CTC to in-hand salary calculator
Your CTC is what you cost the company, not what you get. Tell me the CTC and how it’s split, and I’ll show you what lands in your account each month.
Often 40–50%.
Usually 50% in metros, 40% elsewhere.
A year’s target bonus. Left out of monthly in-hand.
Many employers cap PF at the ₹15,000 monthly wage ceiling, which EPFO is reported to be raising to ₹25,000. “Not in CTC”: paid on top, while your own 12% is still deducted.
Monthly in-hand
₹88,268
₹10,59,212 a year
- Annual CTC
- ₹12,00,000
- Variable pay
- ₹0
- Employer PF
- ₹57,600
- Gratuity
- ₹23,088
- Gross salary
- ₹11,19,312
- Your PF
- ₹57,600
- Professional tax
- ₹2,500
- Income tax (with cess)
- ₹0
- In-hand a year
- ₹10,59,212
- Basic, a year
- ₹4,80,000
- HRA, a year
- ₹2,40,000
Income tax is on fixed pay only; variable pay is taxed when it’s paid. In the old regime your PF counts toward 80C and HRA exemption isn’t assumed. Professional tax is approximate; check your state’s slabs.
Estimates for planning, not tax or legal advice. Rules change with each Budget and differ by employer, so check your offer letter, payslip or a professional before you act.
How it’s calculated
The formula
In-hand = gross salary − your PF − professional tax − income tax
Monthly in-hand = in-hand ÷ 12
Worked example
CTC ₹20,00,000 with ₹2,00,000 variable, basic at 40% (₹8,00,000), PF on the ₹15,000 ceiling, gratuity in the CTC, Karnataka, new regime.
- PF wage is capped at ₹15,000 × 12 = ₹1,80,000, so employer PF and your PF are ₹21,600 each.
- Gratuity is 4.81% of ₹8,00,000 = ₹38,480.
- Gross salary = ₹20,00,000 − ₹2,00,000 − ₹21,600 − ₹38,480 = ₹17,39,920.
- Income tax: taxable ₹16,64,920 after the ₹75,000 standard deduction; slab tax ₹1,32,984; with 4% cess ₹1,38,303.
- In-hand = ₹17,39,920 − ₹21,600 − ₹2,500 − ₹1,38,303 = ₹15,77,517 a year, or ₹1,31,460 a month.
The rules
- EPF is 12% of basic from you and 12% from the employer. Many employers pay it only on the first ₹15,000 of monthly basic, the EPF wage ceiling; that ceiling is reported to be moving to ₹25,000.
- Gratuity in a CTC is usually 4.81% of basic (15 days’ pay per year ÷ 26 working days ÷ 12 months). You get it usually after five years of continuous service (one year for fixed-term staff).
- Professional tax is set by each state and capped at ₹2,500 a year by Article 276 of the Constitution. I use an approximate figure: the state’s top slab, charged only above a monthly threshold (₹25,000 in Karnataka, ₹10,000 in Maharashtra, ₹15,000 elsewhere). It’s approximate; check your state’s slabs. Delhi, Haryana, Uttar Pradesh and Rajasthan don’t levy it on salaries.
- Income tax uses the same engine as my income tax calculator: slabs, standard deduction, 87A rebate, surcharge and cess. The Income-tax Act, 2025 applies from tax year 2026-27 and renumbers these sections.
Sources
- EPFO (epfindia.gov.in): contribution rates and the wage ceiling
- Income Tax Department (incometax.gov.in): slabs and deductions
- Each state’s Professional Tax Act schedule, for professional tax
Questions people ask
Why is my in-hand so much lower than CTC ÷ 12?
CTC includes money you don’t get every month: the employer’s PF, gratuity and variable pay. Then your own PF, professional tax and income tax come off the gross. Add them up and the gap is bigger than most people expect, which is why it’s worth running the numbers before you accept an offer.
Is variable pay included in the monthly figure?
No. Variable pay depends on performance and is usually paid quarterly or once a year, so I leave it out of the monthly number. It is taxed in the month it’s paid.
What does ‘PF not in CTC’ mean?
Some employers pay their 12% PF on top of the CTC rather than inside it. Your own 12% is still deducted from your salary, so in-hand is lower than gross, but the CTC isn’t reduced by the employer’s share.
Should I choose the old or new regime?
With few deductions, the new regime usually leaves you more. If you pay high rent, a home loan and invest the full ₹1.5 lakh in 80C, check both with the income tax calculator.
Can I ask for a different CTC structure?
Often, yes. A lower basic means less PF and more cash in hand now, but a smaller PF corpus and gratuity later. A higher HRA helps if you rent and use the old regime. It’s worth asking HR before you sign.
Is gratuity really part of my salary?
It’s part of your CTC, but you receive it usually after five years of continuous service (one year for fixed-term staff), or if you leave due to death or disability. If you leave sooner, that slice of the CTC is never paid.
Numbers done. Now the decision.
Tell me what the numbers mean for you, and I’ll help you decide what to do next.