How to use the Salary Calculator (CTC to In-hand)
- Enter your annual CTC and the basic salary percentage from your offer letter.
- Set professional tax for your state and choose PF and gratuity options.
- Pick the tax regime to see monthly and yearly take-home pay.
About this tool
CTC (cost to company) includes things you never receive in hand. This calculator works out: basic = CTC × basic %; employer PF = 12% of basic (or of ₹15,000 a month if capped) — part of CTC but paid into your EPF; optional gratuity = 4.81% of basic; gross salary = CTC − employer PF − gratuity; and in-hand = gross − employee PF (another 12% of basic) − professional tax − income tax.
Income tax uses the FY 2025-26 new regime by default (₹75,000 standard deduction, nil tax up to ₹12 lakh taxable income, 4% cess); switch to the old regime to add 80C and other deductions — your own PF counts towards 80C. Professional tax is a state tax of up to ₹2,500 a year (₹2,400–₹2,500 in many states, nil in some), so change it for your state. Example: ₹12 lakh CTC, 50% basic, uncapped PF → ₹87,800 a month in hand.
Frequently asked questions
What is the in-hand salary for ₹12 lakh CTC?
With 50% basic and full 12% PF on both sides, and ₹2,400 professional tax, the in-hand pay is about ₹87,800 a month under the new regime, which has no income tax at this level.
Why is in-hand salary less than CTC ÷ 12?
CTC includes the employer’s PF and sometimes gratuity and bonuses, and your own PF, professional tax and income tax are deducted from gross pay.
Does a higher basic reduce take-home pay?
Usually yes, slightly, because PF is 12% of basic on both sides. But more goes into your EPF savings, and gratuity is also calculated on basic.
What is the PF cap of ₹15,000?
PF is mandatory only on basic pay up to ₹15,000 a month. Some employers limit contributions to ₹1,800 a month each; others contribute 12% of the full basic.