How to use the in-hand salary calculator
- Enter your annual CTC and basic salary percentage.
- Set the professional tax and PF options.
- Pick a tax regime to see the estimated monthly in-hand salary.
About this tool
Take-home pay is lower than CTC because of employer and employee PF, professional tax and income tax. Enter your CTC and basic salary share, choose a tax regime, and get an estimate of the monthly amount that reaches your bank account. Real payslips vary with allowances, variable pay and insurance.
CTC, gross and in-hand are three different numbers
CTC (cost to company) is everything your employer spends on you in a year, including employer PF and benefits. Gross salary is what is paid before deductions. In-hand, or take-home, salary is what reaches your bank after employee PF, professional tax, income tax (TDS) and any other deductions.
Two examples with the default assumptions
These use the new tax regime, basic salary at 40% of CTC, PF capped at ₹1,800 a month each for you and your employer, and professional tax of ₹200 a month.
| Annual CTC | Income tax | Estimated monthly in-hand |
|---|---|---|
| ₹12,00,000 | ₹0 | ₹96,200 |
| ₹18,00,000 | ₹1,46,307 | ₹1,34,008 |
The ₹12 lakh case pays no income tax under the new regime because of the rebate and standard deduction. The gap between ₹1,00,000 and ₹96,200 each month is employer PF, employee PF and professional tax.
Why the labour codes can lower your take-home
Under the new labour codes, wages (basic plus DA) generally have to make up at least 50% of total pay. If your employer raises basic from 40% to 50% of CTC, PF and gratuity are calculated on a larger base. Your retirement benefits grow, but if PF is not capped, your monthly in-hand pay falls. Try changing the basic percentage and turning the PF cap on and off to see the effect.
What changes your result
- Basic as a percentage of CTC, which drives PF and gratuity.
- Whether PF is capped at ₹15,000 of basic or applied to the full basic.
- Professional tax, which depends on your state and is zero in some states.
- Tax regime. The old regime lets you reduce tax with deductions such as 80C and HRA.
- Variable pay, insurance, meal cards and other CTC components, which this estimate does not model.
Frequently asked questions
Why is my payslip different?
Companies structure CTC differently with insurance, gratuity, variable pay, and allowances. This is a quick estimate, not your exact payslip.
What is professional tax?
A state tax, usually up to ₹2,500 a year. Some states charge none. Enter your monthly amount.
Is PF deducted on full basic?
It depends. Many employers cap PF at ₹15,000 of basic, which is ₹1,800 a month. Untick the cap if yours uses full basic.
Why is my in-hand salary lower than gross?
Because of your PF contribution, professional tax and TDS on income tax. Some employers also deduct insurance or other recoveries.
Is employer PF part of my CTC?
Usually yes. It is paid into your PF account instead of your bank account, so it is part of CTC but not part of take-home.