Deep-dive into your offer letter. Calculate Professional Tax, PF, and Gratuity to find your true monthly take-home.
Note: Gratuity is often part of CTC but only paid after 5 years of service. Employee and Employer PF are both calculated on Basic.
In India, CTC is not what you receive in your bank account. It includes your employer's contribution to PF, gratuity, and sometimes even medical insurance premiums. This tool helps you find the actual "In-Hand" salary.
Understanding your In-hand Salary is the first step toward effective budgeting and financial planning. Often, a high "Cost to Company" (CTC) can be misleading due to heavy deductions for retirement benefits, taxes, and perks. Our Salary Calculator helps you break down your CTC to see exactly how much will be credited to your bank account every month.
Gross Salary = Basic + HRA + Special Allowance + Other monthly perks.
1) CTC (Cost to Company): The total amount an employer spends on you, including employer EPF, Gratuity, and Insurance. 2) Gross Salary: The amount before any deductions, but after excluding employer-side retrials. 3) Net/In-hand Salary: The actual 'take-home' pay after your 12% EPF contribution, Professional Tax (PT), and Income Tax (TDS).
The Employee Provident Fund (EPF) is a mandatory deduction of 12% of your Basic + DA. While it reduces your monthly in-hand, it is a powerful tool for long-term tax-free savings. Some employees also opt for Voluntary Provident Fund (VPF) to invest more than the mandatory 12% into the same high-interest account. Our tool accounts for these to give you an accurate take-home figure.
TDS (Tax Deducted at Source) is the largest deduction for high earners. Since the 2024 Budget, the New Tax Regime has become the default for many due to higher standard deductions and lower slabs. However, if you have high HRA and 80C investments, the Old Regime might still be better. Our calculator uses the most current slabs to estimate your monthly tax burden.
Professional Tax (PT) is a small monthly deduction levied by various state governments in India (like Maharashtra, Karnataka, Tamil Nadu). It is usually a fixed amount (around ₹200 per month) based on your salary slab. Although small, it is mandatory and must be accounted for in your payroll calculations.
A CTC of ₹6 Lakhs per annum.
A CTC of ₹24 Lakhs per annum.
CTC (Cost to Company) is the total cost an employer incurs on an employee. In-hand salary is what you actually receive after deductions like EPF, PT, and Income Tax.
The standard employee contribution to EPF is 12% of the Basic Pay + DA. The employer also contributes an equal 12%.
PT is a state-level tax on professions and trades. It is usually capped at ₹2,500 per year and varies by state (e.g., ₹200/month in Maharashtra/Karnataka).
Yes, in most private companies, the employer's 12% contribution is part of your CTC but not part of your gross salary.
Monthly In-hand = (Annual CTC - Annual Deductions - Annual Income Tax) / 12.
Basic salary is the base income of an employee, usually 40-50% of the total CTC. It is the component used to calculate EPF and Gratuity.
Net salary is the same as in-hand salary—the amount credited to your bank account after all statutory and voluntary deductions.
Variable bonuses are usually paid annually or quarterly and are subject to TDS. Our calculator allows you to see your regular monthly 'fixed' take-home.
Not necessarily. A company might have a high CTC due to large ESOPs, Retirals, or Variable Pay, but a lower fixed monthly component.
You can optimize your tax saving investments (80C, 80D), opt for a more tax-efficient salary structure (like NPS), or switch to the New Tax Regime if applicable.