CTC to In-Hand Salary Calculator
Estimate your monthly in-hand take-home salary from your annual Cost to Company (CTC) after PF, Professional Tax, and Income Tax deductions.
Your total annual CTC package.
Variable performance bonus which is not paid in monthly cycles.
Deductions for Old Regime comparison like LIC, PPF, Home Loan principal, HRA, health insurance.
New Tax Regime Salary Cost Breakdown
Regime Payout Comparison
| Salary Components | New Tax Regime | Old Tax Regime |
|---|---|---|
| Basic Salary (50%) | ₹45,000 | ₹45,000 |
| House Rent Allowance (HRA) | ₹22,500 | ₹22,500 |
| Other Allowances & Perks | ₹17,100 | ₹17,100 |
| Variable Pay / Bonus | ₹10,000 | ₹10,000 |
| Provident Fund (PF Employee) | - ₹5,400 | - ₹5,400 |
| Professional Tax (PT) | - ₹200 | - ₹200 |
| Income Tax Deducted | - ₹0 | - ₹5,424 |
| Net Take-Home Salary | ₹79,000 | ₹73,576 |
Salary CTC Calculation Rules
New Regime calculation applies standard deduction of ₹75,000 for FY 2025-26. Old Regime comparison automatically adds your employee PF contributions to saving section 80C along with your custom entered tax-saving deductions.Why Your CTC and In-Hand Salary Differ
| Component | Appears in CTC | Hits Bank Account |
|---|---|---|
| Basic Salary | Yes | Yes (taxable) |
| HRA | Yes | Yes (partly exempt) |
| Special Allowance | Yes | Yes (taxable) |
| Employee PF (12%) | Yes | NO — goes to PF account |
| Employer PF (12%) | Yes | NO — employer pays separately |
| Gratuity (4.81%) | Yes | NO — paid after 5 years service |
| Medical Insurance | Yes | NO — paid as insurance premium |
| Income Tax (TDS) | NO | Deducted from your salary |
Typical CTC Structure by Salary Level
| Annual CTC | Approx Monthly In-Hand |
|---|---|
| Rs 3L | Rs 22,000-24,000 |
| Rs 5L | Rs 36,000-39,000 |
| Rs 8L | Rs 56,000-60,000 |
| Rs 10L | Rs 68,000-73,000 |
| Rs 12L | Rs 80,000-85,000 |
| Rs 15L | Rs 98,000-1,05,000 |
| Rs 20L | Rs 1,25,000-1,35,000 |
(New regime assumed, standard deductions only)
State-Wise Professional Tax (PT)
Professional tax is a direct tax levied by state governments in India. It is deducted from your gross salary by your employer. The maximum annual limit is ₹2,500.
New vs Old Regime Impact on Take-Home
- New Tax Regime: Offers lower tax rates but does not allow major deductions like HRA, 80C (PPF, LIC), or 80D (Health Insurance). The standard deduction of ₹75,000 is available for salaried employees. Generally better for CTCs up to ₹7.75 Lakhs where tax is essentially zero.
- Old Tax Regime: Has higher tax rates but allows you to claim various exemptions (HRA, LTA) and deductions (80C, 80D, 24b Home Loan Interest). Better for higher CTCs if you have significant investments, rent receipts, and home loans.
💡 Tip: This calculator automatically compares both regimes and tells you which one gives you a higher in-hand salary!
Frequently Asked Questions
What is CTC (Cost to Company)?
CTC is the total gross amount an employer spends on an employee in a year. It includes direct benefits like Basic Salary and HRA, plus indirect benefits like Employer's PF contribution, Gratuity, and medical insurance premiums.
Why is my In-Hand salary much lower than my CTC?
Your CTC includes components that you don't receive monthly in your bank account. Deductions like Employee PF, Employer PF, Gratuity, Professional Tax, and Income Tax (TDS) reduce your final in-hand salary.
Is Employer PF part of CTC?
Yes, almost all companies structure their CTC to include the Employer's share of the Provident Fund (usually 12% of Basic salary). While it is part of your CTC, it goes directly to your PF account, not your bank.
What is Gratuity in CTC?
Gratuity is a lump sum benefit paid by employers to employees who complete 5 years of continuous service. It is usually calculated at 4.81% of your basic salary. Though shown in your annual CTC, you only receive it upon resigning after 5 years.
How much is deducted for PF?
Standard PF deduction is 12% of your Basic Salary from your side (Employee Contribution), plus a matching 12% from the employer's side. Both are deducted from your overall CTC.
Can I opt out of PF to increase in-hand salary?
If your Basic salary is above ₹15,000 per month, you can choose to opt out of PF at the start of your employment (if the company allows it and you don't already have an active UAN). However, it is not recommended as PF is a great tax-free retirement corpus.
Does CTC include variable pay or bonus?
Yes, most companies include performance bonuses, variable pay, or joining bonuses in the CTC. However, variable pay is not guaranteed and depends on your or the company's performance, meaning your actual earning might be lower than the stated CTC.
Is food allowance or Sodexo part of CTC?
Yes, meal vouchers, cab facilities, or internet allowances are usually factored into the CTC under 'perquisites' or 'allowances'. They might give you tax benefits but reduce the liquid cash hitting your bank account.
Frequently Asked Questions
What is CTC (Cost to Company)?
CTC represents the total amount of money an employer spends on hiring and maintaining an employee for a year. It includes direct salary components (basic, HRA, allowances), indirect benefits (meals, cabs, medical insurance), and statutory contributions (Employer's EPF, Gratuity).
Why is in-hand salary lower than CTC?
In-hand salary is lower than CTC because CTC contains components like employer contributions to PF, insurance premiums, gratuity, and variable performance payouts that are not paid monthly. Additionally, standard taxes (Income Tax/TDS and Professional Tax) are deducted before you receive cash.
How is Basic Salary calculated?
In standard Indian salary structures, Basic Salary is usually set at 40% to 50% of the fixed portion of CTC. HRA is then calculated as 40% (non-metro) or 50% (metro cities) of the Basic Salary. The rest of the CTC is distributed among other allowances (LTA, special, medical, etc.).
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