Salary Calculator
Bangalore

For Bangalore employees, salary is calculated by deducting EPF (12% of Basic, capped at ₹15,000 base), ESI (0.75% if gross ≤ ₹21,000), Karnataka Professional Tax (₹200/month for salary ≥ ₹25,000), LWF (₹20/half-year), and estimated income tax from the gross salary. The CTC also includes employer contributions like EPF (12%), ESI (3.25%), gratuity (4.81% of Basic), and LWF (₹40/half-year).

As per the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, employees earning ₹25,000 or more per month pay ₹200/month (₹300 in February). Employees earning below ₹25,000 are exempt. The annual maximum is ₹2,500. Employers must register on the e-PRERANA portal and deduct PT from employee salaries monthly.

EPF is mandatory for establishments with 20 or more employees. Both employee and employer contribute 12% of Basic salary each, with the contribution capped at a base of ₹15,000/month (₹1,800/month maximum). Employees earning above ₹15,000 Basic can opt out, but most organisations include EPF as a standard benefit. The employer's 12% is split into EPF (3.67%) and EPS (8.33%).

CTC (Cost to Company) is the total amount the employer spends on you, including gross salary + employer EPF + employer ESI + gratuity + employer LWF. Take-home salary (net salary or in-hand salary) is what you actually receive after deducting employee EPF, ESI, Professional Tax, LWF, and income tax from your gross salary. CTC is always significantly higher than take-home — typically 20-35% higher depending on salary level and deductions.

The New Tax Regime (default from FY 2023-24 onwards) offers lower tax rates across 7 slabs (0% to 30%) with a standard deduction of ₹75,000. Income up to ₹12 lakh is effectively tax-free due to rebate u/s 87A. However, you cannot claim HRA exemption, 80C, 80D, or other deductions. The Old Regime has higher rates but allows these deductions — which is better depends on your salary level and investments. Our calculator lets you compare both.