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In-Hand Salary Calculator

CTC to monthly take-home, with full breakup

Reviewed by the PaisaTools Editorial Team · Last reviewed September 2026 · Applicable to FY 2026-27 (AY 2027-28)

₹

Your total cost-to-company, as on the offer letter

%

Labour codes (Nov 2025) count at least 50% of pay as wages for PF and gratuity

New regime, FY 2026-27. Assumes HRA = 50% of Basic, PF = 12% of Basic (employer + employee), gratuity = 4.81% of Basic, professional tax ₹2,400/yr. Real structures vary — adjust Basic % to match your offer.

In-hand (per month)

₹85,395

Annual in-hand

₹10,24,740

Total deductions/yr

₹74,400

Where your CTC goes (per year)

  • In-hand₹10,24,74085%
  • Income tax₹00%
  • PF (you + employer)₹1,44,00012%
  • Gratuity + prof. tax₹31,2603%

Full breakup (annual)

Earnings

Basic salary
₹6,00,000
HRA
₹3,00,000
Special allowance
₹1,99,140
Employer PF
₹72,000
Gratuity
₹28,860
Total CTC
₹12,00,000

Deductions

Employee PF
− ₹72,000
Professional tax
− ₹2,400
Income tax (incl. cess)
₹-0
Annual in-hand
₹10,24,740

Worked example: a ₹12 lakh CTC, line by line

The gap between CTC and take-home is not one deduction but three layers: money your employer spends that never enters your payslip, money taken from your payslip before tax, and the tax itself. Here is each layer for a ₹12 lakh offer with Basic at half the CTC.

  1. CTC on the offer letter

    ₹12,00,000

  2. Basic salary

    50% of CTC — the base for PF and gratuity

    ₹6,00,000

  3. Employer PF contribution

    12% of Basic, paid into your PF account, not to you

    − ₹72,000

  4. Gratuity provision

    4.81% of Basic, paid only when you leave after qualifying service

    − ₹28,860

  5. = Gross salary on your payslip

    ₹10,99,140

  6. Your own PF contribution

    Another 12% of Basic, matched from your side

    − ₹72,000

  7. Professional tax

    State levy, taken here as ₹200 a month

    − ₹2,400

  8. Income tax, new regime

    Taxable income ₹10,24,140 after the ₹75,000 standard deduction, inside the ₹12 lakh rebate limit

    − ₹0

  9. = In-hand for the year

    ₹10,24,740

  10. = In-hand every month

    ₹85,395

Tax is not what shrinks this offer — the two PF lines and gratuity are. At a 50% Basic, a CTC up to about ₹13.9 lakh pays no income tax at all under the new regime, because the taxable figure stays inside the rebate. Above that line, tax starts, and a higher Basic raises PF, which lowers take-home while building your retirement savings.

In-hand salary for common CTCs

Monthly figures for FY 2026-27 under the new tax regime, with Basic at half the CTC. Your own structure will move these — enter your offer letter in the calculator above for an exact figure.

CTCGross / monthYour PF / monthTax / monthIn-hand / month
₹4 lakh₹30,532₹2,000₹0₹28,332
₹5 lakh₹38,165₹2,500₹0₹35,465
₹6 lakh₹45,798₹3,000₹0₹42,598
₹8 lakh₹61,063₹4,000₹0₹56,863
₹10 lakh₹76,329₹5,000₹0₹71,129
₹12 lakh₹91,595₹6,000₹0₹85,395
₹15 lakh₹1,14,494₹7,500₹6,486₹1,00,308
₹18 lakh₹1,37,393₹9,000₹10,058₹1,18,134
₹20 lakh₹1,52,658₹10,000₹13,120₹1,29,339
₹25 lakh₹1,90,823₹12,500₹21,989₹1,56,134
₹30 lakh₹2,28,988₹15,000₹33,094₹1,80,693
₹40 lakh₹3,05,317₹20,000₹56,909₹2,28,208
₹50 lakh₹3,81,646₹25,000₹80,724₹2,75,722

Assumes employee and employer PF at 12% of Basic with no wage ceiling, gratuity at 4.81% of Basic and professional tax of ₹2,400 a year. Surcharge applies above ₹50 lakh taxable income. Linked amounts open a page with the full breakup.

Popular CTC amounts

Indian salary offers are quoted as CTC, but CTC bundles in costs you never see as cash — chiefly the employer's PF contribution and gratuity. This calculator unpacks a CTC into a typical structure (Basic, HRA, special allowance, employer PF, gratuity), then deducts your employee PF, professional tax and income tax to land on real monthly take-home.

