Salary Calculator (CTC to In-Hand)
Turn your CTC into monthly in-hand salary after PF, professional tax and income tax
Monthly in-hand salary
₹88,268/ month
Eighty Eight Thousand Two Hundred Sixty Eight Rupees
Annual in-hand
₹10,59,212
Gross salary (monthly)
₹93,276
Income tax (year)
₹0
new regime
PF saved (you + employer, year)
₹1,15,200
The new regime saves you ₹1,19,874 a year in tax (new: ₹0, old: ₹1,19,874).
Professional tax in Karnataka: ₹200 a month and ₹300 in February, for monthly salary of ₹25,000 or more. Shown here spread evenly over 12 months.
Income tax is for a resident below 60 with no other income, FY 2026-27 (tax year 2026-27). Employers may also include EDLI/admin charges, meal cards or insurance in CTC; these aren't modelled. Your payslip may differ slightly.
Where your CTC goes (per year)
| Monthly | Yearly | |
|---|---|---|
| Cost to company (CTC) | ₹1,00,000 | ₹12,00,000 |
| − Employer PF | -₹4,800 | -₹57,600 |
| − Gratuity (paid when you leave, after 5 years) | -₹1,924 | -₹23,088 |
| = Gross salary (fixed) | ₹93,276 | ₹11,19,312 |
| · Basic | ₹40,000 | ₹4,80,000 |
| · HRA | ₹20,000 | ₹2,40,000 |
| · Special allowance | ₹33,276 | ₹3,99,312 |
| − Employee PF | -₹4,800 | -₹57,600 |
| − Professional tax | -₹208 | -₹2,500 |
| − Income tax (new regime) | ₹0 | ₹0 |
| = In-hand salary | ₹88,268 | ₹10,59,212 |
How to Use
- Enter your annual CTC from your offer letter, then the basic salary % and HRA % (the defaults, 40% and 50%, are common starting points).
- Choose how your employer pays PF — on your full basic or capped at the wage ceiling — and whether gratuity and any variable pay are included in the CTC.
- Pick your state for professional tax. If your state isn't listed, choose “Other state” and enter the amount from your payslip.
- Choose a tax regime, or let the calculator pick the cheaper one. For the old regime, add your rent, 80C, health insurance, home loan interest and NPS.
- Your monthly in-hand salary updates as you type. Open the breakup table to follow every rupee from CTC to take-home, and use share to send the numbers.
Why your in-hand salary is less than your CTC
CTC (cost to company) is everything your employer spends on you in a year — not what reaches your bank account. Part of it never comes to you as monthly pay (the employer's PF contribution, gratuity), part is paid later (variable pay or bonus), and from the rest your employer deducts your own PF contribution, professional tax and income tax (TDS). This calculator takes you through each step.
How the calculation works
Gross salary = CTC − employer PF − gratuity − variable pay
Special allowance = gross salary − basic − HRA
In-hand = gross salary − employee PF − professional tax − income tax
Special allowance = gross salary − basic − HRA
In-hand = gross salary − employee PF − professional tax − income tax
- Provident fund: you and your employer each contribute 12% of basic (plus DA). Many employers pay on the full basic; others limit it to the statutory wage ceiling — ₹15,000 a month until 16 September 2026 and ₹25,000 a month from 17 September 2026 (Labour Ministry notification under the Code on Social Security, 2020). Check your payslip to see which your employer uses.
- Gratuity: 15 days' basic for each year of service, counted on 26 working days a month — 15 ÷ 26 ÷ 12 = 4.81% of basic a year. You receive it only when you leave after at least five years of continuous service (one year for fixed-term employees under the Code on Social Security).
- Professional tax: a state tax of at most ₹2,500 a year (Article 276 of the Constitution). Some states, such as Delhi, Haryana, Uttar Pradesh and Rajasthan, don't levy it on salaries; Odisha repealed it from 1 April 2026.
- Income tax: worked out with the same engine as our income tax calculator, for a resident below 60 with no other income. Professional tax is deductible only in the old regime, and in the old regime your PF counts towards the ₹1.5 lakh 80C limit.
