Salary Calculator
Break down your CTC into basic, HRA, PF and estimate your in-hand salary.
Affects HRA calculation (50% vs 40%)
Standard for most companies
Estimated Monthly In-Hand
₹89,000
*After approx. tax and PF deductions. Excludes variable pay which is paid separately.
How the Salary Calculator works
Reviewed by Dinesh Babu · Last updated July 2026
This calculator breaks your annual CTC into its components — basic, HRA, special allowance, employer PF and gratuity provision — and estimates your monthly in-hand salary after employee PF, professional tax and income tax (TDS). CTC (cost to company) is what your employer spends on you in total; it is not what lands in your bank account.
The gap between CTC and take-home exists because CTC includes money that never reaches you as cash: the employer's PF contribution goes into your EPF account, the gratuity provision is set aside for later, and your own PF, professional tax and income tax are deducted from your gross. This tool shows exactly where each rupee goes so an offer letter's headline number stops being a mystery.
From CTC to in-hand
In-hand = Gross salary − employee PF − professional tax − TDS
Gross = CTC − employer PF − gratuity provision. Employee and employer PF are each 12% of basic (basic + DA).
The building blocks of a salary structure
- Basic salary: usually 40-50% of CTC. It drives PF, gratuity and (in the old regime) HRA exemption limits.
- HRA: often 40-50% of basic; partly tax-exempt in the old regime if you pay rent.
- Special/other allowances: the flexible, fully taxable balancing amount.
- Employer PF: 12% of basic, paid into your EPF — part of CTC but not take-home.
- Gratuity provision: an annual set-aside toward gratuity payable after 5 years' service.
- Professional tax: a small state-level tax, capped at ₹2,400-2,500/year in most states; not levied in some states.
How to raise your in-hand salary
Choosing the tax regime that suits your deductions is the biggest lever — the new regime often gives higher take-home for people with few deductions, while the old regime can win if you have significant 80C, HRA or home-loan claims. This calculator, together with the income-tax calculator, lets you compare.
Beyond that, some employers allow you to structure tax-friendly allowances or adjust the basic percentage. A lower basic increases immediate cash but reduces forced EPF savings and gratuity — a trade-off between spending power now and retirement corpus later.
₹12 lakh CTC, typical structure
Say basic is 45% of CTC = ₹5,40,000/yr (₹45,000/month). Employer PF at 12% of basic = ₹64,800/yr, and a gratuity provision of roughly ₹26,000/yr are part of CTC but not paid as cash. Gross pay is therefore about ₹11,09,000. From gross, employee PF (₹64,800/yr) and professional tax (say ₹2,400/yr) are deducted, plus any TDS. Under the new regime a ₹12 lakh CTC often has little or no income tax, so monthly in-hand typically lands around ₹85,000-90,000 depending on the exact split.
Why two people with the same CTC take home different amounts
A higher basic means higher PF on both sides — good for retirement savings but lower immediate cash. Someone with basic at 50% of CTC keeps less in hand each month than someone at 40%, even at identical CTC, because more is diverted into EPF.
Common mistakes to avoid
- Comparing two job offers only by CTC. A higher CTC with a higher basic or more variable pay can mean lower guaranteed monthly cash.
- Forgetting that employer PF and the gratuity provision are inside CTC but never paid as salary.
- Assuming the whole HRA component is tax-free — only part of it is exempt, and only under the old regime.
- Ignoring professional tax and TDS when estimating take-home; both reduce the monthly figure.
- Treating variable pay or joining bonuses as guaranteed monthly income.
Frequently asked questions
Why is my in-hand salary lower than my CTC?+
CTC includes employer contributions (like the 12% employer PF) and the gratuity provision, which are set aside rather than paid as cash. After also deducting your own PF, professional tax and income tax, your take-home is noticeably lower than CTC.
How is basic salary and HRA decided?+
Basic is typically 40-50% of CTC; HRA is often 40-50% of basic (higher for metro cities). Exact splits vary by employer, and a higher basic means more PF on both sides.
What is professional tax?+
A small state-level tax on salaried income, capped at around ₹2,400-2,500 per year in most states and deducted monthly. A few states do not levy it at all.
How much PF is deducted from my salary?+
Employee PF is 12% of basic (basic + DA), deducted from your gross. Your employer separately contributes another 12%, part of which goes to EPF and part to the pension scheme (EPS).
How can I increase my in-hand salary?+
Pick the tax regime that suits you, use available deductions if you are on the old regime, and structure allowances efficiently where your employer allows. Note that a lower basic raises cash now but cuts your EPF savings.
Is the in-hand figure exact?+
It is a close estimate. Actual take-home depends on your employer's exact salary structure, your chosen tax regime and declared investments, so treat it as a planning guide rather than a payslip.