In-Hand Salary Calculator

Why CTC is not your salary

Cost to Company is everything the employer spends on you in a year: your gross salary plus the employer’s share of provident fund, gratuity provision, insurance premiums and sometimes even food coupons or a joining bonus. None of those extras reach your bank account each month. In-hand (or take-home) salary is what remains after the employer-side items are removed and your own deductions are taken out. The gap between the two is frequently 15–25%, which is why an offer of ₹12 lakh CTC typically lands as roughly ₹85,000–90,000 a month.

How this calculator works

Start with the annual CTC and the basic salary percentage from your offer letter. The calculator then:

• Computes employer PF as 12% of basic (or of ₹15,000 if your company limits PF to the statutory ceiling) and removes it from CTC.
• Optionally removes the gratuity provision of 4.81% of basic if your CTC includes it.
• Treats the remainder as gross salary, of which everything other than basic is allowances such as HRA, special allowance or LTA.
• Deducts your own PF contribution (equal to the employer’s), professional tax, and income tax computed with the current slabs, standard deduction and cess.

The result is your annual and monthly in-hand pay with a line-by-line breakup you can compare with a payslip.

Understanding each deduction

Employee PF is 12% of basic and goes into your EPF account; it is not lost, just locked until withdrawal or retirement. Professional tax is a state levy, capped at ₹2,500 a year; states like Maharashtra, Karnataka, West Bengal and Telangana charge it, while Delhi, Uttar Pradesh, Haryana and Rajasthan do not. Income tax is deducted at source by your employer each month based on your declared regime and investments; the calculator uses the new regime by default and lets you switch to the old regime with additional deductions such as HRA exemption or 80C investments.

Why basic percentage matters

A higher basic increases PF and gratuity, which reduces monthly cash but builds retirement savings. It also raises HRA eligibility. Many employers fix basic at 40–50% of CTC; the new labour codes require basic plus DA to be at least 50% of total pay, which is why several companies have restructured salaries recently. Move the slider to see how the same CTC changes your take-home.

Example

For a ₹12 lakh CTC with 50% basic, PF on full basic and the new regime: employer PF is ₹72,000, gross salary ₹11.28 lakh, employee PF ₹72,000, professional tax ₹2,400 and income tax nil because taxable income stays below the ₹12 lakh rebate threshold. In-hand comes to about ₹87,800 a month. At ₹20 lakh CTC the same structure yields roughly ₹1.33 lakh a month after about ₹1.67 lakh of annual tax.

Negotiating an offer

Ask for the salary structure, not just the CTC number. Check whether variable pay is included and how much is guaranteed, whether gratuity and insurance are inside the CTC, and whether PF is on full basic. Two offers with identical CTC can differ by several thousand rupees a month.

Frequently asked questions