Salary Calculator

Convert annual CTC to monthly in-hand salary. Accounts for PF, gratuity, professional tax, and TDS. Free, privacy-first — inputs never leave your browser.

Tax🇮🇳India · FY 2026-27Reviewed Apr 2026No sign-up · Runs in your browser

CTC Details

Annual CTC₹15,00,000

City Type

Tax Regime

Take-home Breakdown

Monthly In-Hand

₹1,11,326

Annual In-Hand

₹13,35,912

Basic

₹6,00,000

HRA

₹3,00,000

Special Allow.

₹5,49,540

Employer PF

₹21,600

Employee PF

₹21,600

Gratuity

₹28,860

Annual TDS

₹89,628

For estimation only. Not professional financial, tax, or legal advice. Consult a qualified advisor before making decisions. Full disclaimer.

How it works

What is the difference between CTC, gross, and in-hand salary?

CTC — Cost to Company — is everything your employer spends on you in a year. It includes components you never see in your bank account: employer PF contribution (12% of basic), gratuity accrual (~4.81% of basic), and sometimes group health insurance and NPS employer share. Gross salary is what appears on your payslip before deductions; in-hand salary is what is credited to your bank account after PF, professional tax, and TDS. The regulatory framework sits across the EPF Act, state Professional Tax Acts, and the Income-tax Act — see incometaxindia.gov.in for the current slabs.

How in-hand salary is calculated

In-hand = CTC − (employer PF + gratuity accrual) − (employee PF + Prof Tax + TDS)

Employer PF — 12% of basic, part of CTC but not of gross.
Gratuity accrual — 4.81% of basic reserved by employer.
Employee PF — 12% of basic, deducted from gross.
Professional Tax — state-specific; Maharashtra/Karnataka ₹200/month, Tamil Nadu slab-based, Gujarat ₹200/month. Delhi, UP, Haryana: nil.
TDS — monthly average of annual tax liability under the chosen regime.

Worked example — ₹18 lakh CTC breakdown

CTC ₹18,00,000 with Basic 40% (₹7,20,000), HRA 20% (₹3,60,000), special allowance ₹5,33,000. Employer PF = ₹86,400; gratuity accrual = ₹34,632 → gross = ₹16,78,968. Employee PF ₹86,400, Prof Tax ₹2,400, and TDS under new regime on ₹16,03,968 taxable income = ~₹2,00,000. In-hand = 16,78,968 − 86,400 − 2,400 − 2,00,000 = ₹13,90,168/year or about ₹1.16 lakh/month — roughly 77% of CTC.

How to optimise your take-home

Negotiate basic carefully. Higher basic means higher PF and gratuity — good for retirement, lower take-home.
Use NPS 80CCD(2). Up to 14% of basic contributed by employer is deductible beyond the ₹1.5L 80C cap — works in the new regime too.
Claim standard deduction ₹75,000. Automatic under new regime (₹50,000 under old).
Pick the right regime. With < ₹3.75L of deductions, new regime wins for almost everyone.
Structure meal / LTA / phone reimbursements. Old regime only — can add ₹60-80K/yr of tax-free components.

Common mistakes

Comparing CTC across offers directly. A ₹20L CTC with heavy retirals can pay less in-hand than an ₹18L CTC with lean structure.
Ignoring notice period and variable pay. Bonus is often paid annually; in-hand per month is lower than CTC ÷ 12.
Forgetting state professional tax. Small line item but varies significantly by state.
Missing Form 12BB deadlines. Declarations late in the year lead to bunched TDS in Feb/Mar.

Common questions about Salary

Why is my in-hand salary so much lower than CTC?+

CTC — Cost to Company — is what your employer spends. It includes employer PF contribution (12% of basic), gratuity accrual (~4.81% of basic), and sometimes group medical/life insurance. These never hit your bank account. From your Gross Salary (CTC minus employer PF and gratuity), employee PF, professional tax, and TDS are further deducted. In-hand is typically 70-80% of CTC.

What percentage of CTC is in-hand typically?+

At ₹10L CTC: roughly 80-85% in-hand (~₹8-8.5L). At ₹25L CTC: 70-75% (~₹17.5-18.75L). At ₹50L CTC: 60-65% (~₹30-32.5L, surcharge kicks in). Higher salaries have lower in-hand % because of progressive tax rates.

How can I increase my in-hand salary?+

Negotiate for lower Basic + higher HRA (if renting, HRA is tax-exempt under old regime). Opt for food vouchers, phone reimbursement (partial exemption). Invest in NPS via employer (80CCD(2) unlimited deduction). Shift to new regime if deductions are minimal.

Does my in-hand change if I opt for the new tax regime?+

Yes — TDS becomes lower if new regime saves more tax (usually up to ₹12L). You can elect the regime with your employer at the start of the year, or switch at ITR time (salaried only).

What are variable pay and bonuses in CTC?+

Variable pay (10-30% of CTC) is performance-linked — paid annually or quarterly based on company/individual performance. Stock options (RSU/ESOP) are separate from cash CTC. Always ask for the "fixed" vs "variable" split — banks often lend based only on fixed portion.

Is PF contribution really mandatory?+

Yes, if your basic salary is ≤ ₹15,000/month, it's mandatory under EPFO. Above ₹15,000, employers can offer voluntary PF (VPF). You can opt out once, but most don't — PF earns 8.25% tax-free with employer matching, effectively a 100% return on the employee contribution.

What is Professional Tax and does it vary by state?+

Yes. Professional Tax is a state-level tax on employment income. Maharashtra, Karnataka, West Bengal, Andhra Pradesh charge ~₹200/month for most earners. Some states (Delhi, UP, Haryana) don't levy it. The maximum is capped at ₹2,500/year by the Constitution.

Is Gratuity part of CTC?+

Technically yes, as annual accrual (~4.81% of basic), but you only receive it when leaving after 5+ years of service. If you leave earlier, you get nothing. Max tax-free gratuity: ₹20 lakh (cumulative lifetime cap).

Should Basic Salary be high or low?+

Basic affects PF (12%), gratuity, HRA (percentage of basic), and LTA — higher basic = higher retirement savings but lower immediate in-hand. For most salaried, 40-50% of CTC as basic is optimal. Too low (<30%) is flagged by tax authorities as structured to avoid TDS.

How accurate is this salary calculator?+

It's accurate for standard salary structures (basic + HRA + special allowance + PF + gratuity + tax). Variable pay, ESOPs, perquisites, and specific company components may vary. Always verify with your HR and Form 16.