Indian payroll depends on tax-regime choice, EPF, and ESI coverage. Everhour keeps approved leave and work time ready for payroll review.
Enter gross salary and tax rates to instantly see net pay and your effective combined tax rate — monthly, bi-weekly, or weekly.
The calculator gives you the number — Everhour takes it from there.
One click and you're timing. Start a timer, add an entry, edit the details. This is exactly how it feels in Everhour.
Set a budget, assign rates, and get alerted before you're over.
Measurement
Track your budget through time or costs
Every report you need — configured your way, always up to date.
Tracked hours flow straight into a polished invoice — no copy-paste, no manual math.
An India pay calculation answers three different questions: monthly net pay, statutory deductions from the employee, and total employer payroll cost. Gross salary starts the calculation, then salary TDS, employee EPF, and employee ESI reduce take-home pay when the worker and establishment are covered.
The same gross salary can produce different net pay when the employee chooses the old tax regime instead of the default Section 115BAC new tax regime, submits Form 12BB claim details, crosses the ESI wage limit, or has EPF calculated on capped wages instead of a higher approved contribution base.
Start with monthly gross salary. Convert annual salary to a permitted wage period because Indian wage payment rules do not allow a wage period longer than one month. Then calculate salary TDS under the applicable income-tax regime, employee EPF at 12% where covered, and employee ESI at 0.75% where covered and monthly wages are up to INR 21,000.
Example: an employee earns ₹80,000 per month, has ₹30,000 of basic wages and dearness allowance, and remains an EPF covered member. Statutory EPF is capped at ₹15,000 unless higher contribution is allowed by joint request, so employee EPF is ₹1,800. Annual taxable income of ₹960,000 under the AY 2026-27 new regime produces ₹36,000 tax before rebate, and the Section 87A rebate reduces it to zero. Net monthly pay is ₹78,200.
The EPF and ESI lines change the result only when the employee and establishment are covered. For EPF, a worker whose pay exceeds INR 15,000 per month is treated as an excluded employee for initial membership, while a covered member above that amount usually has statutory contributions limited to INR 15,000 unless a higher contribution is allowed by joint request.
ESI uses a different test. Employees' State Insurance generally applies to covered employees with monthly wages up to INR 21,000, with 0.75% deducted from the employee and 3.25% paid by the employer. A calculator that applies ESI to every salary overstates deductions. A calculator that ignores ESI for covered low-wage employees understates both net-pay deductions and employer cost.
A one-off calculation is enough when you need to compare a salary offer, estimate a single month's take-home pay, or verify whether EPF and ESI thresholds affect one employee. Save the inputs you used: gross salary, wage period, tax regime, EPF basis, ESI coverage, and declarations that changed TDS.
A managed workflow becomes necessary when payroll depends on approved time off, partial-day leave, attendance corrections, and month-end review. Everhour Time Off tracks vacations, sick leave, and custom leave types with balances, approval status, and partial-day durations, so payroll reviewers can see paid leave alongside timesheet totals before final pay is processed.
This content is for general information only, may not be fully up to date, and is provided without any warranty or liability.
High Performer
G2
Summer 2026
Best Ease Of Use
Capterra
Summer 2026
Rated in the top time trackers across G2, Capterra, and TrustRadius — with consistent praise for ease of use, integrations, and support.
Indian wage payment rules set a maximum wage period of one month, so payroll should convert annual salary into monthly payroll amounts before applying deductions. Annual income still matters for salary TDS because income tax uses annual taxable income, regime choice, eligible declarations, rebate, surcharge if any, and cess.
For individual salaried taxpayers, the Section 115BAC new tax regime is the default regime. Eligible taxpayers may opt out and use the old regime under Income Tax Department rules. The selected regime changes slab rates, available deductions, and the final salary TDS amount, so the calculator needs that input before estimating take-home pay.
EPF is generally calculated on basic wages, dearness allowance including cash value of food concession, and retaining allowance for covered employees. Statutory contributions are limited to the amount payable on INR 15,000 per month when a covered member's monthly pay exceeds that amount, unless a higher contribution is allowed by joint request.
Employees' State Insurance generally applies to covered employees with monthly wages up to INR 21,000. The employee contribution is 0.75%, and the employer contribution is 3.25%. Once the wage input is outside the applicable eligibility rule, the calculation should stop deducting employee ESI instead of showing it as a standard deduction for every salary.
Employer EPF increases employer payroll cost and does not reduce employee net pay. For covered employees, the employer contribution generally matches the employee contribution at 12%, and 8.33% of the employee's pay is remitted to the Employees' Pension Fund where EPS applies. Employee EPF is the deduction that reduces take-home pay.
Everhour Time Off tracks vacations, sick leave, holidays, and custom leave types with full-day, partial-day, and custom-period entries. Approved time off can flow into team timesheet totals, so payroll reviewers can separate paid leave from worked time before checking monthly pay inputs.
Everhour Reporting turns logged time, time off, costs, and project data into customizable reports with filters, date ranges, grouping, and CSV, Excel/XLSX, or PDF exports. Payroll reviewers can keep an audit-ready file of approved hours and leave totals for the pay period.
Track approved leave, hours, and payroll review totals in Everhour so monthly pay checks start from cleaner records and fewer last-minute corrections.
14-day free trial · No credit card · Cancel anytime
