Convert your CTC to in-hand salary for FY 2026-27 — full breakdown of PF, gratuity, professional tax & income tax
Start with your annual CTC — everything below is calculated from this number.
Check your payslip or offer letter — most Indian employers set this between 40% and 50%.
Metro = Delhi, Mumbai, Kolkata, Chennai. Affects your HRA and, under Old Regime, your HRA tax exemption.
Included in your CTC. Used only to calculate fixed monthly salary.
This affects only the Professional Tax deduction — a minor part of your total deductions.
Not sure which one? New Regime usually works out better unless you claim large 80C or HRA deductions.
Detailed breakdown of where your CTC goes each year:
Disclaimer: This calculator provides estimates using common salary structure assumptions (Basic ~45% of CTC, employer/employee PF at 12% of Basic, gratuity provisioning). Actual salary breakup, PF applicability, and tax deducted vary by employer policy and individual circumstances. Income tax is estimated using FY 2026-27 slabs. Verify exact figures with your offer letter, payslip, or a tax professional.
A salary calculator converts your CTC (Cost to Company) into your actual in-hand salary — the amount that lands in your bank account every month. The number on your offer letter is rarely the number you take home, because CTC includes several components that never reach your account directly: employer PF contribution, gratuity provisioning, and sometimes insurance premiums. On top of that, your in-hand pay is further reduced by employee PF, professional tax, and income tax.
This CTC to in-hand salary calculator breaks every one of these pieces apart so you know exactly where your money goes — not just the final number.
Every CTC, however it's presented on your offer letter, boils down to the same handful of building blocks:
| Component | Typical Share of CTC | Reaches Your Bank Account? |
|---|---|---|
| Basic Salary | 40%–50% of CTC | Yes — fully credited monthly |
| HRA (House Rent Allowance) | Usually 40%–50% of Basic | Yes — credited monthly, partly tax-exempt if renting |
| Special Allowance | Balancing figure to complete CTC | Yes — fully taxable, fully credited |
| Employer PF Contribution | 12% of Basic (capped in many companies) | No — goes into your EPF account, not your bank account |
| Gratuity Provision | ≈4.81% of Basic | No — paid only on exit, after 5 years of continuous service |
| Employee PF Contribution | 12% of Basic | Deducted from gross pay, not lost — it's your own retirement saving |
So the gap between CTC and in-hand salary is really two things stacked together: money that never enters your salary account at all (employer PF, gratuity), and money that enters your account but is then deducted (employee PF, professional tax, income tax).
Inputs: CTC = ₹10,00,000 | Basic = 45% of CTC | No other deductions
Notice how much of the "loss" here is really employer PF and gratuity — money that isn't gone, just parked for your retirement or held until you leave the company. The actual cash cost to you (employee PF plus tax) is much smaller than the full CTC-to-in-hand gap suggests.
A higher Basic means higher PF and gratuity deductions, which lowers in-hand pay today — but builds a bigger retirement corpus. A lower Basic raises your monthly take-home but shrinks your PF savings over time.
Professional tax is a state subject — Maharashtra, Karnataka, West Bengal, and several others deduct it monthly, while Delhi and Haryana don't charge it at all. It's a small amount, but it does shift your final number.
The new regime usually wins for salaries with few deductions. The old regime can pull ahead if you claim HRA, a home loan, or a full 80C investment — always check both before deciding.
Under the old regime, HRA is partly or fully tax-exempt if you pay rent, which directly reduces your taxable income and raises your in-hand pay. Under the new regime, HRA is fully taxable regardless of rent.
Bonus is usually already included inside your CTC figure, not on top of it. It's taxed in the month it's paid, which can temporarily push you into a higher TDS deduction for that month even if your annual tax doesn't change.
Both you and your employer contribute 12% of Basic salary (subject to a wage ceiling many companies apply) to your EPF account every month. Your share is deducted from your salary; your employer's share is a separate cost added to your CTC. Neither reaches your bank account monthly — the money sits in your EPF account, earning interest, until retirement, resignation, or an eligible partial withdrawal.
