{"id":2552,"date":"2026-07-29T08:37:21","date_gmt":"2026-07-29T08:37:21","guid":{"rendered":"https:\/\/www.waggex.com\/blog\/?p=2552"},"modified":"2026-07-29T08:37:21","modified_gmt":"2026-07-29T08:37:21","slug":"calculate-payroll-in-india","status":"publish","type":"post","link":"https:\/\/www.waggex.com\/blog\/calculate-payroll-in-india\/","title":{"rendered":"How to Calculate Payroll In India Complete Guide For 2026"},"content":{"rendered":"<p><i><span style=\"font-weight: 400;\">Updated for Tax Year 2026-27. Covers Income Tax Act 2025, new IT regime slabs, Labour Code 2025 changes, and current PF\/ESI\/PT rates. All figures verified from official sources. Consult a qualified CA for your specific situation. This guide is for information purposes.<\/span><\/i><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Payroll in India is not just a salary calculation. Every month, it involves at least five statutory obligations running in parallel PF, ESI, TDS, Professional Tax, and Labour Welfare Fund (in applicable states) each with its own formula, its own deadline, and its own penalties for errors.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you&#8217;re doing payroll for the first time, or cleaning up a process that&#8217;s been done manually for years, this guide is for you and we&#8217;ll walks through every step from how to structure a CTC to how to calculate net take-home after all deductions. We&#8217;ve used a worked example throughout so the formulas are anchored in real numbers, not just theory.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Two regulatory changes in 2025\u20132026 affect payroll calculations directly: the <\/span><b>Labour Codes that came into force on November 21, 2025<\/b><span style=\"font-weight: 400;\"> (which changed how basic salary and allowances must be structured) and the <\/span><b>Income Tax Act 2025 effective from April 1, 2026<\/b><span style=\"font-weight: 400;\"> (which changed TDS slabs and filing forms). Both are covered below.<\/span><\/p>\n<h2><b>Step 1: Understanding CTC and Salary Components<\/b><\/h2>\n<p><b>CTC (Cost to Company)<\/b><span style=\"font-weight: 400;\"> is the total amount a company spends on an employee per year including the employee&#8217;s gross salary, the employer&#8217;s statutory contributions (PF, ESI, gratuity provision), and any other benefits. CTC is not the employee&#8217;s take-home salary.<\/span><\/p>\n<p><b>Typical Salary Components<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Basic Salary. <\/b><span style=\"font-weight: 400;\">The foundation of the salary structure. Statutory contributions PF, gratuity, ESI base are calculated on it. Under the Labour Codes effective November 2025, <\/span><b>basic salary must be at least 50% of the total CTC.<\/b><span style=\"font-weight: 400;\"> Many companies previously kept basic at 30\u201340% to reduce PF liability. That&#8217;s now non-compliant and can trigger EPFO inspection, back contributions, and penalties.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>House Rent Allowance (HRA). <\/b><span style=\"font-weight: 400;\">Typically 40\u201350% of basic (40% for non-metro cities, 50% for metro cities). HRA is partially exempt from tax under the old regime but fully taxable under the new regime.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Special Allowance. <\/b><span style=\"font-weight: 400;\">The flexible residual component whatever CTC remains after basic, HRA, and employer contributions are allocated. Fully taxable. Under the Labour Codes, total allowances cannot exceed 50% of (basic + DA). Excess is treated as part of basic.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Leave Travel Allowance (LTA). <\/b><span style=\"font-weight: 400;\">Tax-exempt under the old regime for actual travel costs twice in four years. Taxable under the new regime.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Employer PF Contribution. <\/b><span style=\"font-weight: 400;\">12% of basic salary, paid by the employer. This is part of CTC but not part of the employee&#8217;s gross salary.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Gratuity Provision. <\/b><span style=\"font-weight: 400;\">Calculated as 4.81% of basic salary per year (shorthand for Basic \u00d7 15\/26). Some companies include this in CTC, some don&#8217;t. Maximum tax-free gratuity is \u20b925 lakh (enhanced in 2024).<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<table>\n<tbody>\n<tr>\n<td><b>The 50% basic rule the most important CTC change in 2026:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">If an employee&#8217;s CTC is \u20b910 lakh, the basic salary must be at least \u20b95 lakh annually (\u20b941,667\/month). If basic is currently below 50% of CTC in your payroll, restructuring is needed before EPFO inspection not after. Back-dated PF shortfalls attract 12% interest plus Section 14B damages.