CTC to In-Hand Salary Calculator

How CTC becomes in-hand salary

CTC (cost to company) is everything the employer spends on an employee in a year. Part of it never reaches the employee's bank account:

1. Employer contributions come out of CTC first: employer PF, employer ESI where it applies, and gratuity if the employer includes it in CTC. What is left is gross salary.
2. Employee deductions come out of gross salary: employee PF, employee ESI, professional tax and income tax (TDS). What is left is in-hand (take-home) salary.

Example with the default figures: CTC ₹12,00,000 and basic at 50%. Basic is ₹50,000 a month, above the ₹25,000 PF wage ceiling, so employer PF is 12% of ₹25,000 = ₹3,000 a month, ₹36,000 a year, and gross salary is ₹11,64,000. Monthly gross is above ₹21,000, so ESI does not apply. Taxable income after the ₹75,000 standard deduction is ₹10,89,000, which is under ₹12 lakh, so the rebate brings income tax to nil. Take-home is ₹11,64,000 − ₹36,000 employee PF − ₹2,400 professional tax = ₹11,25,600 a year, or ₹93,800 a month.

Rules this calculator uses

• PF: 12% of basic from the employee and 12% from the employer, on basic up to the ₹25,000 a month wage ceiling (raised from ₹15,000 with effect from 17 September 2026) if the ceiling box is ticked, or on full basic if it is not. Under the Code on Social Security, if allowances make up more than half of total pay, the excess can count as wages for PF, so keep basic at about half of pay or check with your CA.
• ESI: applies when monthly gross is ₹21,000 or less, at 0.75% from the employee and 3.25% from the employer.
• Gratuity: if included in CTC, 4.81% of basic, set aside by the employer. It is paid only on leaving after the qualifying service.
• Income tax: new tax regime slabs from Budget 2025, a ₹75,000 standard deduction, the section 87A rebate up to ₹12 lakh of taxable income with marginal relief just above it, surcharge above ₹50 lakh, and 4% health and education cess. Old-regime deductions such as 80C and HRA are not applied. Budget 2026 left these slabs, the standard deduction and the rebate unchanged for FY 2026-27.

New tax regime slabs used

For a full explanation of salary components, see our guide to CTC and salary structure.