Indian Payslip & Salary Slip Generator

The Provident Fund (PF) is a social security and retirement savings scheme for Indian employees. Employees contribute 12% of their basic salary, and employers contribute an equal amount (12%). The total 24% goes into your PF account, which you can withdraw after leaving employment or at retirement. Employers also contribute 8.33% as employer pension obligation (EPO).

ESI is mandatory for employees earning up to ₹21,000/month (as of FY 2025-26). The employee contributes 0.75% of wages, and the employer contributes 3.25%. ESI provides health and disability benefits, including medical treatment, disability benefits, and cash benefits during illness or injury.

HRA is calculated at 40% of basic salary in metro cities (Delhi, Mumbai, Bangalore, Kolkata) and 50% in non-metro cities. HRA is taxable under Section 10(13A) if actual rent paid exceeds the following limit: (HRA or 10% of salary, whichever is lower). Some employers provide HRA differently based on company policy; this tool uses standard percentages.

Tax Deducted at Source (TDS) is income tax deducted directly from your salary by your employer. It's calculated based on your annual gross salary using progressive tax slabs under either the Old or New Tax Regime. For FY 2025-26, the Old Regime has 7 tax slabs (0%, 5%, 20%, 30%), while the New Regime has 8 slabs with a lower tax burden. The tax is calculated monthly and deducted from your net salary.

The Old Tax Regime allows deductions under sections like 80C (investments, life insurance, PPF, home loan principal), 80D (health insurance), 80CCD(1B) (NPS), and 24(b) (home loan interest). The New Tax Regime offers lower tax rates but doesn't allow most deductions. High-income earners with significant investments typically benefit from the Old Regime, while others may prefer the New Regime for simplicity and lower tax rates.

Professional Tax is a state-level tax levied on professionals and employees. It varies by state: in Tamil Nadu, it's ₹0-2,400 annually; in Maharashtra, it's ₹0-2,500; in Delhi, it's ₹0-2,500. Self-employed professionals and salaried employees above a certain income threshold must pay PT. Rates depend on your profession and state.

Gratuity is a lump-sum payment made by employers to employees at retirement or separation. For regular employees: eligibility requires 5 years of continuous service. For fixed-term employees: eligibility is 1 year. The gratuity is calculated as: (15/26) × (Basic + DA) × Years of Service. Maximum gratuity is ₹20 lakhs as per law. This tool estimates your gratuity for informational purposes.

Yes, under the Old Tax Regime. Section 80C allows deductions up to ₹1.5 lakhs/year for: Life Insurance Premiums, EPF contributions, PPF deposits, ELSS mutual funds, home loan principal repayment, and tuition fees. Additionally, Section 80CCD(1B) allows ₹50,000 extra deduction for NPS (National Pension System) contributions. These deductions reduce your taxable income, lowering your TDS.

Section 87A rebate applies to individuals with taxable income up to ₹5 lakhs under the New Tax Regime. If your tax liability is less than ₹12,500, you get a full rebate (i.e., zero tax). This is automatically calculated in this tool and significantly reduces tax for lower-income earners.

Net Salary = Gross Salary - Total Deductions. Gross Salary includes Basic + HRA + DA + TA + Medical + Special + Other Allowances. Total Deductions include PF, ESI, PT, TDS, Advance/Loan Recovery, and Other Deductions. The net salary is what you actually receive in your bank account each month.