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p><b>CTC vs Gross Salary vs Net Take-Home The Difference<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>CTC <\/b><span style=\"font-weight: 400;\">= Gross salary + Employer PF + Employer ESI + Gratuity provision + any other employer costs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Gross Salary <\/b><span style=\"font-weight: 400;\">= Basic + HRA + Special Allowance + LTA + any other allowances (what gets paid before deductions)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Net Take-Home <\/b><span style=\"font-weight: 400;\">= Gross Salary \u2212 Employee PF \u2212 Employee ESI \u2212 TDS \u2212 Professional Tax<\/span><\/li>\n<\/ul>\n<h2><b>Step 2: A Complete Worked Example<\/b><\/h2>\n<p><i><span style=\"font-weight: 400;\">Employee: Priya Sharma, Software Developer, BengaluruAnnual CTC: \u20b98,00,000 | Tax regime: New (default)<\/span><\/i><\/p>\n<p>&nbsp;<\/p>\n<ol>\n<li><b> CTC Breakdown (Annual)<\/b><\/li>\n<\/ol>\n<table>\n<thead>\n<tr>\n<th><b>Component<\/b><\/th>\n<th><b>Annual Amount<\/b><\/th>\n<th><b>Monthly Amount<\/b><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Basic Salary (50% of CTC)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b94,00,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b933,333<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">HRA (40% of basic non-metro)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b91,60,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b913,333<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Special Allowance (residual)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b91,60,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b913,333<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Employer PF (12% of basic)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b948,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b94,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Gratuity Provision (4.81% of basic)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b919,240<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b91,603<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Employer ESI (3.25% gross \u2264 \u20b921K)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Not applicable (gross &gt; \u20b921K)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u2014<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Total CTC<\/b><\/td>\n<td><b>\u20b97,87,240 (+ rounded)<\/b><\/td>\n<td><b>\u20b965,603<\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<ol>\n<li><b> Gross Salary<\/b><\/li>\n<\/ol>\n<table>\n<thead>\n<tr>\n<th><b>Component<\/b><\/th>\n<th><b>Annual<\/b><\/th>\n<th><b>Monthly<\/b><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Basic Salary<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b94,00,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b933,333<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">HRA<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b91,60,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b913,333<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Special Allowance<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b91,60,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b913,333<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Gross Salary<\/b><\/td>\n<td><b>\u20b97,20,000<\/b><\/td>\n<td><b>\u20b960,000<\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<ol>\n<li><b> Statutory Deductions<\/b><\/li>\n<\/ol>\n<table>\n<thead>\n<tr>\n<th><b>Deduction<\/b><\/th>\n<th><b>Annual<\/b><\/th>\n<th><b>Monthly<\/b><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Employee PF (12% of basic)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b948,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b94,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Employee ESI<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Not applicable (gross &gt; \u20b921,000\/mo)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u2014<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Professional Tax (Karnataka)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b92,400<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b9200<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">TDS (calculated below Step 5)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b97,500 (approx.)