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Calculate now →In-Hand Salary Calculator — CTC to Take-Home Pay
Enter your CTC to see exactly what lands in your bank account every month — with a full breakdown of EPF, professional tax, and income tax deductions. Compares Old vs New regime take-home side by side.
💼 Your CTC Details
Enter figures in rupees. "CTC" is the total annual package shown in your offer letter.
💰 Your Take-Home Pay
Fill in your CTC and click Calculate to see your monthly in-hand salary.
Your results will appear here once you calculate.
How In-Hand Salary Is Calculated
A plain-English walkthrough of every step from CTC to bank account.
1
Subtract employer-side costs from CTC to get Gross Salary
CTC includes costs your employer pays for you but which you never see in your pay cheque — Employer EPF (12% of basic), gratuity provision (4.81% of basic), any insurance premiums, and variable bonus. Removing these gives Gross Salary, which is the actual salary your employer pays you directly.
Gross Salary = CTC − Employer EPF − Gratuity − Bonus − Insurance
2
Split Gross Salary into components
Gross salary is divided into Basic (% you specify), HRA (50% of basic for metro, 40% for non-metro), LTA, and Special Allowance (the balancing remainder). The split matters because each component has different tax treatment — HRA can be partially exempt under the old regime, LTA has limited exemption, special allowance is fully taxable.
Special Allowance = Gross − Basic − HRA − LTA
3
Calculate income tax (TDS) on annual taxable income
Your employer deducts TDS monthly based on projected annual income. We compute this using the same tax engine that powers our Income Tax Calculator — slab rates, standard deduction, 87A rebate, and 4% cess all applied correctly for the regime you choose.
Monthly TDS = Annual Tax Liability ÷ 12
4
Subtract employee deductions to get In-Hand Pay
From Gross Salary, we subtract Employee EPF (12% of basic, capped at ₹1,800/month unless your employer opts for actual basic), ESI if gross is under ₹21,000/month, state Professional Tax, and monthly TDS. What's left is your in-hand salary.
In-Hand = Gross − Employee EPF − ESI − Professional Tax − TDS
Why is this calculation method used?
This follows the standard Indian payroll computation flow used by most HR and payroll software. The key insight is that CTC and Gross Salary are different things — and most people confuse the two. CTC includes employer-side statutory contributions which you accumulate (like EPF and gratuity) but don't receive monthly. Only after separating those can you correctly compute the employee-side deductions and reach actual take-home pay.
Rules applied
EPF: Employees' Provident Funds and Miscellaneous Provisions Act, 1952 — wage ceiling ₹15,000/month (gazette notification dated 29 May 2026, ceiling unchanged). ESI: Employees' State Insurance Act, 1948 — applicable if monthly gross ≤ ₹21,000; employee rate 0.75%, employer rate 3.25%. Gratuity: Payment of Gratuity Act, 1972 — 15/26 of monthly basic per year of service (4.81% per year). Professional Tax: State Finance Acts — varies by state, max ₹2,500/year. Income Tax: Income Tax Act, 2025 (FY 2025-26 slabs, standard deduction ₹75,000 new regime / ₹50,000 old regime, Section 87A rebate).
Important assumptions
This calculator assumes a standard salary structure. Your actual take-home may differ if your employer uses a different component mix, contributes EPF on actual basic above ₹15,000 (or vice versa), provides meal vouchers or other non-cash perks, has a different gratuity policy, or deducts for NPS under Section 80CCD(2). For old regime, HRA exemption is estimated as the full HRA component — your actual exempt HRA may be lower (use our HRA Calculator for exact figures). Variable bonus is excluded from monthly calculations as it is not paid every month.
This is an estimate, not your actual payslip. In-hand salary varies significantly based on your employer's specific salary structure, HR policy, and benefits. For exact figures, check your payslip or consult your HR department. For tax filing advice, consult a qualified chartered accountant.
Frequently Asked Questions
Common questions about CTC, in-hand salary, and statutory deductions.
Why is my in-hand salary much lower than my CTC?
CTC includes employer-side costs (Employer EPF 12% of basic, gratuity 4.81% of basic, insurance) that never appear in your pay cheque, plus employee deductions (Employee EPF, professional tax, income tax TDS). Together these typically reduce your CTC by 25–40%. In-hand is usually 60–75% of CTC depending on your salary level and tax situation.
What is the EPF wage ceiling and how does it affect my deduction?
The EPF wage ceiling is ₹15,000/month — confirmed unchanged as of May 2026. For statutory compliance, employee EPF is capped at 12% of ₹15,000 = ₹1,800/month, regardless of how high your basic salary is. Many companies voluntarily compute EPF on actual basic — check your payslip to confirm which applies to you.
Is gratuity included in CTC?
Yes, most Indian employers include a gratuity provision of approximately 4.81% of basic salary per year in the CTC, but it is only paid out after 5 years of continuous service and never appears in your monthly salary. Subtract it from CTC to get your true gross salary. Some employers show CTC without gratuity — use the toggle in this calculator to match your offer letter.
Which tax regime gives higher in-hand salary?
The New Regime usually wins for people with few deductions — it has lower slab rates and a ₹12 lakh effective zero-tax threshold. The Old Regime can win if you have large HRA exemption, maxed 80C investments, health insurance premiums, and home loan interest — those deductions can push your taxable income down enough to offset the higher rates. This calculator computes both and shows which gives you more take-home.
What is special allowance in my salary?
Special allowance is the residual or balancing component of your gross salary after all named components (basic, HRA, LTA, etc.) are allocated. It is fully taxable under both regimes with no exemption. Employers often use it to make up the total gross, which is simpler but tax-inefficient for employees compared to structured allowances.
When does ESI apply to my salary?
ESI (Employees' State Insurance) applies if your monthly gross salary is ₹21,000 or less, and your employer has 10 or more employees. The employee contribution is 0.75% of gross salary. If your gross exceeds ₹21,000/month, ESI does not apply. Most mid-level and senior employees in the private sector are above this threshold.