Salary structure
Design basic, HRA and allowances sensibly: PF and gratuity are based on basic salary. Check take-home with the in-hand salary calculator.
PF and ESI
PF generally applies to establishments with 20 or more employees and ESI to establishments with 10 or more and wages within the ceiling. Contributions are due by the 15th of the next month.
Professional tax
Rules differ by state: Kerala, Tamil Nadu and Karnataka.
TDS on salary
Employers deduct tax on salary, file Form 24Q and issue Form 16: see the TDS guide.
Gratuity and exits
Compute gratuity with the calculator and settle dues on time.
Free tools for this topic
In-Hand Salary Calculator (CTC to Take-Home)
Convert annual CTC into monthly in-hand salary after PF, professional tax and income tax.
Learn more →Gratuity Calculator
Calculate gratuity from last drawn salary and years of service with the 15/26 formula and the ₹20 lakh cap.
Learn more →HRA Exemption Calculator
Calculate HRA exemption using the least-of-three rule for metro and non-metro cities.
Learn more →All articles in this guide (4)
Is Salary Earned Abroad Taxable in India? NRIs, RNOR and Residents
When foreign salary is taxable in India and how double taxation is avoided.
Professional Tax in Kerala: Who Pays, When and How
Kerala levies professional tax through local self-government bodies, usually half-yearly, on employees and professionals according to income slabs.
Professional Tax in Tamil Nadu: Who Pays and When
Tamil Nadu levies professional tax on employees and professionals, generally collected half-yearly through local bodies.
Professional Tax in Karnataka: Who Pays and How to Register
Karnataka levies professional tax on salaried employees, professionals and traders under the state tax-on-professions law, typically collected monthly...
Related services
Frequently asked questions
When must a company register for PF?
Generally when it has 20 or more employees, though voluntary registration is possible.
Is professional tax the same in every state?
No. Slabs, frequency and administration differ by state.
Who issues Form 16?
The employer, after filing the TDS return for the year.