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b9625<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Total Deductions<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b957,900<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b94,825<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<ol>\n<li><b> Net Take-Home<\/b><\/li>\n<\/ol>\n<table>\n<thead>\n<tr>\n<th><\/th>\n<th><b>Annual<\/b><\/th>\n<th><b>Monthly<\/b><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><b>Gross Salary<\/b><\/td>\n<td><b>\u20b97,20,000<\/b><\/td>\n<td><b>\u20b960,000<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Less: Total Deductions<\/span><\/td>\n<td><span style=\"font-weight: 400;\">(\u20b957,900)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">(\u20b94,825)<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Net Take-Home Salary<\/b><\/td>\n<td><b>\u20b96,62,100<\/b><\/td>\n<td><b>\u20b955,175<\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<h2><b>Step 3: Calculating PF (Provident Fund)<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">PF is mandatory for establishments with 20 or more employees. The contribution base is <\/span><b>Basic Salary + Dearness Allowance (DA).<\/b><span style=\"font-weight: 400;\"> Most private sector companies don&#8217;t have a DA component, so PF is calculated on basic salary alone.<\/span><\/p>\n<p><b>Rates<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Employee contribution: <\/b><span style=\"font-weight: 400;\">12% of basic salary + DA<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Employer contribution: <\/b><span style=\"font-weight: 400;\">12% of basic salary + DA, split as:<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>\u00a0\u00a0\u2192 EPS (Employees&#8217; Pension Scheme): <\/b><span style=\"font-weight: 400;\">8.33% of basic, capped at \u20b91,250\/month (i.e., based on wage ceiling of \u20b915,000)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>\u00a0\u00a0\u2192 EPF: <\/b><span style=\"font-weight: 400;\">3.67% (remainder after EPS)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Employer admin charge: <\/b><span style=\"font-weight: 400;\">0.50% of basic salary, paid separately to EPFO<\/span><\/li>\n<\/ul>\n<p><b>Example (Basic = \u20b933,333\/month)<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Employee PF = 12% \u00d7 \u20b933,333 = \u20b94,000\/month<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Employer PF = 12% \u00d7 \u20b933,333 = \u20b94,000\/month<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0\u00a0\u2192 EPS = 8.33% \u00d7 \u20b915,000 (capped) = \u20b91,250<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0\u00a0\u2192 EPF = \u20b94,000 \u2212 \u20b91,250 = \u20b92,750<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Admin charge = 0.5% \u00d7 \u20b933,333 = \u20b9167<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Total employer PF cost = \u20b94,000 + \u20b9167 = \u20b94,167\/month<\/b><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Deposit deadline: 15th of every month<\/b><\/p>\n<p><span style=\"font-weight: 400;\">File the ECR (Electronic Challan cum Return) on the EPFO portal. Late deposits attract 12% per annum interest plus Section 14B damages up to 25% of dues for delays beyond 6 months.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<h2><b>Step 4: Calculating ESI (Employees&#8217; State Insurance)<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">ESI applies to employees whose <\/span><b>gross salary is \u20b921,000\/month or below<\/b><span style=\"font-weight: 400;\"> (\u20b925,000 for employees with disabilities). Once an employee is covered in a contribution period, coverage continues for the full benefit period even if salary temporarily crosses \u20b921,000.<\/span><\/p>\n<p><b>Rates<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Employee contribution: <\/b><span style=\"font-weight: 400;\">0.75% of gross wages<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Employer contribution: <\/b><span style=\"font-weight: 400;\">3.25% of gross wages<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Total: <\/b><span style=\"font-weight: 400;\">4% of gross wages<\/span><\/li>\n<\/ul>\n<p><b>Example (Gross salary = \u20b918,000\/month ESI applicable)<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Employee ESI = 0.75% \u00d7 \u20b918,000 = \u20b9135\/month<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Employer ESI = 3.25% \u00d7 \u20b918,000 = \u20b9585\/month<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Total ESI contribution = \u20b9720\/month<\/b><\/li>\n<\/ul>\n<p><i><span style=\"font-weight: 400;\">Note: In our main worked example (Priya&#8217;s gross = \u20b960,000\/month), ESI does not apply. It would only apply to employees earning \u20b921,000 or below.<\/span><\/i><\/p>\n<p>&nbsp;<\/p>\n<table>\n<tbody>\n<tr>\n<td><b>ESI deposit deadline: 15th of every month<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Half-yearly returns: 11 October (April\u2013September) and 11 April (October\u2013March). Late payment attracts 12% per annum simple interest.