Salary / CTC Calculator
TaxCalculate your in-hand monthly salary from CTC in India. Breaks down basic, HRA, PF, professional tax, income tax TDS to show your net take-home pay.
₹
Basic (% of CTC)
%
30%70%
HRA (% of Basic)
%
0%100%
Tax Regime
Professional Tax (monthly)
₹
0 ₹300 ₹
₹
Monthly In-Hand
₹0
Annual In-Hand
₹0
Monthly TDS
₹0
Monthly PF
₹0
Monthly HRA
₹0
Monthly Breakdown
Gross Salary₹93,276
+Basic Salary₹0
+HRA₹0
+Allowances₹93,276
−PF Deduction₹0
−TDS (Income Tax)₹0
−Professional Tax₹200
= Net In-Hand₹0
What is a Salary?
A Salary / CTC Calculator converts your Annual CTC (Cost to Company) into a detailed monthly in-hand salary breakdown — showing exactly what is deducted for Provident Fund (PF), income tax TDS, professional tax, and employer provisions (PF, gratuity) that are part of CTC but not paid to you monthly.
For Indian salaried employees, understanding the gap between CTC and in-hand salary is critical for financial planning. A ₹12 lakh CTC offer sounds like ₹1,00,000/month — but after employer provisions, employee PF, professional tax, and income tax TDS, the actual monthly in-hand is typically ₹75,000–85,000.
This calculator breaks down a standard Indian salary structure:
- Basic salary (40% of CTC by default — your company's offer letter will specify this)
- HRA (50% of basic for metros, 40% for non-metros)
- Employee PF (12% of basic, deducted from your pay)
- Employer PF + gratuity (removed from CTC before computing gross salary)
- Professional tax (state-level, up to ₹200–300/month)
- Income tax TDS (computed using FY 2025-26 slabs, New or Old Regime)
Pair with the Income Tax Calculator for a detailed regime comparison, and the Home Loan EMI Calculator to check loan eligibility based on your in-hand salary.
How to use this Salary calculator
- Enter your Annual CTC — the number in your offer letter or employment contract.
- Set Basic Salary % — typically 40–50% of CTC; check your offer letter breakdown.
- Set HRA % — typically 40–50% of basic; 50% is standard for metro cities (Mumbai, Delhi, Bengaluru, Chennai).
- Select Tax Regime — New Regime is the default from FY 2023-24.
- Enter Professional Tax — ₹200/month for Maharashtra, Karnataka; ₹0 for Delhi, Haryana, and other non-PT states.
- If using Old Regime, enter your 80C investments for the deduction.
- Results show monthly basic, HRA, PF deduction, TDS, and monthly in-hand (highlighted). Annual in-hand is also shown.
Formula & Methodology
Annual Basic = CTC × Basic % Annual HRA = Basic × HRA % Employee PF (annual)= Basic × 12% [deducted from employee] Employer PF (annual)= Basic × 12% [part of CTC, not paid monthly] Gratuity provision = Basic × 4.81% [part of CTC, accumulated for payout] Gross Salary = CTC − Employer PF − Gratuity Taxable income = Gross − Employee PF − Standard Deduction − other deductions Income Tax TDS = Apply FY 2025-26 slab + cess Monthly In-Hand = (Gross − Employee PF − Prof Tax × 12 − Income Tax) ÷ 12Worked example — ₹12L CTC, 40% basic, New Regime, Maharashtra:Annual Basic = 12L × 40% = ₹4,80,000 → ₹40,000/month Annual HRA = 4.8L × 50% = ₹2,40,000 → ₹20,000/month Employee PF = 4.8L × 12% = ₹57,600 → ₹4,800/month Employer PF = ₹57,600 (in CTC, not in gross) Gratuity = 4.8L × 4.81% = ₹23,088 (in CTC) Gross Salary = 12L − 57,600 − 23,088 = ₹9,19,312/year Taxable income = 9,19,312 − 57,600 − 75,000 = ₹7,86,712 Tax (New Regime)= 0% up to 4L + 5% on 3.86L = ₹19,335 + 4% cess = ₹20,109 Monthly TDS = ₹20,109 ÷ 12 = ₹1,676 Monthly In-Hand = (9,19,312 − 57,600 − 2,400 − 20,109) ÷ 12 = ₹8,39,203 ÷ 12 = ₹69,934
Frequently Asked Questions
What is CTC and how is it different from take-home salary?
CTC (Cost to Company) is the total annual amount a company spends on an employee — it includes your gross salary plus employer contributions like employer PF (12% of basic), gratuity provision (4.81% of basic), and sometimes group health insurance. Your take-home (in-hand) salary is CTC minus all deductions: employee PF (12% of basic), income tax TDS, professional tax, and other deductions. For a ₹12 lakh CTC package, in-hand monthly salary typically ranges from ₹75,000 to ₹90,000 depending on the structure and tax regime.
What percentage of CTC is basic salary in India?
