CTC to In-Hand Salary Calculator

An offer letter quotes a cost to company, but the number that matters when the rent is due is what lands in your account each month. The two can differ by a quarter or more, because CTC includes costs your employer carries on your behalf and because tax and your own provident fund come out of the rest. This page builds the salary structure from the CTC and works down to take-home pay.

How the CTC is split

First the employer-side items are removed: the employer’s provident fund (12 percent of basic, or of 15,000 a month if the company caps it, which is the default), gratuity at 4.81 percent of basic if it is part of the package, and group insurance. What remains is gross salary. Basic is a percentage of the CTC, HRA is a percentage of basic, and the special allowance is the balance. If basic and HRA together exceed the gross, the page tells you to lower one of them.

What is deducted

From the gross salary the page subtracts your own provident fund, at the same 12 percent rate on the same wage, professional tax for the year, and income tax. Income tax is estimated under the regime you choose using FY 2025-26 slabs: the standard deduction (75,000 in the new regime, 50,000 in the old), and for the old regime the professional tax as well. Rebate, surcharge and cess are applied as in the Income Tax Calculator.

A worked example

The default is a CTC of 12,00,000 with basic at 40 percent, HRA at 50 percent of basic, PF on the capped wage, gratuity included, insurance of 12,000 and professional tax of 2,400. Basic is 4,80,000, employer PF is 21,600, gratuity is 23,088, and the gross is 11,43,312. HRA is 2,40,000 and the special allowance is 4,23,312. Taxable income in the new regime is 10,68,312, which is under the rebate line, so the tax is nil. Take-home is 11,19,312 a year, or 93,276 a month, which is 93.3% of the CTC. For a 30,00,000 CTC with full PF and 24,000 of insurance, the gross is 27,74,280, the tax is 4,05,375, and take-home is 22,22,505, or 1,85,209 a month, 74.1%. A 6,00,000 CTC with 6,000 of insurance gives 44,738 a month.

Provident fund choices

Some employers calculate PF on the full basic pay and others on a ceiling of 15,000 a month. The toggle changes the PF wage, and with it the gross, the deduction from your pay and the take-home. A higher PF share lowers the cash you receive but builds the retirement balance, which the EPF Calculator projects.

Edge cases

A basic share above 100 or below 1 percent is rejected. Gratuity can be switched off if the offer does not include it. Insurance and professional tax accept zero. In the old regime the page deducts professional tax from taxable income, as the rules allow. Variable pay, joining bonus and reimbursements are not in the model, so reduce the CTC by the variable part before you enter it.

Limits

Employers differ in how they build a CTC, and some include meal vouchers, car leases or other perquisites. The page also leaves out HRA exemption, section 80C, home loan interest and employer NPS, which can lower tax under the old regime. Tax is spread evenly across 12 months in the monthly figure, whereas real payslips vary with the TDS calculation. Compare the result with your first payslip.

Related tools

• HRA Calculator finds the exempt part of rent for the old regime.
• EPF Calculator shows what the provident fund contribution grows into.
• Gratuity Calculator estimates the payment promised after five years.
• Salary Calculator converts between hourly, monthly and yearly pay.