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In-Hand Salary Calculator India — CTC to Take-Home (FY 2025-26)

Calculate your monthly take-home salary from CTC. Full breakup: basic, HRA, PF, gratuity, professional tax, and income tax under new and old regime. Compare multiple CTC offers and optimize your salary structure for maximum in-hand or retirement savings.

Cost to Company per year (from offer letter)
%
Typically 40\u201350% of CTC. Check your salary slip.
Delhi, Mumbai, Chennai, Kolkata = metro
New regime is default from FY 2023-24
%
Performance bonus / variable pay as % of CTC (0\u201320% typical)
Professional tax varies by state. Delhi has nil PT.

How to Use This Calculator

CTC to In-Hand tab

Enter your annual CTC (from your offer letter or salary revision), basic salary % (typically 40–50% of CTC), select metro or non-metro for HRA calculation, and choose your tax regime (new or old). Expand "More options" to set variable pay % and your state for professional tax. The calculator instantly shows your monthly in-hand salary with a full CTC breakup waterfall: CTC → gross salary → deductions → in-hand. It also compares tax under both regimes.

Compare CTCs tab

Enter 2–3 CTC amounts (e.g., current vs offer vs counter-offer). The calculator produces a side-by-side comparison showing gross salary, deductions, and monthly in-hand for each CTC. The marginal in-hand analysis shows how much extra take-home you get per rupee of CTC increase — this drops as you enter higher tax slabs.

Optimize Structure tab

Enter your CTC and see how different basic salary percentages (30%, 40%, 50%) affect your in-hand salary vs retirement savings. Higher basic = more PF + gratuity (retirement) but lower monthly take-home. Use this to negotiate salary structure with your employer.

Share your result

All inputs are encoded in the URL. Click Share to send your exact salary breakup to HR, a recruiter, or a family member.

The Formula

CTC Breakup:
Basic Salary = CTC × Basic %
HRA = Basic × 50% (metro) or 40% (non-metro)
Employer PF = Basic × 12%
Gratuity Provision = Basic × 15/26 (= 4.81% of basic)
Special Allowance = CTC − Basic − HRA − Employer PF − Gratuity − Variable Pay

Gross Salary:
Gross = CTC − Employer PF − Gratuity Provision − Variable Pay

Employee Deductions:
Employee PF = Basic × 12%
Professional Tax = State-specific (&rupee;200/month in most states, nil in Delhi)
ESI = 0.75% of gross wages (only if monthly gross ≤ &rupee;21,000)
TDS = Income tax per slab rates + 4% cess

In-Hand Salary:
Monthly In-Hand = (Gross − Employee PF − Professional Tax − ESI − TDS) ÷ 12

Employer PF Split:
EPF contribution = 3.67% of basic
EPS contribution = 8.33% of basic (capped at &rupee;15,000 basic = &rupee;1,250/month)
If basic > &rupee;15,000/month, excess EPS goes to EPF

Worked Example

Priya — Software Engineer in Bengaluru, CTC &rupee;12,00,000

Priya (28) has received an offer with &rupee;12 lakh CTC. Her salary structure has 40% basic, metro HRA, 10% variable pay. She is in Karnataka and opts for the new tax regime.

Step 1: CTC Breakup

Annual CTC&rupee;12,00,000
Basic salary (40%)&rupee;4,80,000
HRA (50% of basic, metro)&rupee;2,40,000
Employer PF (12% of basic)&rupee;57,600
Gratuity provision (15/26 of basic)&rupee;27,692
Variable pay (10%)&rupee;1,20,000
Special allowance (balance)&rupee;2,74,708

Step 2: Gross Salary

Gross = CTC − Employer PF − Gratuity − Variable&rupee;9,94,708
Monthly gross&rupee;82,892

Step 3: Deductions

Employee PF (12% of basic)&rupee;57,600
Professional tax (Karnataka)&rupee;2,400
ESINot applicable (gross > &rupee;21K/mo)
Taxable income (new regime)&rupee;9,94,708 − &rupee;75,000 = &rupee;9,19,708
Income tax (new regime, rebate u/s 87A)&rupee;0 (taxable ≤ &rupee;12L)

Step 4: In-Hand Salary

Annual in-hand&rupee;9,94,708 − &rupee;57,600 − &rupee;2,400 = &rupee;9,34,708
Monthly in-hand&rupee;77,892
In-hand as % of CTC77.9%

Verdict: Priya's &rupee;12L CTC gives her ~&rupee;77,900/month in-hand (77.9% of CTC). She pays zero income tax thanks to the new regime rebate. Her &rupee;57,600/year employee PF + &rupee;57,600 employer PF = &rupee;1,15,200 goes to retirement savings at 8.25% tax-free interest.

Key Rates & Limits (FY 2025-26)

Income tax slabs — New regime (default)
Taxable Income Rate
Up to &rupee;4,00,000Nil
&rupee;4,00,001 – &rupee;8,00,0005%
&rupee;8,00,001 – &rupee;12,00,00010%
&rupee;12,00,001 – &rupee;16,00,00015%
&rupee;16,00,001 – &rupee;20,00,00020%
&rupee;20,00,001 – &rupee;24,00,00025%
Above &rupee;24,00,00030%

Standard deduction: &rupee;75,000. Rebate u/s 87A: zero tax if taxable income ≤ &rupee;12,00,000. Health & education cess: 4% on tax.