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<h2><b>Step 5: Calculating TDS on Salary<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">TDS on salary is governed by the <\/span><b>Income Tax Act 2025, effective from April 1, 2026.<\/b><span style=\"font-weight: 400;\"> The employer estimates each employee&#8217;s annual income at the start of the year, calculates the total tax liability, and deducts an equal monthly amount. If the employee&#8217;s income changes mid-year, the monthly TDS is adjusted.<\/span><\/p>\n<p><b>The Two Tax Regimes (Tax Year 2026-27)<\/b><\/p>\n<p><b>New regime (default): <\/b><span style=\"font-weight: 400;\">Lower tax rates, no deductions for HRA, 80C, 80D, LTA, home loan interest. Standard deduction of \u20b975,000 available. This is the default unless the employee specifically opts for the old regime.<\/span><\/p>\n<p><b>Old regime (opt-in): <\/b><span style=\"font-weight: 400;\">Higher tax rates but allows deductions for HRA, 80C (up to \u20b91.5L), LTA, home loan interest, 80D (medical insurance), NPS, etc. Standard deduction \u20b950,000. Employees must submit Form 12BB with investment declarations to claim these.<\/span><\/p>\n<p><b>New Regime Tax Slabs (TY 2026-27)<\/b><\/p>\n<p>&nbsp;<\/p>\n<table>\n<thead>\n<tr>\n<th><b>Annual Taxable Income<\/b><\/th>\n<th><b>New Regime Rate<\/b><\/th>\n<th><b>Old Regime Rate<\/b><\/th>\n<th><b>Notes<\/b><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Up to \u20b94,00,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0% (up to \u20b92.5L)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Basic exemption limit<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">\u20b94,00,001\u2013\u20b98,00,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5% (2.5\u20135L)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">New regime has higher basic limit<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">\u20b98,00,001\u2013\u20b912,00,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">10%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">20% (5\u201310L)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">New regime significantly lower here<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">\u20b912,00,001\u2013\u20b916,00,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">15%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">30% (above 10L)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Old regime 30% starts at \u20b910L<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">\u20b916,00,001\u2013\u20b920,00,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">20%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">30%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u2014<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">\u20b920,00,001\u2013\u20b924,00,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">25%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">30%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u2014<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Above \u20b924,00,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">30%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">30%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Same at very high incomes<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Standard Deduction<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b975,000 (salaried)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b950,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">New regime higher standard deduction<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Section 87A Rebate<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b960,000 (income \u2264\u20b912L)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b912,500 (income \u2264\u20b95L)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Salaried: zero tax up to \u20b912.75L gross (new)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Cess<\/span><\/td>\n<td><span style=\"font-weight: 400;\">4% on tax payable<\/span><\/td>\n<td><span style=\"font-weight: 400;\">4% on tax payable<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Health and Education Cess<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p><b>TDS Calculation Priya&#8217;s Example (New Regime)<\/b><\/p>\n<p><i><span style=\"font-weight: 400;\">Annual gross salary: \u20b97,20,000 | Standard deduction: \u20b975,000<\/span><\/i><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Taxable income = \u20b97,20,000 \u2212 \u20b975,000 = \u20b96,45,000<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tax on \u20b96,45,000:<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0\u00a00\u2013\u20b94L = \u20b90<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0\u00a0\u20b94L\u2013\u20b96.45L = 5% \u00d7 \u20b92,45,000 = \u20b912,250<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Total tax before rebate = \u20b912,250<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Section 87A rebate: <\/b><span style=\"font-weight: 400;\">taxable income \u2264 \u20b912L \u2192 rebate up to \u20b960,000. Tax = \u20b912,250 &lt; \u20b960,000 \u2192 <\/span><b>zero tax after rebate<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>TDS = \u20b90\/month for this employee<\/b><\/li>\n<\/ul>\n<p><i><span style=\"font-weight: 400;\">Let&#8217;s also calculate for an employee with higher income to show a non-zero TDS.