CTC to In-Hand Salary Calculator
Get your exact monthly take-home salary from your CTC. Includes PF, professional tax, and income tax (new & old regime) for FY 2024-25.
Calculate Your Take-Home Salary
Enter your CTC and salary structure to get a detailed monthly and annual salary breakup.
What is CTC and In-Hand Salary?
CTC (Cost to Company) is the total amount an employer spends on an employee annually — including salary, benefits, PF contributions, gratuity provisions, and bonuses. Your in-hand salary (take-home pay) is what actually gets credited to your bank account each month.
CTC vs Gross vs Net Salary
- CTC: Everything the company pays on your behalf (includes employer PF, gratuity provision)
- Gross Salary: CTC minus employer PF and gratuity — what you actually earn before deductions
- Net / In-Hand Salary: Gross minus employee PF, professional tax, and income tax TDS
New Regime vs Old Regime (FY 2024-25)
- New Regime: Standard deduction ₹75,000. Slabs: 0-3L=0%, 3-7L=5%, 7-10L=10%, 10-12L=15%, 12-15L=20%, >15L=30%. Rebate u/s 87A if income ≤ ₹7L
- Old Regime: Standard deduction ₹50,000. Can claim HRA, 80C (₹1.5L), 80D, home loan interest etc. Slabs: 0-2.5L=0%, 2.5-5L=5%, 5-10L=20%, >10L=30%
- For most people earning up to ₹10–12L, the new regime results in lower tax
Key Salary Components
- Basic Salary: 40–50% of CTC. PF, gratuity are calculated on this
- HRA: House Rent Allowance — 50% of basic (metro) or 40% (non-metro)
- Employee PF: 12% of basic (capped at ₹15,000 basic for mandatory PF)
- Employer PF: 12% of basic — forms part of CTC, not in-hand
- Professional Tax: ₹200/month in most states, deducted from salary
- Gratuity Provision: 4.81% of basic — retained by employer, paid on exit after 5 years
Worked Example: From CTC to In-Hand
Suppose your CTC is ₹12,00,000 per year. A typical structure might be: Basic ₹5,40,000 (45%), HRA ₹2,16,000, special allowance ₹2,80,000, employer PF ₹64,800, and gratuity provision ₹25,974. Removing the employer PF and gratuity (which never reach you) leaves a gross of about ₹11,09,000. After deducting employee PF (₹64,800), professional tax (₹2,400), and income tax under the new regime, your annual in-hand could be roughly ₹10.1 lakh, or about ₹84,000 per month — noticeably less than the ₹1 lakh per month the headline CTC might suggest.
Why Your In-Hand Is Lower Than Your CTC
The gap between CTC and take-home pay surprises many first-time employees. CTC includes amounts the company spends on you that never appear in your bank account: the employer's PF contribution, the gratuity provision, and sometimes insurance premiums and performance bonuses that are conditional. On top of that, your monthly salary is reduced by your own PF contribution, professional tax, and income tax (TDS). Understanding this breakdown helps you compare job offers on the basis of actual take-home pay rather than the inflated CTC figure.
How to Read a Salary Offer
- Check the basic salary percentage: A higher basic means more PF and gratuity (good for long-term savings) but a slightly lower in-hand.
- Separate fixed from variable pay: Performance bonuses and joining bonuses are not guaranteed monthly income.
- Ask about employer PF treatment: Confirm whether it is included in or on top of the quoted CTC.
- Compare net, not CTC: Always evaluate offers on monthly in-hand salary after tax and deductions.
Frequently Asked Questions — CTC Salary Calculator
CTC (Cost to Company) is everything the employer spends on you — including your salary, employer's PF contribution (12% of basic), gratuity provision (4.81% of basic), and any other benefits. Gross salary is what you earn before employee-side deductions — CTC minus employer PF and gratuity. In-hand (take-home) salary is what hits your bank account: gross minus employee PF (12%), professional tax (~₹200/month), and income tax TDS.
For FY 2024-25, the new regime offers a standard deduction of ₹75,000 and a rebate up to ₹7L income (zero tax). It is generally better for people with CTC up to ₹12–15L who don't have significant deductions. The old regime is beneficial if you can claim substantial deductions: HRA, 80C (₹1.5L), 80D (health insurance), home loan interest (₹2L), etc. Use this calculator to compare both and pick the lower tax option.
Basic salary is usually 40–50% of CTC. It is the foundation on which PF (12%), gratuity (4.81%), and HRA (50% of basic in metros, 40% elsewhere) are calculated. A lower basic salary reduces PF deductions and increases take-home — but also reduces gratuity payout and PF accumulation. Government salary structures typically have higher basic pay ratios.
Professional tax is a state-level tax deducted by the employer from your monthly salary. Most states charge ₹200/month (₹2,400/year) for salaries above a threshold. Maharashtra charges up to ₹2,500/year. Some states like Delhi, Haryana, and Rajasthan do not levy professional tax. It is deductible from your taxable income under the Income Tax Act.
Yes. The employer's PF contribution (12% of basic, or 12% of ₹15,000 = ₹1,800/month if basic exceeds ₹15,000) is included in your CTC. However, it is not paid to you directly — it goes into your EPF account. This amount is not part of your gross or in-hand salary but does build your retirement corpus.
Gratuity provision is 4.81% of your basic salary set aside annually in the CTC calculation (this equals 15/26 days per year). It is not paid monthly — you receive it as a lump sum when you leave after completing 5 years of continuous service. Until then, it remains with the employer. As a result, gratuity provision reduces your effective take-home compensation until you become eligible.