toggle EPF on full basic wages to see in-hand pay fall and the employer contribution rise. - **Costing an employee.** The Employer cost table shows EPS and EPF added to gross pay for the yearly cost of a salary. ## What the payroll calculator does not do - Only EPF is taken as a deduction. NPS, voluntary PF, DA and ESI are not modelled, and EDLI and EPF administration charges are not included in employer cost. - The 25,000 a month EPF ceiling is applied to the whole year, though it took effect on 17 September 2026. - Old-regime deductions and HRA exemption are entered as one total and are not calculated. EPF is not deducted from taxable income. - Slab rates for the new year are carried over from the prior year, which the Finance Bill 2026 memorandum describes as unchanged. - Hourly entries repeat one typical week across all 52 weeks. ## When something else is a better fit - **When you only want the yearly income tax under both regimes**, use the [Tax Calculator](https://aumnitools.com/tool/tax-calculator.md). - **When you need an exact payslip with allowances and TDS**, use your employer's payroll system or a chartered accountant. ## Questions about the payroll calculator ### What is in-hand salary on ₹12 lakh a year? ₹97,000 a month, or ₹11,64,000 a year, under the new regime with EPF at the ₹25,000 wage ceiling. Income tax is nil because taxable income is ₹11,25,000. ### Why is EPF only ₹3,000 when basic is ₹50,000? EPF is 12% of basic wages up to a ₹25,000 a month ceiling, which is ₹3,000. Switch on full basic wages to take 12% of the whole ₹50,000, or ₹6,000. ### What does the employer pay on top? On ₹12,00,000 it is ₹2,082.50 a month of EPS and ₹917.50 of EPF, so ₹3,000, and the job costs ₹1,03,000 a month. ### Is EPF counted as tax? No. It is a deduction that builds your provident fund, and you get it back on withdrawal. It is shown separately from income tax and cess. ### Why is there only monthly pay? Salaries in India are paid monthly, so the calculator offers one frequency and divides annual figures by 12. ## Related tools - [Tax Calculator](https://aumnitools.com/tool/tax-calculator.md): Estimates US federal income tax, FICA and state tax for 2026 by filing status - [Retirement Planning Calculator](https://aumnitools.com/tool/retirement-planning-calculator.md): Projects retirement savings against a 4% withdrawal target and shows any shortfall - [Budget Planner](https://aumnitools.com/tool/budget-planner.md): Plans monthly income and expenses by category, with a health score and debt payoff ## About this page Runs in your browser: what you enter is processed on this device and is not uploaded. Estimates for planning only, not financial, tax or legal advice. Check figures that matter with a qualified professional. Last checked against the tool's code on 2026-11-08. Interactive version: https://aumnitools.com/in/tool/payroll-calculator