<\/span><\/i><\/p>\n<p><b>TDS Example 2 Rahul Mehta, CTC \u20b918 lakh, Bengaluru<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Annual Gross Salary (basic + HRA + special allowance) = \u20b914,40,000<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Taxable income (after \u20b975,000 standard deduction) = \u20b913,65,000<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tax calculation:<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0\u00a00\u2013\u20b94L = \u20b90<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0\u00a0\u20b94L\u2013\u20b98L: 5% \u00d7 \u20b94L = \u20b920,000<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0\u00a0\u20b98L\u2013\u20b912L: 10% \u00d7 \u20b94L = \u20b940,000<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0\u00a0\u20b912L\u2013\u20b913.65L: 15% \u00d7 \u20b91.65L = \u20b924,750<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Total tax = \u20b984,750<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">4% Cess = \u20b984,750 \u00d7 4% = \u20b93,390<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Total tax payable = \u20b988,140<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Monthly TDS = \u20b988,140 \u00f7 12 = \u20b97,345\/month<\/b><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<table>\n<tbody>\n<tr>\n<td><b>TDS deposit deadlines:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">7th of every month for the previous month&#8217;s TDS. Exception: March TDS is due by 30th April. File quarterly TDS returns on Form 138 (replaces Form 24Q from Q1 TY2026-27). Issue Form 130 (replaces Form 16) to all employees by 15th June annually. Late TDS deposit: 1.5% per month interest from the date of deduction.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<h2><b>Step 6: Professional Tax (PT)<\/b><\/h2>\n<p><b>Professional Tax is a state-level deduction<\/b><span style=\"font-weight: 400;\"> not all states levy it, and those that do have different slabs and frequencies. The Constitution caps the maximum at \u20b92,500 per year per person. Employers collect it from employee salaries and remit it to the state authority.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Maharashtra: <\/b><span style=\"font-weight: 400;\">\u20b9200\/month for 11 months + \u20b9300 in February = \u20b92,500\/year (for salary above \u20b910,000\/month)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Karnataka: <\/b><span style=\"font-weight: 400;\">Slab-based: \u20b9200\/month for income above \u20b915,000\/month<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>West Bengal: <\/b><span style=\"font-weight: 400;\">Slab-based; \u20b9110\/month for income above \u20b910,001\/month<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Tamil Nadu: <\/b><span style=\"font-weight: 400;\">\u20b9600 half-yearly (\u20b91,200\/year) for income above \u20b921,000\/month<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Delhi: <\/b><span style=\"font-weight: 400;\">\u20b90 Delhi does not levy Professional Tax<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Haryana: <\/b><span style=\"font-weight: 400;\">Slab-based; \u20b9200\/month above certain thresholds<\/span><\/li>\n<\/ul>\n<p><i><span style=\"font-weight: 400;\">Always verify current slabs on your state&#8217;s official PT portal before configuring payroll rates update periodically.<\/span><\/i><\/p>\n<h2><b>Step 7: Loss of Pay (LOP) Deduction<\/b><\/h2>\n<p><b>LOP applies when an employee takes leave beyond their entitled balance<\/b><span style=\"font-weight: 400;\">, or is absent without approval. The deduction formula is:<\/span><\/p>\n<p><b>Daily rate = Gross Monthly Salary \u00f7 Total working days in month<\/b><\/p>\n<p><b>LOP deduction = Daily rate \u00d7 Number of LOP days<\/b><\/p>\n<p><b>Example<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Priya&#8217;s gross monthly salary: \u20b960,000<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Working days in the month: 26<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Days of unauthorised absence: 2<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Daily rate = \u20b960,000 \u00f7 26 = \u20b92,307.69<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>LOP deduction = \u20b92,307.69 \u00d7 2 = \u20b94,615.38<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The denominator 26 or 30 or actual calendar days varies by company policy. <\/span><b>Consistency is what matters.