Income tax slabs — Old regime
Taxable Income Rate
Up to &rupee;2,50,000Nil
&rupee;2,50,001 – &rupee;5,00,0005%
&rupee;5,00,001 – &rupee;10,00,00020%
Above &rupee;10,00,00030%

Standard deduction: &rupee;50,000. Section 80C: up to &rupee;1,50,000 (PF, PPF, ELSS, LIC, etc.). Section 80D: &rupee;25,000–&rupee;1,00,000 (health insurance). HRA exemption available. Rebate u/s 87A: zero tax if taxable income ≤ &rupee;5,00,000.

PF & ESI contribution rates
Component Employee Employer Notes
EPF 12% of basic 3.67% of basic Both go to EPF account
EPS 8.33% of basic Capped at &rupee;15K basic (&rupee;1,250/mo). Excess → EPF.
ESI 0.75% 3.25% Only if monthly gross ≤ &rupee;21,000. Most IT employees exempt.

EPF earns 8.25% interest (FY 2025-26), tax-free up to &rupee;2.5L annual contribution. EPS provides pension after 10 years of service and age 58.

Professional tax by state
State Monthly Annual Notes
Maharashtra&rupee;200&rupee;2,500&rupee;300 in February (total &rupee;2,500/yr)
Karnataka&rupee;200&rupee;2,400Flat &rupee;200/month for salary > &rupee;15K
Tamil NaduUp to &rupee;208&rupee;2,500Graduated slab, max &rupee;208/mo
West Bengal&rupee;200&rupee;2,400Graduated slab based on salary
Andhra Pradesh / Telangana&rupee;200&rupee;2,400Applicable for salary > &rupee;15K/mo
Gujarat&rupee;200&rupee;2,400For salary > &rupee;12K/mo
Kerala&rupee;208&rupee;2,500Max &rupee;208/month
DelhiNilNilDelhi does not levy professional tax

Professional tax is deductible under both old and new tax regimes. Maximum professional tax allowed under the Constitution is &rupee;2,500/year (Article 276).

Gratuity calculation

Formula: Gratuity = 15 ÷ 26 × Last drawn basic salary × Years of service

Payable after 5 years of continuous service. Maximum gratuity: &rupee;25,00,000 (tax-free). The 15/26 factor means 15 days of salary for every completed year, with a 26-day working month.

Monthly provision: Companies provision 4.81% of basic per year (15/26 = 57.69% of one month's basic per year) as part of CTC. This is not deducted from your salary — it reduces your gross salary computation.

Example: Basic &rupee;40,000/month, 10 years of service: Gratuity = 15/26 × 40,000 × 10 = &rupee;2,30,769.

FAQ

Several CTC components never appear in your monthly bank credit: Employer PF (12% of basic) goes directly to your EPF account. Gratuity provision (4.81% of basic) is paid only after 5 years of service. Variable/bonus pay (10–20% of CTC) is paid quarterly or annually based on performance. Employer ESI (3.25%, if applicable) goes to ESI fund. Group insurance premium (varies) is paid directly to insurer. Together, these can be 25–35% of CTC, which is why your in-hand is typically 65–80% of CTC.
Employee PF (12% of basic) is technically a deduction from your gross salary, but it's deferred income, not a cost. The money goes into your EPF account, earns 8.25% interest (FY 2025-26, tax-free up to &rupee;2.5L annual contribution), and can be withdrawn after retirement or after 2 months of unemployment. It is one of the safest and highest-yielding debt instruments available. Employer PF (another 12%) is an additional contribution — essentially free money from your employer. Total PF of 24% of basic is significant forced savings. For a &rupee;12L CTC with 40% basic, total annual PF = &rupee;1,15,200 (employee &rupee;57,600 + employer &rupee;57,600).
Higher basic % means: (1) Higher PF deduction (both employee and employer 12% each) → lower monthly take-home but more retirement savings. (2) Higher HRA → more HRA exemption under old regime. (3) Higher gratuity → more payout after 5 years. (4) Lower special allowance → which is fully taxable. For example, at &rupee;12L CTC: 30% basic gives ~&rupee;80,900/month in-hand vs 50% basic which gives ~&rupee;74,900/month in-hand — a difference of &rupee;6,000/month. But 50% basic adds ~&rupee;28,800/year more to your PF. Use the Optimize Structure tab to see the exact trade-off for your CTC.
The old regime may save more tax if you have significant deductions: Section 80C (PF + PPF + ELSS + LIC = up to &rupee;1.5L), Section 80D (health insurance = &rupee;25K–&rupee;1L), HRA exemption (if you live in rented accommodation in a metro), Section 24(b) (home loan interest up to &rupee;2L), and NPS 80CCD(1B) (&rupee;50K). As a rule of thumb: if your total deductions exceed &rupee;3.75L (beyond the &rupee;50K standard deduction), the old regime likely saves more. For CTC below &rupee;12–15L, the new regime is almost always better due to the rebate u/s 87A (zero tax up to &rupee;12L taxable income).
Budget 2025 revised the new regime slabs for FY 2025-26: (1) Tax-free limit raised to &rupee;4L (from &rupee;3L). (2) Rebate u/s 87A extended to &rupee;12L taxable income (from &rupee;7L), meaning effectively zero tax up to &rupee;12,75,000 gross income (after &rupee;75K standard deduction). (3) Revised slabs: 0–4L nil, 4–8L 5%, 8–12L 10%, 12–16L 15%, 16–20L 20%, 20–24L 25%, above 24L 30%. (4) Standard deduction remains &rupee;75,000. The new regime is now even more attractive for salaried employees earning up to &rupee;18–20L CTC, as many will pay zero or minimal tax.

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