Free Gross-Pay Calculator 2026

Most Indian private-sector companies use the fixed 30-day method — it gives a constant per-day rate regardless of whether the month has 28, 30 or 31 days. This is the default in payroll products like RazorpayX, Zoho Payroll and greytHR. Government and PSU employers typically follow the calendar-day method aligned with the Payment of Wages Act, 1936. Manufacturing and factory roles often use working-day basis (excluding weekly offs). Check your appointment letter or HR policy document to confirm which method your company follows.

Yes. The fixed 30-day method is widely accepted across Indian payroll practice and is documented by hinote.in as the dominant industry standard. While the Payment of Wages Act, 1936 references wage-period computation (which maps to calendar days), the fixed-30 approach is not prohibited and is used by the majority of IT, services and startup companies. Courts have generally upheld employer-chosen proration methods as long as they are consistently applied and documented in the employment contract.

LOP days are unauthorised absences or leave without pay. To calculate: determine the per-day rate (Monthly Gross ÷ Basis Days), then multiply by the number of LOP days to get the deduction. For example, if your gross is ₹60,000 on fixed-30 basis and you have 2 LOP days: deduction = ₹60,000 ÷ 30 × 2 = ₹4,000. Your prorated gross becomes ₹56,000. In our calculator, select “LOP / Absent” as recipient type and set payable days = total days minus LOP days.

Under the Factories Act, 1948 (Section 59), overtime must be paid at twice (2×) the ordinary rate of wages for hours worked beyond 9 hours in a day or 48 hours in a week. The Shops & Establishments Acts of most states also mandate 2× OT. Our calculator computes OT as: (Monthly Gross ÷ Basis Days ÷ 8 hours) × 2 × OT Hours. Note that some companies pay OT at 1.5× by internal policy — verify with your HR team which multiplier applies to your role.

The PAN-on-file status does not change your gross pay amount. However, it affects TDS (Tax Deducted at Source) deduction. If PAN is not on file, the employer must deduct TDS at a higher rate (20% instead of the applicable slab rate) under Section 206AA of the Income Tax Act. Our calculator includes a compliance advisory that checks PAN status — this is informational only and does not alter the gross pay computation.

The calendar-day method divides monthly gross by the actual number of days in the month (28, 29, 30 or 31). Every calendar day has equal value including weekends and holidays. The working-day method divides only by business days (typically 22-26 per month, excluding weekly offs and holidays). Working-day gives a higher per-day rate but only counts days you actually worked. Example: ₹60,000 gross in a 31-day month with 22 working days → Calendar per-day = ₹1,935 vs Working per-day = ₹2,727.

Gross pay includes all earnings before deductions: Basic Salary + Dearness Allowance (DA) + House Rent Allowance (HRA) + Conveyance Allowance + Medical Allowance + Special Allowance + LTA + any other fixed allowances. It does NOT include employer-side contributions like employer EPF (12%), employer ESI (3.25%), or gratuity provision — those are part of CTC but not gross pay. Variable pay and bonuses may or may not be included depending on whether they are part of the monthly salary structure.

Offer letters show CTC (Cost to Company), which includes gross pay PLUS employer contributions (EPF 12%, ESI 3.25%, gratuity 4.81%, insurance, etc.). Our calculator computes gross pay only — the amount before employee-side deductions. The difference between CTC and gross is typically 15-25% depending on your salary structure. Additionally, offer letters may use a different proration method or include annual components (bonus, LTA) that are not part of monthly gross.