Salary Calculator (In-Hand & Take-Home)

Convert your annual Cost to Company (CTC) into the monthly salary credited to your bank account. Shows employer contributions, employee statutory deductions, and tax liabilities under both regimes.

On an annual CTC of ₹12,00,000, the estimated monthly take-home pay is ₹85,396 (₹10,24,752 per year, or 85.4% of CTC) after total monthly deductions of ₹6,200.

Your CTC & Salary Structure

Enter your annual Cost to Company (CTC) to calculate your monthly in-hand take-home pay.

Annual CTC (Cost to Company)

₹

Total annual compensation package before any employer or statutory deductions.

Basic Salary (% of CTC)

Typically 40% to 50% in Indian corporate payroll.

HRA (% of CTC)

House Rent Allowance, typically 40%–50% of basic.

Income Tax Regime

Include Employer PF in CTCMost Indian employers include their 12% EPF contribution inside the headline CTC.

Include Gratuity Provision in CTCEmployers often factor ~4.81% of basic salary as gratuity accrual in CTC.

Deduct Employee EPF (12% of Basic)Mandatory statutory retirement savings deduction for basic up to ₹15,000/mo.

Annual Professional Tax

₹

Statutory state levy, capped at ₹2,500/year (₹200/month standard).

Monthly Take-Home Pay (In-Hand)

₹85,396

₹₹10,24,752 per year (85.4% of CTC)

Monthly Gross Salary

₹91,596

Annual gross: ₹10,99,154

Total Monthly Deductions

₹6,200

Annual deductions: ₹74,400

Monthly Income Tax (TDS)

₹0

Annual tax liability: ₹0 (NEW regime)

Monthly Employee PF (12%)

₹6,000

Annual PF deposit: ₹72,000

Employer Contributions

₹8,404

PF & Gratuity funded inside CTC: ₹1,00,846/yr

Detailed Monthly & Annual Breakdown

Component	Monthly	Annual
A. Earnings (Gross Salary)
Basic Salary	₹50,000	₹6,00,000
House Rent Allowance (HRA)	₹25,000	₹3,00,000
Special Allowance	₹16,596	₹1,99,154
Total Gross Earnings	₹91,596	₹10,99,154
B. Deductions from Employee
Employee EPF (12%)	-₹6,000	-₹72,000
Professional Tax	-₹200	-₹2,400
Income Tax (TDS)	-₹0	-₹0
Total Deductions	-₹6,200	-₹74,400
Net In-Hand (A - B)	₹85,396	₹10,24,752

Monthly In-Hand Take-Home

₹85,396

Annual: ₹10,24,752 (85.4% of CTC)

Calculations reflect statutory tax rates and standard deductions for FY 2025–26 (AY 2026–27). Variable incentives, joining bonuses, and non-taxable reimbursement perks are excluded from the fixed monthly base.

What it is:: An Indian payroll calculator that breaks down Cost to Company (CTC) into monthly net cash in-hand pay.
What it calculates:: Monthly take-home salary, employee deductions (EPF, Professional Tax, TDS), and employer contributions.

Key Assumptions

Employee EPF is deducted at 12% of basic salary.
Employer EPF is funded within the annual CTC package.
Professional tax is applied at the standard annual rate of ₹2,400.
Income tax is calculated based on the selected tax regime with salaried standard deduction.

How it works

Cost to Company (CTC) is the total annual expenditure an employer incurs on an employee. It includes direct cash earnings, statutory retirement contributions (EPF), insurance benefits, and retirement provisions (Gratuity).

Gross Salary consists of Basic Salary, House Rent Allowance (HRA), and Special Allowance before statutory employee deductions.

Monthly In-Hand Pay is derived by deducting Employee EPF (12% of basic), Professional Tax (capped at ₹200–₹300/month by state statute), and Monthly Income Tax TDS from your gross monthly salary.

Employer contributions (Employer EPF and Gratuity provision) are typically funded out of the headline CTC number and do not reach your monthly bank credit.

Formula

Gross Salary = Basic + HRA + Special Allowance; In-Hand Pay = Gross Salary - (Employee EPF + Professional Tax + Monthly TDS)

CTC: = Cost to Company (Total annual employer package)
Basic: = Basic salary (typically 40%–50% of CTC)
HRA: = House Rent Allowance
EPF: = Employees' Provident Fund (12% of basic salary)
TDS: = Tax Deducted at Source based on chosen tax regime

Under the New Tax Regime (Section 115BAC), a standard deduction of ₹75,000 applies to salaried employees for FY 2025–26.

Example calculation

Annual CTC of ₹12,00,000 (New Tax Regime)

Annual CTC: ₹12,00,000
Monthly Gross Earnings: ₹91,596
Monthly Employee EPF (12%): -₹6,000
Monthly Income Tax TDS: -₹0
Monthly Professional Tax: -₹200
Monthly Take-Home Pay (In-Hand): ₹85,396
Annual Take-Home Pay: ₹10,24,752 (85.4% of CTC)

Frequently asked questions

Why is my in-hand salary significantly less than my CTC divided by 12?

CTC represents total cost to the company, not your cash salary. It includes employer EPF contributions (12%), gratuity accruals (~4.81% of basic), employer insurance, and performance bonuses, plus employee-side deductions like employee EPF, professional tax, and income tax TDS.

What is the standard deduction for salaried individuals?

Under the New Tax Regime (Section 115BAC), the standard deduction was raised to ₹75,000 in Finance (No. 2) Act, 2024. Under the Old Tax Regime, the standard deduction remains ₹50,000.

Is EPF deduction mandatory for all employees?

EPF is legally mandatory for employees whose basic salary is up to ₹15,000 per month in establishments with 20 or more staff. For salaries above ₹15,000, company policy determines whether EPF is deducted on the statutory ceiling (₹1,800/month) or on the actual basic salary (12%).

How does professional tax affect monthly take-home pay?

Professional tax is a state-level statutory levy governed by Article 276(2) of the Indian Constitution, with a nationwide ceiling of ₹2,500 per financial year. Most states deduct ₹200 per month, with ₹300 deducted in February.

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