Understanding Compensation Breakup in Chennai: How to Calculate Your Take-Home Pay?

I would like to know clear information about the Compensation Breakup head and its calculation methods. I am in Chennai (metro). We have components like Basic, HRA, Special Allowance, Conveyance Allowance, Medical Allowance, and PF; in case of ESI, we add that too.

Please let me know how to arrive at the values by using the percentages that are allowed/approved as per the law. Please do share such law information for reference.

If you could send it in Excel, that would be really great because I am planning to create a calculator to know the exact take-home pay, which will help me during salary negotiations.

Regards

Dear Ramesh, please calculate the total earnings and, after the deductions in your salary, what you are getting (e.g., after PF and ESI) only, plus any statutory deductions like Professional Tax or State Welfare Fund, etc.

Tax Exemptions on Salary Components

You want to know how the breakups like Conveyance, Medical, and HRA are from your tax perspective. Medical ₹1250 per month is exempted from the deduction of tax. Conveyance ₹1600 per month is exempted from tax. HRA also comes under the exemption of payable tax.

Regards,
Mohandas M