Take Home Pay Formula

Net income or In-hand salary is calculated by knowing Income Tax deductions, Public Provident Fund, Professional Tax and Gross Salary. By Take Home Pay formula, calculate the actual take home income by subtracting all the deductions such as Income Tax, Provident Fund (PF) and Professional Tax from the Gross salary. As per take home salary formula, the Basic salary of an employee should be at least 50 -60 percentage of his/her gross salary. It is the salary that an employee receives after all the statutory deductions.

Take Home Salary Formula

Formula:

h = ( c - ( b × 12 ×0.12 ) - ( b × 12 × 0.0481 ) ) - (b × r) / 100 - ( b × 12 ×0.12 ) - p
y=h / 12


Where,

h =Yearly Take Home Salary
y = Monthly Take Home Salary
c = Yearly Cost to Company
b = Monthly Basic Salary
p = Professional Tax
r=tax rate

Related Calculator:

You can use the above given take home pay formula to calculate your take home salary. You can compute it by knowing your Cost to Company (CTC), Basic Salary, Income taxes and other taxes.


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