<\/b><span style=\"font-weight: 400;\"> Use the same denominator for the same employee throughout the year. Changing it mid-year creates payslip inconsistencies that generate disputes. Most Indian companies use 26 (for a 5-day week) or 30 (calendar month).<\/span><\/p>\n<h2><b>Step 8: Overtime Calculation<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Under the OSH Code and Factories Act, overtime must be paid at <\/span><b>double the ordinary rate<\/b><span style=\"font-weight: 400;\"> for hours worked beyond the daily\/weekly limit.<\/span><\/p>\n<p><b>Hourly rate = Monthly Basic Salary \u00f7 (26 working days \u00d7 8 hours)<\/b><\/p>\n<p><b>Overtime rate = Hourly rate \u00d7 2<\/b><\/p>\n<p><b>Overtime pay = Overtime rate \u00d7 Number of overtime hours<\/b><\/p>\n<p><b>Example<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Basic salary: \u20b933,333\/month<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Hourly rate = \u20b933,333 \u00f7 (26 \u00d7 8) = \u20b933,333 \u00f7 208 = \u20b9160.25<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Overtime rate = \u20b9160.25 \u00d7 2 = \u20b9320.50<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>10 hours of overtime = 10 \u00d7 \u20b9320.50 = \u20b93,205<\/b><\/li>\n<\/ul>\n<h2><b>Step 9: The Complete Net Salary Formula<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Putting it all together:<\/span><\/p>\n<p><b>Net Salary = Fixed Earnings + Variable Earnings + Arrears + Reimbursements \u2212 LOP Deduction \u2212 Employee PF \u2212 Employee ESI \u2212 TDS \u2212 Professional Tax \u2212 Other Recoveries<\/b><\/p>\n<p><b>Total Employer Cost = Net Salary + Employer PF + Employer ESI + Gratuity Provision + Admin Charges<\/b><\/p>\n<p>&nbsp;<\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Full payroll run for Priya (\u20b98L CTC, no LOP, no OT, new tax regime, Bengaluru):<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Gross salary: \u20b960,000 | Employee PF: \u20b94,000 | ESI: Not applicable | TDS: \u20b90 (below rebate threshold) | PT (Karnataka): \u20b9200 | Net take-home: \u20b955,800\/month<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Employer&#8217;s total cost: \u20b960,000 gross + \u20b94,167 employer PF + \u20b91,603 gratuity provision = \u20b965,770\/month<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<h2><b>Monthly Payroll Compliance Calendar<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Here&#8217;s every statutory deadline in one place.<\/span><\/p>\n<p>&nbsp;<\/p>\n<table>\n<thead>\n<tr>\n<th><b>Deadline<\/b><\/th>\n<th><b>Obligation<\/b><\/th>\n<th><b>Action Required<\/b><\/th>\n<th><b>Penalty for Missing<\/b><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">7th monthly<\/span><\/td>\n<td><span style=\"font-weight: 400;\">TDS deposit<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Pay TDS deducted in previous month via Challan 281<\/span><\/td>\n<td><span style=\"font-weight: 400;\">1.5% per month interest from date of deduction<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">30th April only<\/span><\/td>\n<td><span style=\"font-weight: 400;\">March TDS<\/span><\/td>\n<td><span style=\"font-weight: 400;\">March&#8217;s TDS deposit extended deadline (not 7th April)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Same 1.5%\/month if delayed<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">15th monthly<\/span><\/td>\n<td><span style=\"font-weight: 400;\">PF contribution<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Pay employer + employee PF share; file ECR on EPFO portal<\/span><\/td>\n<td><span style=\"font-weight: 400;\">12% p.a. + up to 25% damages under Section 14B<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">15th monthly<\/span><\/td>\n<td><span style=\"font-weight: 400;\">ESI contribution<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Pay employer (3.25%) + employee (0.75%) to ESIC<\/span><\/td>\n<td><span style=\"font-weight: 400;\">12% p.a. simple interest<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">31 Jul\/31 Oct\/31 Jan\/31 May<\/span><\/td>\n<td><span style=\"font-weight: 400;\">TDS quarterly return<\/span><\/td>\n<td><span style=\"font-weight: 400;\">File Form 138 (replaces Form 24Q from Q1 TY2026-27)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b9200\/day under Section 234E<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">11 April \/ 11 Oct<\/span><\/td>\n<td><span style=\"font-weight: 400;\">ESI half-yearly return<\/span><\/td>\n<td><span style=\"font-weight: 400;\">File half-yearly ESIC return for Apr\u2013Sep and Oct\u2013Mar<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Penalty for late filing<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">15 June (annual)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Form 130 \/ TDS cert.