Company structures differ, and the single biggest swing factor is Basic as a percentage of CTC — so that's a slider, not a fixed assumption. A higher Basic shifts money from your monthly cash into PF and gratuity (more savings, less in hand now).

Figures use the new tax regime (FY 2026-27). Professional tax is taken as a typical ₹200/month; your state may differ, and some states charge none. PF — yours and your employer's — is taken as 12% of your full Basic; many employers cap it at 12% of the ₹15,000 wage ceiling (₹1,800 a month), which gives a higher in-hand figure, so check your offer letter. Treat the result as a close estimate, then fine-tune Basic % to match your own offer.

Why your in-hand is lower than the CTC suggests. A common shock for first-jobbers: a ₹6 lakh CTC does not mean ₹50,000 a month in the bank. CTC is the employer's total cost, and a chunk of it never reaches your account as monthly cash — the employer's 12% PF and 4.81% gratuity are on the CTC but land in retirement pots, not your salary; your own 12% PF is deducted before pay-day; and gross salary, professional tax and (above the rebate) income tax take the rest. The gap between CTC and take-home is widest at higher Basic percentages.

Offer-letter traps to check before you celebrate. Three lines quietly shrink the monthly figure: (1) variable pay / performance bonus — often 10–20% of CTC that's conditional and paid annually, not monthly; (2) joining or retention bonus — a one-time figure padded into the CTC headline; and (3) a large "other allowances" orflexi-benefit bucket that's only tax-free if you submit bills. Strip those out, set Basic to what the letter actually states, and the calculator shows the number that will really hit your account each month.

Need the payslip itself? Download the free salary slip format in Excel with formulas: loss-of-pay days, PF on the ₹15,000 ceiling, ESI, professional tax and TDS, plus the employer's PF split. Free to share and adapt with credit (CC BY 4.0). How to fill the salary slip.

The CTC is split using standard Indian salary-structure conventions — Basic as a chosen % of CTC, HRA at 50% of Basic, employer & employee EPF at 12% of Basic (per EPFO norms), and gratuity at 4.81% of Basic. Income tax uses the new-regime slabs and ₹75,000 standard deduction for FY 2026-27. Professional tax is a state levy taken here as a typical ₹2,400/year. Actual structures vary by employer.

  • PF and allowance structures vary by employer.
  • Professional tax is state-specific.
  • Tax is simplified (surcharge/cess/standard deduction).
What is the difference between CTC and in-hand salary?
CTC (cost to company) is everything your employer spends on you — including employer PF and gratuity, which never reach your bank account. In-hand salary is what's left after employer-only costs are removed and your PF, professional tax and income tax are deducted.
How is in-hand salary calculated from CTC?
Start with CTC, subtract employer PF and gratuity to get your gross salary, then subtract employee PF, professional tax and income tax. What remains is your annual in-hand; divide by 12 for the monthly figure.
Why is my in-hand salary so much lower than my CTC?
Two reasons: a chunk of CTC (employer PF + gratuity) is never paid to you in cash, and your gross is then reduced by your own PF, professional tax and income tax. The gap is usually larger at higher CTCs because income tax rises.
Does Basic salary percentage affect my take-home?
Yes. A higher Basic means more PF (12% of Basic from both you and your employer) and gratuity, which lowers immediate cash in hand but builds more retirement savings. That's why this calculator lets you set Basic as a % of CTC.
Which tax regime does this use?
The new regime for FY 2026-27 — the default — with the ₹75,000 standard deduction and the §87A (section 156 of the new Income-tax Act, 2025) rebate (zero tax up to ₹12 lakh taxable income). HRA is not exempt under the new regime, so the full gross is taxable.
If CTC is 6 lakhs, what is the in-hand salary?
It depends on how the ₹6 lakh CTC is structured — chiefly the Basic %. Enter it above (or open the ready ₹6 lakh CTC scenario) and set Basic to match your offer letter to see the exact monthly figure. As a rule of thumb, monthly in-hand is meaningfully below CTC ÷ 12, because employer PF and gratuity sit inside CTC without being paid as cash, and your own PF is deducted before pay-day.
How do I calculate monthly in-hand salary from CTC?
Split the CTC into Basic, HRA and allowances; remove employer PF and gratuity (they're part of CTC but not monthly cash); then subtract your employee PF, professional tax and income tax, and divide the remainder by 12. This calculator does all of it live — enter your CTC and Basic % for the monthly figure and the full breakup.

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