Basic salary typically ranges from 35–50% of CTC in Indian companies. It varies by company policy: IT companies often set basic at 40–50%; startups may set it lower (30–35%) to reduce PF liability; PSUs and government jobs set basic higher (50–60%). Basic salary matters because it is the base for computing PF (12% of basic), HRA (typically 40–50% of basic), and gratuity (4.81% of basic). A lower basic means lower PF deduction and higher in-hand, but also lower retirement corpus.
How is Employee Provident Fund (EPF/PF) deducted?
Employee PF contribution is 12% of basic salary, deducted from your monthly gross pay. The employer also contributes 12% of basic — but this goes into your PF account (8.33% as EPS for pension, 3.67% as EPF) and is factored into your CTC. For a basic salary of ₹40,000/month: Employee PF = ₹4,800/month deducted from your pay; Employer PF = ₹4,800/month added to your PF account but not paid to you directly. Both contributions go into your EPF account at EPFO.
What is professional tax and how much is it?
Professional tax is a state-level tax levied on income from employment, business, or profession. Maximum is ₹2,500/year (₹200–300/month). Not all states levy it: states with professional tax include Maharashtra (₹200/month above ₹10,000 salary), Karnataka (₹200/month), Andhra Pradesh, Telangana, West Bengal, Madhya Pradesh. Delhi, Haryana, Rajasthan, and several other states do not levy professional tax. It is collected by the employer and remitted to the state government.
What is HRA and when is it exempt from tax?
HRA (House Rent Allowance) is a salary component given to employees for renting accommodation. Under the Old Tax Regime, HRA is tax-exempt up to the minimum of: (1) Actual HRA received; (2) 50% of basic salary for metro cities (Mumbai, Delhi, Kolkata, Chennai) or 40% for non-metros; (3) Actual rent paid − 10% of basic salary. Under the New Tax Regime, HRA is fully taxable (no exemption). Employees living in their own house or not paying rent cannot claim HRA exemption even under the Old Regime.
What is gratuity and why is it part of CTC?
Gratuity is a lump sum payment by an employer to an employee upon completion of 5+ years of continuous service (or to the family in case of death/disability). Under the Payment of Gratuity Act, it equals 15 days of last drawn salary × years of service. Companies include the annual gratuity provision (4.81% of basic salary) in the CTC structure — this amount is not paid monthly but accumulates over your tenure. This is why your CTC appears higher than what you actually receive as salary.
How does the new tax regime affect in-hand salary compared to the old regime?
Under the New Regime (FY 2025-26), there are no deductions (no 80C, no HRA exemption, no 80D), but the slab rates are lower and ₹12 lakh taxable income is tax-free. Under the Old Regime, the higher slab rates are offset by deductions. For someone with ₹12L CTC, minimal investments, and no HRA exemption, the New Regime results in significantly lower or zero TDS. For someone with ₹1.5L in 80C, ₹25K in 80D, and substantial HRA exemption at ₹20L CTC, the Old Regime may give lower tax. Use the Income Tax Calculator to compare both for your specific income.
How do I use the Salary Calculator?
Enter your Annual CTC. Adjust the Basic Salary percentage (% of CTC) — check your offer letter for this. Adjust HRA (% of Basic) — typically 40% for non-metros, 50% for metros. Select your Tax Regime. Enter your state's Professional Tax (₹200/month is common in Maharashtra and Karnataka; set to 0 for states that don't levy it). For Old Regime, enter your 80C investments. The result shows monthly basic, HRA, PF deduction, TDS, and in-hand salary.
Why does my in-hand salary not equal CTC ÷ 12?
Because CTC includes employer contributions (employer PF, gratuity provision) that do not appear in your monthly payslip. Employer PF ≈ 12% of basic; gratuity provision ≈ 4.81% of basic. Together these are typically 12–18% of your CTC that are 'paid for you' rather than to you. Additionally, employee PF (12% of basic) is deducted from your gross salary, as are professional tax and income tax TDS. This is why ₹12L CTC yields roughly ₹75,000–85,000 per month in hand rather than ₹1,00,000/month.
What is the EPF ceiling for PF deduction in India?
PF is computed on the statutory wage ceiling of ₹15,000/month. If your basic salary exceeds ₹15,000/month, PF is mandatorily calculated on ₹15,000 only (₹1,800 employee + ₹1,800 employer). However, many companies voluntarily compute PF on actual basic salary if it exceeds the ceiling — this increases both deduction and retirement corpus but reduces take-home. Some companies allow employees to opt for the statutory minimum PF for higher in-hand pay. Check your company's HR policy.
What allowances typically make up the balance of CTC beyond basic and HRA?
Beyond basic and HRA, a typical Indian salary structure includes: Special Allowance (taxable, makes up the remaining CTC after all defined components — often the largest component in IT companies); LTA (Leave Travel Allowance, tax-exempt for actual travel costs twice in 4 years under Old Regime); Food Allowance (₹50/meal/day, 2 meals, tax-exempt under Old Regime — rarely used now); Transport Allowance (now merged into standard deduction). The specific allowance breakup is set by each company and detailed in your offer letter and payslip.