📉 B. Deductions Components
| Components | Description | Excel Formula |
|---|---|---|
| 1. ESI (Employee) | ESI is governed by the State Government and calculated as 0.75% of Gross Salary. Condition: Not applicable if Gross Salary exceeds ₹21,000. |
IF(Gross < 21001, Gross × 0.75%, 0) |
| 2. PF (Employee) | PF is part of a central government social security scheme. It is calculated as 12% of (Gross – HRA). Note: If (Gross – HRA) exceeds ₹15,000, PF is capped at ₹1,800/month. |
IF((Gross – HRA) < 15001, (Gross – HRA) × 12%, 1800) |
| 3. Professional Tax (PT) | PT is a state-imposed fixed monthly deduction based on salary slabs. Example: In Karnataka, if Gross Salary > ₹24,999, PT = ₹200; otherwise PT = ₹0. |
Fixed rate as per state slab |
| 4. Net Pay | Also called In-Hand Salary or Take-Home Salary. Calculated by subtracting all deductions (PF, ESI, PT, Income Tax, etc.) from Gross Salary. |
Gross – Total Deductions |
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