In-Hand Salary CalculatorFY 2025-26
Your offer letter says ₹18 lakh. Your bank account says something rather different. This calculator walks the whole distance from CTC to monthly take-home — employer PF, gratuity provision, HRA exemption, professional tax by state, and income tax under both regimes — and shows you every rupee that goes missing along the way.
Highlights
- Full CTC → gross → net bridge, with each deduction itemised and explained.
- Handles the two ways employers quote CTC: employer PF inside it, or on top of it.
- EPF on full basic or restricted to the ₹15,000 statutory ceiling, plus VPF.
- Professional tax for 17 states, on the correct monthly, half-yearly or annual basis.
- Picks the cheaper tax regime automatically, or lets you force one to compare.
Monthly take-home
₹1,22,045
81.36% of your CTC reaches you
Monthly gross
₹1,39,914
Regime applied
New
Saves ₹65,371 a year
Annual income tax
₹1,25,625
HRA exemption
₹2,28,000
Not claimable in the new regime
| Annual CTC | ₹18,00,000 |
|---|---|
| Employer EPF + EPS contributionGoes to your PF account, not your bank account. | − ₹86,400 |
| Gratuity provision (4.81% of basic)Payable only after 5 years of continuous service. | − ₹34,632 |
| Annual gross salary | ₹16,78,968 |
| Fixed annual gross (paid monthly) | ₹16,78,968 |
| Income tax (TDS) | − ₹10,469 |
|---|---|
| EPF (employee share) | − ₹7,200 |
| Professional tax | − ₹200 |
| Take-home | ₹1,22,045 |
Money set aside for you, not paid to you
EPF a month (both sides)
₹13,150
Plus ₹1,250 to EPS pension
Gratuity if you leave now
₹0
Needs five completed years
Professional tax: Exempt up to ₹25,000 a month since April 2023; ₹200 a month (₹2,400 a year) above that.
Everything is calculated in your browser. Nothing you enter is sent to a server or stored.
Why your in-hand salary is so much lower than your CTC
CTC is what you cost your employer for a year. Take-home is what survives after money is diverted to your retirement accounts, held back as a future benefit, or paid to the government on your behalf. The gap is usually 25-35% at mid-to-senior salaries, and almost none of it is negotiable after you sign.
Four things account for nearly the entire difference. Understanding which one is eating your salary tells you whether to negotiate, restructure, or simply accept it.
- Employer EPF: 12% of basic goes to your PF account. It is your money, but you cannot spend it now.
- Gratuity provision: about 4.81% of basic sits in CTC, and you only see it after five years of service.
- Employee EPF: another 12% of basic leaves your payslip before you are paid.
- Income tax and professional tax: deducted monthly as TDS, and the largest single item at higher salaries.
The CTC question that changes everything: is employer PF inside or on top?
Two offers quoting the same ₹20 lakh CTC can differ by nearly ₹1 lakh a year in gross salary purely on this one convention. If employer PF sits inside CTC, it is carved out before you are paid. If it sits on top, your gross equals the full CTC and the PF is genuinely extra.
Most large Indian employers include it inside CTC. Many startups and multinationals quote it on top. The offer letter rarely says which, so the deduction breakup in Annexure A is where you check — and it is a fair question to ask a recruiter before you compare two offers.
A higher basic salary cuts your take-home but builds more wealth
Basic pay drives EPF, gratuity and HRA exemption all at once, which makes the basic percentage the single most consequential number in your salary structure. Raising basic from 30% to 50% of CTC increases both the employee and employer PF contributions, so monthly cash falls while forced retirement savings rise.
Neither setting is objectively better. A high basic suits you if you want disciplined, tax-efficient long-term saving at 8.25% and a larger gratuity. A low basic suits you if you need liquidity now, or if you would rather invest the difference in equity yourself and can actually be relied upon to do it.
The one asymmetry worth knowing: EPF interest is tax-free up to ₹2.5 lakh of your own annual contribution, and EPF is one of very few debt instruments in India offering that. Above that threshold, the interest on the excess becomes taxable.
Which regime leaves you with more money
For FY 2025-26 the new regime gives a ₹75,000 standard deduction and a Section 87A rebate that makes taxable income up to ₹12 lakh effectively tax-free, but denies HRA, 80C, 80D and most other deductions. The old regime keeps all of those and offers a ₹50,000 standard deduction.
The rough dividing line: if your total old-regime deductions come to more than roughly ₹4-4.5 lakh, the old regime usually wins. Below that, the new regime does. Rather than guess, set your actual rent and deductions above and switch the regime toggle — the calculator recomputes take-home both ways.
Renters in metros with a large home loan are the group most likely to still benefit from the old regime. Employees with little rent and no home loan almost always do better under the new one.