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Issue Form 130 (replaces Form 16) to all employees<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b9500\/day + legal exposure<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Varies by state<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Professional Tax<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Monthly or half-yearly PT remittance per state rules<\/span><\/td>\n<td><span style=\"font-weight: 400;\">State-specific fines<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p><i><span style=\"font-weight: 400;\">Sources: EPFO portal, ESIC portal, Income Tax Act 2025, Code on Wages (Central) Rules 2026. Verify current rates on official government portals before filing. Consult a CA for specific situations.<\/span><\/i><\/p>\n<h2><b>Common Payroll Calculation Errors and How to Avoid Them<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Basic salary below 50% of CTC. <\/b><span style=\"font-weight: 400;\">The single most common compliance gap after the Labour Codes. Triggers EPFO inspection and back-dated PF liability.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Calculating ESI on basic salary instead of gross wages. <\/b><span style=\"font-weight: 400;\">ESI applies to gross wages basic + HRA + all allowances. Using only basic understates ESI and creates a shortfall.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Not adjusting TDS when salary changes mid-year. <\/b><span style=\"font-weight: 400;\">A salary revision in October means the annual income estimate changes. TDS must be recalculated and the remaining monthly TDS adjusted not left at the original rate.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Missing the March TDS extended deadline. <\/b><span style=\"font-weight: 400;\">March TDS is due April 30, not April 7. This confuses many HR teams and results in late-payment interest every year.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Using different LOP denominators for the same employee. <\/b><span style=\"font-weight: 400;\">26-day basis one month, 30-day basis the next, creates payslip inconsistency and employee disputes.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>PT not configured for actual work location. <\/b><span style=\"font-weight: 400;\">An employee working from a Bengaluru office of a Delhi-registered company pays Karnataka PT, not Delhi (where PT is zero). PT follows the work location, not the company registration.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Gratuity not provisioned in CTC. <\/b><span style=\"font-weight: 400;\">Gratuity is a statutory obligation after 5 years. Businesses that don&#8217;t provision for it monthly find a large liability appearing suddenly when employees complete 5 years.<\/span><\/li>\n<\/ul>\n<h2><b>How Waggex Handles Payroll Calculations<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">We want to be clear about the intent of this section: it&#8217;s about how a connected payroll system changes the calculation process, not about selling Waggex. Everything described above can be done manually. The question is whether manual calculations consistently produce accurate results and for most businesses with more than 20 employees, the honest answer is: not reliably.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In <\/span><a href=\"https:\/\/www.waggex.com\/payroll-management\"><span style=\"font-weight: 400;\">Waggex&#8217;s payroll module<\/span><\/a><span style=\"font-weight: 400;\">, salary structures are configured once with the correct components basic, HRA, special allowance following the 50% rule. PF is calculated automatically on the correct base. ESI applicability is checked each month against the \u20b921,000 threshold and switches off automatically when an employee&#8217;s gross exceeds it. PT is configured by work location, not company registration.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The most important connection is between <\/span><a href=\"https:\/\/www.waggex.com\/attendance-management\"><span style=\"font-weight: 400;\">attendance<\/span><\/a><span style=\"font-weight: 400;\"> and payroll. When attendance is tracked in the same system through <\/span><a href=\"https:\/\/www.waggex.com\/geo-location-attendance\"><span style=\"font-weight: 400;\">GPS check-in<\/span><\/a><span style=\"font-weight: 400;\"> or <\/span><a href=\"https:\/\/www.waggex.com\/selfie-attendance\"><span style=\"font-weight: 400;\">FaceLens selfie verification<\/span><\/a><span style=\"font-weight: 400;\"> LOP deductions calculate automatically from the verified attendance record. Overtime flagged in real time from shift data feeds into overtime pay without manual entry. The attendance record doesn&#8217;t need to be manually transferred into payroll before the salary run.