How do I calculate in-hand salary from CTC?

Subtract the parts of CTC that are not salary — employer provident fund, the gratuity provision, insurance premiums — to get gross salary. Then subtract your own PF contribution, professional tax, ESI if applicable, and income tax. What is left is take-home.

Why is my take-home so much lower than my CTC?

Typically 8–12% of CTC never becomes salary at all, and another 15–30% of gross goes in provident fund and income tax. On a ₹12 lakh CTC a take-home of around ₹75,000–₹85,000 a month is normal.

Should basic be 40% or 50% of CTC?

Either works. A higher basic raises your provident fund and your eventual gratuity, and lowers your monthly cash. The Code on Wages sets a practical floor: if allowances outside wages exceed half of total remuneration, the excess is added back anyway.

Does a higher CTC always mean more take-home?

No. An increase loaded into employer PF, the gratuity provision or a benefit inside CTC raises the headline without raising the bank credit. Compare gross, not CTC, when you are weighing two offers.

In-Hand Salary Calculator

Turn an annual CTC into a monthly take-home figure — basic, HRA and special allowance on one side, provident fund, professional tax, ESI and income tax on the other, with the gap between CTC and gross shown explicitly.

Free · No sign-up · Nothing leaves your browser · Figures reviewed 22 September 2026

Your details

Annual CTC

₹

Basic as a share of CTC

%

Most Indian structures use 40–50%. A higher basic means more PF and a bigger gratuity entitlement, and less take-home.

HRA as a share of basic

%

50% is usual in the metros, 40% elsewhere.

Employer PF is inside CTC

Most Indian offer letters include it. If yours pays it on top, switch this off.

Gratuity provision is inside CTC

Other benefits inside CTC

₹

Insurance premium, meal cards, anything else loaded into CTC but not paid as salary.

State, for professional tax

Tax regime

Living in a metro

For HRA, metros are exactly four: Mumbai, Kolkata, Delhi and Chennai.

Monthly take-home

₹94,477

₹11,33,723 a year in hand, from a ₹12,00,000 CTC.

Take-home · 94%
PF · 4%
Other deductions · 2%

Monthly earnings

Basic40% of CTC: ₹40,000
HRA50% of basic: ₹20,000
Special allowance and other pay: ₹36,277
Gross salary: ₹96,277

Monthly deductions

Provident fund12% of ₹15,000: ₹1,800
Professional taxNot levied in this state: ₹0
Income taxNew regime, spread evenly over the year: ₹0
Total deductions: ₹1,800
Take-home: ₹94,477

Inside the CTC but not in your salary

Employer PFCounted inside CTC: ₹21,600
Gratuity provision15/26 of a month's basic each year: ₹23,077
Other benefitsInsurance premium, meal cards, anything else loaded into CTC: ₹0
Annual gross salary: ₹11,55,323

This is the gap between CTC and gross. It is real money — it just does not pass through your bank account each month.

Tax for the year

Taxable income: ₹10,80,323
Tax before rebate: ₹48,032
Rebate: ₹48,032
Cess at 4%: ₹0
Total tax: ₹0
Effective rateOn taxable income: 0%

The new regime allows the ₹75,000 standard deduction and employer NPS, and nothing else from salary.

Tax is spread evenly across twelve months here. Real TDS is recomputed every month as declarations and proofs change, so early months often differ from later ones.

This assumes a standard structure. Where your offer letter carves out reimbursements, a car lease or employer NPS, the taxable figure will differ.

This is an estimate for planning, not tax advice. It uses the FY 2026-27 rates and assumes a standard salary structure — your actual liability depends on your full income, declarations and proofs.

CTC and take-home are different numbers for two reasons, and most calculators only handle one of them. Part of CTC never becomes salary at all — the employer's provident fund contribution, the gratuity provision, an insurance premium. What is left is gross salary, and deductions come out of that.

This calculator shows both steps. Adjust the structure to match your own offer letter: the basic percentage and whether employer PF and gratuity sit inside the CTC are the two settings that move the answer most.

Where CTC goes

A typical ₹12,00,000 CTC with employer PF and gratuity inside it produces roughly ₹11,20,000 of gross salary. The rest is real money spent on you — it just never reaches your bank account as salary.

From gross, four things come out: your provident fund contribution, professional tax if your state levies it, ESI if you are within the ₹21,000 ceiling, and income tax. What remains is take-home.

Why the basic percentage matters

Basic drives provident fund, gratuity and the HRA calculation. A higher basic means more forced saving and a larger gratuity entitlement, and less cash each month. A lower basic does the reverse.

There is a floor on how low it can go. Under the Code on Wages, where excluded allowances exceed half of total remuneration the excess is added back into wages — so a structure with a token basic and a large special allowance does not achieve what it used to. The Supreme Court's universality test sits alongside that and catches structures the arithmetic alone would let through.

Why your first payslip may not match

Tax is spread evenly across twelve months here. Real TDS is recomputed every month against a fresh projection, so it typically rises in January and February when declarations without proofs are reversed.

If you joined part-way through the year and did not give your new employer your previous salary details on Form 122, TDS will be under-deducted all year — both employers give you the basic exemption and the standard deduction, and the shortfall lands at filing.

Frequently asked questions

How do I calculate in-hand salary from CTC?: Subtract the parts of CTC that are not salary — employer provident fund, the gratuity provision, insurance premiums — to get gross salary. Then subtract your own PF contribution, professional tax, ESI if applicable, and income tax. What is left is take-home.
Why is my take-home so much lower than my CTC?: Typically 8–12% of CTC never becomes salary at all, and another 15–30% of gross goes in provident fund and income tax. On a ₹12 lakh CTC a take-home of around ₹75,000–₹85,000 a month is normal.
Should basic be 40% or 50% of CTC?: Either works. A higher basic raises your provident fund and your eventual gratuity, and lowers your monthly cash. The Code on Wages sets a practical floor: if allowances outside wages exceed half of total remuneration, the excess is added back anyway.
Does a higher CTC always mean more take-home?: No. An increase loaded into employer PF, the gratuity provision or a benefit inside CTC raises the headline without raising the bank credit. Compare gross, not CTC, when you are weighing two offers.

About this tool

Built by the ViniOffice team. Figures and rules last reviewed 22 September 2026 against the statutory reference this team maintains. Indian statutory rates are date-effective and change by notification — confirm against the current one before running payroll or filing. This is an estimate for planning, not tax advice. It uses the FY 2026-27 rates and assumes a standard salary structure — your actual liability depends on your full income, declarations and proofs.

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