How to do the reverse salary calculation for CTC or Net Pay

How to do the reverse salary calculation for CTC or Net Pay

Salary Calculation

Whether you belong to Talent Acquisition, Finance, HR, Temp Staffing or an Individual. This online excel calculator for how to do the reverse salary calculation will help you increase your efficiency to work faster.

Reverse Salary Calculator

Why you need the Salary Calculator?

Man thinking
How to Calculate Salary?

You often came across the situation where you want to calculate candidate’s/Employee Salary either by CTC or by Net Pay and wonder how to do the reverse salary calculation for CTC or Net Pay.

The calculation totally depends upon the company pay structure and compensation philosophy, however, it has all the necessary items including Income Tax calculation also. The Reverse Salary Calculator is useful for any industry, you can use it for your industry/ company as well. It does not have any statutory obligation, you can modify it as per your needs.

Hers is the tool to calculate “CTC(Cost to the company) basis Net Pay” or CTC basis Net Pay”.

What is not included in it?

Employer Part

It does not include additional employer pay heads like Leave Encashment, Gratuity, Medical Insurance, Office Furniture Cost, etc. As per the market survey, it is not a good practice to include these items into the CTC structure. While including these items in CTC sometimes misleads the discussion with the prospective candidate. Nowadays candidates are also aware that these items are included for some savings, “show the big picture to the candidate and hire them”. However, if you want to include them, then you need to modify the excel accordingly.

Employee Part

Deduction items like Labor Welfare Fund and other deductions are not included, these are state-specific deductions. However, you can manually fill in the professional tax amount and other deductions.


HRA Allowance is considered 50% of the Basic salary to get the right tax exemption for rent paid. It is based on the best practice that industries have, however, there are no statutory obligations to it. However, you can change manually.

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