Indian payroll runs through TDS, EPF, and ESI rules. Everhour keeps approved work hours 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.
A salary calculation in India answers three practical questions: gross pay for the wage period, employee take-home pay after payroll deductions, and employer cost after statutory employer contributions. Indian wage payment rules do not allow a wage period longer than one month, so an annual salary must be converted into a monthly figure before payroll treatment.
The main inputs are monthly gross salary, taxable salary after permitted declarations, income-tax regime, EPF coverage, EPF wage cap treatment, and ESI wage eligibility. TDS on salary uses employee Form 12BB claim details, and the employer later issues Form 16 showing salary, deductions, exemptions, and tax deducted.
For individual salaried taxpayers, the Section 115BAC new tax regime is the default regime, while eligible taxpayers may opt out and use the old regime. For AY 2026-27, the new regime taxes income from 0% up to INR 400,000 through 30% above INR 2,400,000, with a Section 87A rebate up to INR 60,000 for resident individuals when taxable income does not exceed INR 1,200,000.
EPF and ESI change different sides of the calculation. EPF is generally 12% from the employee and 12% from the employer for covered employees, calculated on basic wages, dearness allowance including cash value of food concession, and retaining allowance. ESI generally applies to covered employees with monthly wages up to INR 21,000, at 0.75% employee and 3.25% employer.
Use this structure: monthly gross salary minus employee TDS, employee EPF, and employee ESI equals estimated net salary. Employer payroll cost equals monthly gross salary plus employer EPF and employer ESI. For EPF, a covered member whose monthly pay exceeds INR 15,000 has statutory contributions limited to the amount payable on INR 15,000 unless higher contribution is allowed by joint request.
Take a covered employee with INR 90,000 monthly gross salary and statutory EPF calculated on the INR 15,000 wage cap. Employee EPF is INR 1,800. Annual taxable salary is INR 1,080,000. Under the AY 2026-27 new regime, tax before rebate is INR 48,000, and the Section 87A rebate reduces it to INR 0 for a qualifying resident individual. Estimated monthly net salary is INR 88,200 before nonlisted deductions or allowances.
A one-off salary calculation is enough when you need a quick offer estimate, a monthly gross-to-net check, or a comparison between the new tax regime and old regime using known declarations. It is also enough when the employee has a simple fixed salary, no variable hours, and clear EPF or ESI coverage status.
A managed workflow becomes necessary when payroll depends on approved hours, overtime classification, leave, corrections after submission, or recurring monthly handoff. Everhour Time Tracking captures task and project hours through timers or manual entries, supports approvals and locked periods, and keeps payroll review tied to approved timesheets instead of scattered messages.
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.
Use a monthly wage period for the actual payroll calculation. Indian wage payment rules do not allow a wage period longer than one month, so annual salary works as an input only after conversion to monthly salary. Annual figures still matter for TDS because income tax is assessed on annual taxable income.
Yes, the Section 115BAC new tax regime is the default regime for individual salaried taxpayers. Eligible taxpayers may opt out and use the old regime under Income Tax Department rules. The choice matters because the old regime and new regime use different slab structures and deduction treatment.
The statutory EPF wage cap is INR 15,000 per month. A covered member whose monthly pay exceeds INR 15,000 generally has statutory contributions limited to the amount payable on INR 15,000 unless higher contribution is allowed by joint request. Using full gross salary by default overstates the employee deduction and employer cost.
No. Employees' State Insurance generally applies to covered employees with monthly wages up to INR 21,000. The standard contribution is 0.75% from the employee and 3.25% from the employer. A calculator should treat ESI as a coverage and wage-eligibility input, not as a universal salary deduction.
Mixing annual tax logic with monthly payroll deductions creates wrong take-home figures. TDS uses annual taxable income and employee declarations, while wage payment runs through a permitted monthly wage period. EPF and ESI also use separate coverage and wage-limit rules, so one gross salary number does not produce the full answer by itself.
Everhour Time Tracking records task and project hours through live timers or manual entries, then feeds timesheets and payroll review. Admins can approve submitted time, lock completed periods, send reminders, and configure timer behavior before payroll uses the hours.
Everhour Reporting turns logged time, budgets, costs, and project data into customizable reports with filters, grouping, date ranges, and exports. Payroll or finance teams can download CSV, Excel/XLSX, or PDF reports when they need a review file outside the workspace.
Track approved hours, lock reviewed periods, and give payroll a cleaner source of truth. Everhour keeps time records connected to payroll review.
14-day free trial · No credit card · Cancel anytime