Worked example: ₹12 lakh CTC
| Item | Per year | Per month |
|---|---|---|
| CTC | ₹12,00,000 | ₹1,00,000 |
| Basic (40% of CTC) | ₹4,80,000 | ₹40,000 |
| − Employer PF (12% of basic) | ₹57,600 | ₹4,800 |
| − Gratuity (4.81% of basic) | ₹23,088 | ₹1,924 |
| = Gross salary | ₹11,19,312 | ₹93,276 |
| − Employee PF | ₹57,600 | ₹4,800 |
| − Professional tax (Karnataka) | ₹2,500 | ₹200 (₹300 in Feb) |
| − Income tax (new regime) | ₹0 | ₹0 |
| = In-hand | ₹10,59,212 | ≈ ₹88,268 |
Income tax is nil because, after the ₹75,000 standard deduction, the taxable income of ₹10,44,312 is below ₹12 lakh, where the section 87A rebate cancels the tax in the new regime. In the old regime the same salary would pay about ₹1.2 lakh in tax unless you claim large deductions. Out of ₹12 lakh CTC, about ₹1.38 lakh a year goes into PF and gratuity — that is still your money, just not in your monthly pay.
Variable pay and bonus
If your CTC includes a performance bonus, it isn't part of your monthly salary. The calculator shows the monthly in-hand from fixed pay only, and works out the extra tax that the bonus causes separately, so the annual in-hand is the full picture. Remember that variable pay often depends on ratings — the amount actually paid can be lower than the “target” in the CTC.
Tips for reading your offer letter
- A higher basic means more PF and gratuity (good for savings) but less monthly cash and, in the new regime, no tax benefit.
- Under the Labour Codes in force from 21 November 2025, allowances left out of “wages” (such as HRA and conveyance) can’t be more than 50% of your total pay — any excess is added back to wages when gratuity and other benefits are worked out. Many employers have raised basic pay to about half of pay as a result, so try 50% if your offer letter is recent.
- Employer contributions to PF, NPS and superannuation above ₹7.5 lakh a year in total are taxable — relevant only at very high salaries and not modelled here.
- Some CTCs also include insurance premiums, meal cards or EDLI and PF admin charges; deduct them from the CTC first if you want an exact match with your payslip.
Rules as of October 2026: tax slabs for FY 2026-27 under the Income-tax Act, 2025; PF wage ceiling per the September 2026 notification; professional tax amounts from state schedules. This is an estimate — your payslip is the final word.
Frequently Asked Questions
About ₹88,000 a month with a common structure: 40% basic, PF of 12% on the full basic, gratuity in the CTC, the new tax regime and Karnataka professional tax. There is no income tax because the taxable salary stays under ₹12 lakh after the ₹75,000 standard deduction. If your employer caps PF at the wage ceiling or leaves gratuity out of the CTC, your in-hand will be higher — enter your own structure to see the exact figure.
CTC is the total your employer spends on you in a year, including its PF contribution, gratuity and bonus. Gross salary is what appears as earnings on your payslip: basic, HRA and allowances, without the employer's PF and gratuity. Net (in-hand) salary is gross salary minus your PF, professional tax and income tax — the amount credited to your bank account.
Both are allowed. The law requires PF on wages up to the statutory ceiling, which was ₹15,000 a month and is ₹25,000 a month from 17 September 2026. Contributing on a higher basic is optional, so some employers deduct 12% of the full basic and others stop at the ceiling. Your payslip shows which applies to you; pick the matching option in the calculator.
Many employers set aside 4.81% of basic every year to fund gratuity and count it in the CTC. You receive it only when you leave after five or more years of continuous service (fixed-term employees qualify after one year under the Code on Social Security). Until then it doesn't appear in your monthly pay.
Delhi, Haryana, Uttar Pradesh, Rajasthan, Uttarakhand, Himachal Pradesh, Jammu & Kashmir and Arunachal Pradesh don't levy professional tax on salaries, and Odisha repealed it from 1 April 2026. States that do charge it, such as Maharashtra, Karnataka, Tamil Nadu, West Bengal, Telangana and Gujarat, take at most ₹2,500 a year.
No. The HRA exemption is available only in the old regime. In the new regime the whole HRA is taxable, but the lower slab rates and the ₹12 lakh rebate usually still make it cheaper. Choose “Pick the better one” and enter your rent to let the calculator compare both.