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">TDS calculates monthly from the annual income estimate per employee, with adjustment when salary revisions happen. <\/span><a href=\"https:\/\/www.waggex.com\/tax-form-management\"><span style=\"font-weight: 400;\">Tax and Forms Management<\/span><\/a><span style=\"font-weight: 400;\"> generates Form 138 (quarterly TDS returns) and Form 130 (employee TDS certificates) in filing-ready format. <\/span><a href=\"https:\/\/www.waggex.com\/reminder-management\"><span style=\"font-weight: 400;\">Reminder Management<\/span><\/a><span style=\"font-weight: 400;\"> sends alerts before the 7th (TDS), 15th (PF\/ESI), and quarterly filing deadlines so nothing is missed because someone forgot what month it was.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">None of this replaces a CA for complex situations a senior employee with multiple income sources, a mid-year salary revision affecting TDS significantly, or a final settlement calculation. But for the routine monthly payroll calculation for 10\u2013200 employees with standard salary structures, an automated system produces more consistent results than manual calculation, with less time and less risk of the errors listed above. For more on this, our <\/span><a href=\"https:\/\/www.waggex.com\/blog\/manage-payroll-in-a-small-business\/\"><span style=\"font-weight: 400;\">guide to managing payroll in a small business<\/span><\/a><span style=\"font-weight: 400;\"> covers the full monthly process in practical terms.<\/span><\/p>\n<h2><b>The Bottom Line<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Payroll calculation in India involves six or seven distinct calculations running in parallel every month CTC structure, gross salary, PF, ESI, TDS, PT, LOP each with its own rules, its own thresholds, and its own deadlines. The calculation itself isn&#8217;t technically complex. What makes it difficult is doing it correctly, consistently, for every employee, every month, without missing a deadline or letting a mid-year change fall through the gap.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The formulas in this guide are verified and current as of July 2026. Two things to do before your next payroll run: check that your basic salary is at least 50% of CTC per the Labour Code, and confirm whether your TDS calculations are using the correct new-regime slabs and the \u20b975,000 standard deduction. Those two points catch the most common errors in Indian payroll right now.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you&#8217;d like to see how automated payroll calculation works in practice, <\/span><a href=\"https:\/\/app.waggex.com\/signup\"><span style=\"font-weight: 400;\">Waggex&#8217;s free trial<\/span><\/a><span style=\"font-weight: 400;\"> gives you full access salary structure, PF\/ESI\/TDS automation, attendance-to-payroll connection and no credit card required.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Updated for Tax Year 2026-27. Covers Income Tax Act 2025, new IT regime slabs, Labour Code 2025 changes, and current PF\/ESI\/PT rates. All figures verified from official sources. Consult a qualified CA for your specific situation. This guide is for information purposes. &nbsp; Payroll in India is not just a salary calculation. Every month, it&hellip;&nbsp;<\/p>\n","protected":false},"author":3,"featured_media":2597,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"off","neve_meta_content_width":70,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","neve_meta_reading_time":"","_themeisle_gutenberg_block_has_review":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2552","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-attendance-management-system-waggex"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.0 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How to Calculate Payroll In India Complete Guide For 2026<\/title>\n<meta name=\"description\" content=\"Learn how to calculate payroll in India for 2026, including salary, PF, ESI, TDS, bonuses, deductions, and payroll compliance step by step.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.waggex.com\/blog\/calculate-payroll-in-india\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to Calculate Payroll In India Complete Guide For 2026\" \/>\n<meta property=\"og:description\" content=\"Learn how to calculate payroll in India for 2026, including salary, PF, ESI, TDS, bonuses, deductions, and payroll compliance step by step.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.waggex.com\/blog\/calculate-payroll-in-india\/\" \/>\n<meta property=\"og:site_name\" content=\"Waggex Blog | Payroll, HR &amp; 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