Gratuity is a lump-sum benefit paid when you complete 5 years of continuous service with an employer — whether you resign, retire, or are laid off. Companies provision roughly 4.81% of Basic annually as a CTC cost, even though you won't see this money until you actually leave. It's calculated at the time of exit using the formula: (Last drawn Basic + DA) × 15 × years of service ÷ 26.
Professional tax is a small state-level tax on employment income, deducted monthly by your employer and remitted to the state government. Rates and slabs vary by state — most cap it around ₹200–₹300 a month, and a handful of states, including Delhi and Haryana, don't levy it at all.
Income tax is the single biggest variable deduction for most salaried employees, and it depends entirely on which tax regime you pick. Under the new tax regime (the default for FY 2026-27), a ₹75,000 standard deduction applies automatically, and taxable income up to ₹12,00,000 is effectively tax-free thanks to the Section 87A rebate. Under the old regime, the standard deduction is ₹50,000, but you can additionally claim 80C, 80D, HRA, and home loan interest to lower your taxable income further.
Your employer deducts this tax monthly as TDS (Tax Deducted at Source), based on the regime you declare at the start of the year and the investment proofs you submit. If you want the full slab-by-slab breakdown and a side-by-side regime comparison, the income tax calculator runs both regimes on your exact numbers and tells you which one actually leaves more in your pocket.
Start with your CTC, subtract the employer's PF contribution and gratuity provision (neither reaches your bank account), and you get your gross salary. From gross salary, subtract employee PF, professional tax, and income tax (TDS) to arrive at your monthly in-hand salary. This calculator does all these steps for you based on your exact CTC, Basic percentage, state, and chosen tax regime.
Most salaried employees take home roughly 70–85% of their CTC, depending on their Basic salary percentage, tax regime, and income level. Lower CTC bands tend to be closer to 85–90% because income tax is minimal, while higher CTC bands often fall closer to 65–75% once higher tax slabs and surcharge apply.
CTC includes several components that never enter your bank account monthly — mainly the employer's PF contribution and the gratuity provision, both of which are paid out later (at retirement, resignation, or after 5 years of service for gratuity). On top of that, your gross salary is further reduced by your own PF contribution, professional tax, and income tax, which is what actually brings you down to your final in-hand figure.
Most Indian companies set Basic between 40% and 50% of CTC. A higher Basic increases PF and gratuity (both long-term savings) but lowers your monthly in-hand pay today, while a lower Basic does the opposite. Neither is objectively "better" — it depends on whether you value monthly liquidity or a larger retirement corpus more.
No. Professional tax is levied by state governments, not the central government, so rates and applicability vary. States like Maharashtra, Karnataka, West Bengal, and Tamil Nadu charge it monthly, typically capped around ₹200–₹300, while states like Delhi and Haryana do not levy professional tax at all.
If you have few deductions — no home loan, minimal 80C investment, and don't claim HRA — the new regime usually results in a higher in-hand salary due to its lower rates and higher rebate threshold. If you pay significant rent, have an active home loan, or invest heavily in 80C and 80D instruments, the old regime can work out better. Run both scenarios through the income tax calculator before deciding.
In most Indian companies, bonus or variable pay is already included within the CTC figure quoted in your offer letter — it isn't paid on top of it. It's taxed in the month it's actually disbursed, which can temporarily increase the TDS deducted that month, though your total annual tax liability doesn't change because of this timing.
Yes, in specific circumstances — the EPFO allows partial withdrawals for reasons like medical emergencies, home purchase or construction, higher education, or marriage, subject to conditions on years of service and withdrawal limits. Full withdrawal is typically allowed after 2 months of unemployment or at retirement.
Gratuity is calculated as (Last drawn Basic + DA) × 15 × number of years of service ÷ 26, payable once you complete 5 years of continuous service with an employer. Companies provision roughly 4.81% of Basic annually as a CTC cost toward this, but the actual payout only happens when you leave the organisation.
A salary calculator using standard assumptions (Basic around 40–50% of CTC, PF at 12% of Basic, current-year tax slabs) closely approximates your actual in-hand pay for a typical salary structure. Your exact number can vary slightly based on your specific company's CTC structure, any additional benefits like insurance premiums built into CTC, and TDS timing. Always confirm the final figure against your payslip or offer letter.
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