Salary Calculator
CTC to monthly in-hand for Indian salaried employees — accounts for PF, gratuity, professional tax, income tax. Toggle Compare Two Offers mode to evaluate a salary hike or a job switch.
Methodology. Standard salary structure: Basic at configurable % of CTC, HRA/LTA/other in gross. Employer PF: 12% of basic (statutory cap at ₹15K basic = ₹1,800/mo, or actual basic based on toggle). Gratuity at 4.81% of basic. Employee PF: 12% of basic (same mode). Professional tax ₹2,500/year. Standard deduction: ₹75K new / ₹50K old. FY 2026-27 slabs + 87A rebate + 4% cess.
From CTC to in-hand: what gets taken out
CTC (cost to company) is everything your employer spends on you. Your monthly in-hand pay is what is left after four deductions:
- Employer-side costs inside CTC — employer PF (12% of basic) and gratuity (about 4.81% of basic) are part of CTC but never reach your bank account monthly.
- Employee PF — 12% of basic, deducted from salary.
- Professional tax — up to ₹2,500 a year in states that levy it.
- Income tax (TDS) — based on the regime you choose.
Worked example: ₹12 lakh CTC, new regime, FY 2026-27
| CTC | ₹12,00,000 |
| Basic (50% of CTC) | ₹6,00,000 |
| Less employer PF (12% of basic) | − ₹72,000 |
| Less gratuity provision (4.81% of basic) | − ₹28,860 |
| Gross salary | ₹10,99,140 |
| Taxable after ₹75,000 standard deduction | ₹10,24,140 — tax nil thanks to the Section 87A rebate up to ₹12 lakh |
| Less employee PF and professional tax | − ₹74,500 |
| Monthly in-hand | ≈ ₹85,400 |
Many employers cap PF at ₹1,800 a month (12% of ₹15,000), which raises in-hand pay but lowers retirement savings. Check your offer letter.
Comparing two offers
Use the compare mode with each offer’s CTC and basic split. A higher CTC with a large variable component or joining bonus can deliver less monthly cash than a slightly lower fixed offer. Joining bonuses are often recovered if you leave within a year. For a deeper breakdown see how CTC becomes in-hand pay and the best salary structure for tax saving.
FAQs
Which tax regime does the calculator assume?
The new regime by default, which applies unless you opt out. Compare both in our old vs new regime guide.
Is gratuity paid every month?
No. It is paid only when you leave after at least five years of service. Estimate it with the gratuity calculator.
Why is my first salary lower?
Partial-month joining, one-time deductions and the employer’s TDS estimate for the full year often make the first payslip smaller.
Figures last checked October 2026. Calculator results are estimates; actual lender, fund or tax outcomes can differ.