Methodology
- Basic pay is derived as your chosen percentage of CTC; EPF wages are basic + DA.
- Employer EPF, the 4.81% gratuity provision and employer NPS are removed from CTC to reach gross salary, when they are quoted inside it.
- Bonus and RSU value are separated out, so monthly figures reflect only fixed pay.
- HRA exemption is the least of the three statutory limbs, and the binding limb is reported.
- Income tax is computed on annual gross under both regimes, then spread over 12 months the way employer TDS behaves.
Scope and assumptions
- Estimates for FY 2025-26 (AY 2026-27) resident individuals; verify against your payslip.
- Employee EPF and VPF are added to your 80C claim, capped at ₹1.5 lakh in the old regime.
- Professional tax is a state levy that is amended periodically.
- Perquisites such as company car, rent-free accommodation and ESOP exercise gains are not modelled.
FAQ
How do I calculate in-hand salary from CTC?
Start with annual CTC and subtract the employer's EPF contribution, the gratuity provision (about 4.81% of basic) and any employer NPS contribution — that gives gross salary. From gross, subtract your own EPF contribution, professional tax and income tax, then divide by 12. This calculator does all of it, including the HRA exemption and the regime comparison.
What percentage of CTC is in-hand salary in India?
Typically 70-80% of CTC at lower salaries and 60-70% at higher ones, because income tax becomes the dominant deduction as you move up the slabs. Someone on ₹8 lakh CTC with no tax liability may take home nearly 90%, while a ₹50 lakh CTC often lands closer to 60% after 30% tax and surcharge.
Is employer PF contribution part of CTC?
It depends entirely on the employer. Most large Indian companies include the employer's 12% inside the quoted CTC, so it reduces your gross salary. Others treat it as a benefit over and above CTC. The toggle at the top of this calculator handles both, and it is worth confirming which convention applies before comparing two offers.
How much EPF is deducted from my salary?
12% of basic + DA from your side, matched by 12% from your employer. If your basic exceeds ₹15,000 a month, employers may either contribute on full basic or restrict contributions to the ₹15,000 statutory ceiling — that choice changes your take-home by up to ₹1,620 a month. Both options are available above.
What is EPS and why does only ₹1,250 go to pension?
Of the employer's 12%, a slice of 8.33% is diverted to the Employees' Pension Scheme rather than your EPF account. That 8.33% only applies to wages up to the ₹15,000 ceiling, so it is capped at ₹1,250 a month. The rest of the employer's contribution goes into your EPF balance and forms part of the lump sum you eventually withdraw.
How is HRA exemption calculated?
It is the least of three amounts: the HRA you actually receive, rent paid minus 10% of basic salary, and 50% of basic if you live in Delhi, Mumbai, Kolkata or Chennai (40% elsewhere). Bengaluru, Pune and Hyderabad count as non-metro for HRA despite being major cities, which surprises a lot of people. HRA exemption is only available in the old regime.
Which states charge professional tax and how much?
Around 17 states levy it, including Maharashtra, Karnataka, Tamil Nadu, West Bengal, Telangana, Andhra Pradesh, Gujarat and Kerala. Delhi, Haryana, Uttar Pradesh, Uttarakhand and Rajasthan do not. The Constitution caps it at ₹2,500 per person per year, so it is never a large number — Maharashtra charges the full ₹2,500 and Karnataka ₹2,400.
Is gratuity part of my in-hand salary?
No. Gratuity sits in CTC as a provision of roughly 4.81% of basic, but it is only payable after five years of continuous service, and you forfeit it if you leave earlier. Treat it as deferred compensation rather than salary. The payout is 15 days' wages for each completed year, tax-free up to ₹20 lakh.
Why is my actual take-home different from this estimate?
The usual reasons: your employer's TDS schedule is not perfectly even across 12 months, your salary structure includes allowances or perquisites not modelled here, you have joined or left mid-year, or reimbursements and flexible benefit components change the taxable portion. Use this as a planning estimate and reconcile against your payslip and Form 16.
Does the new tax regime increase my in-hand salary?
For most employees without large deductions, yes — the ₹75,000 standard deduction plus the 87A rebate up to ₹12 lakh of taxable income means lower monthly TDS and higher take-home. If you claim significant HRA, 80C and home loan interest, the old regime may still leave you with more. Toggle the regime above to see both numbers on your own inputs.
How is bonus and RSU treated in monthly take-home?
Bonus and RSU value are taxable salary, but they are not paid every month. This calculator separates them from fixed pay so your monthly figure reflects what actually lands each month, while still taxing the full annual amount. The annual view adds them back so you can see total compensation.
Is my salary data sent anywhere?
No. Every calculation runs in your browser. Nothing you type is transmitted to a server or stored.