CTC to In-Hand Salary

Your CTC (cost to company) is everything your employer spends on you in a year — including employer PF and gratuity you never see in a payslip. In-hand salary is what actually reaches your bank account after PF, income tax and professional tax. Enter your CTC above to see the exact monthly figure.

The calculator uses FY 2025-26 (AY 2026-27) slabs for both the new and old regimes, deducts employee PF at 12% of your PF wages, and applies your state's professional tax month by month — so Maharashtra's ₹300 February instalment and Gujarat's flat ₹200 both come out right.

How is in-hand salary calculated from CTC?

Two steps. First, strip out the parts of CTC that never reach a payslip: gross salary = CTC − employer PF − gratuity provision. Then take the payslip deductions off that: in-hand = gross − employee PF − income tax − professional tax. Employer and employee PF are each 12% of PF wages (basic salary, or ₹15,000/month if you apply the statutory ceiling), and the gratuity provision is 4.81% of basic.

Worked example — a ₹12,00,000 CTC with basic at 40%, employer PF inside CTC, no gratuity component, new regime, working in Gujarat. Basic = ₹4,80,000. Employer PF = 12% × ₹4,80,000 = ₹57,600, so gross salary = ₹12,00,000 − ₹57,600 = ₹11,42,400. Employee PF is another ₹57,600. Taxable income = ₹11,42,400 − ₹75,000 standard deduction = ₹10,67,400, which is under the ₹12 lakh §87A rebate limit, so income tax is ₹0. Gujarat professional tax is ₹200 × 12 = ₹2,400. In-hand = ₹11,42,400 − ₹57,600 − ₹0 − ₹2,400 = ₹10,82,400 a year, or ₹90,200 a month.

How to use this calculator

• Enter your annual CTC — the total package figure from your offer letter, not your gross salary.
• Set the basic percentage. Most Indian employers keep basic at 40–50% of CTC; check your offer breakup and match it, because PF and gratuity are both derived from basic.
• Pick your tax regime. The new regime is the default from FY 2023-24 onwards; switch to old only if you actually claim 80C, 80D, HRA or home-loan interest, then enter the total you claim.
• Tick 'Employer PF is part of CTC' if your offer letter lists the employer's PF contribution inside the package — most Indian offers do. Untick it if PF is paid over and above CTC.
• Tick the gratuity box only if your breakup shows a gratuity line inside CTC, and the ₹15,000 ceiling box if your employer restricts PF to the statutory minimum wage base.
• Choose your work state so the right professional tax slab applies, then open the breakdown table to see every rupee accounted for.

Why your in-hand is lower than you expected

CTC inflates your package with money you never receive as cash. Employer PF (12% of basic) goes into your EPF account, the gratuity provision only pays out after five years of service, and many companies also load insurance premiums, meal cards and a variable/bonus component into the headline figure. On a typical ₹12 lakh CTC, roughly ₹1.15 lakh a year disappears into PF alone — it is still your money, but it is locked until retirement or a job change.

Two levers genuinely change your monthly cash. A lower basic percentage shrinks both PF contributions and raises take-home, though it also shrinks your retirement corpus and gratuity — and asking for the ₹15,000 PF wage ceiling does the same thing legally. On tax, run both regimes here before your employer's January declaration deadline: with the ₹75,000 standard deduction and the ₹12 lakh §87A rebate, the new regime leaves most salaried people under ₹13 lakh gross paying zero tax, and you need well over ₹4 lakh of genuine deductions before the old regime catches up.

Frequently asked questions