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CTC to In-Hand Salary Calculator

Enter your annual CTC to see what actually reaches your bank account each month. CTC includes money you never receive monthly — the employer's PF contribution and gratuity — so take-home pay is always noticeably lower than CTC ÷ 12.

Tax year 2026-27. Figures follow your offer letter's structure — adjust the defaults to match it.

Tax regime

At least 50% under the Labour Codes

Often 40% or 50%

Gratuity included in CTC?

Up to ₹2,500; 0 in states that do not levy it

Enter your annual CTC to see your monthly take-home pay.

How to use this tool

  1. Enter your annual CTC from the offer letter.
  2. Check the basic-pay share. The Labour Codes require basic pay (with DA) to be at least half of total pay, so 50% is the default; use your offer letter's figure if it differs.
  3. Set the HRA share, how your employer calculates PF, and whether gratuity is shown inside the CTC — offer letters differ on all three.
  4. Enter your state's professional tax, or 0 if your state does not levy it.
  5. Choose the tax regime. Under the old regime, enter your monthly rent and city for the HRA exemption, and any Section 123 investments beyond your PF.

Formula and method

From CTC to gross salary

Gross = CTC − employer PF − gratuity
Employer PF
— 12% of basic, or of ₹15,000 a month if capped
Gratuity
— basic × 15 ÷ 26 ÷ 12, about 4.81% of basic

From gross salary to in-hand

In-hand = Gross − employee PF − professional tax − income tax

Your own PF contribution matches the employer's and is deducted from your pay. Income tax is worked out as in the income tax calculator; under the old regime your PF counts towards the ₹1.5 lakh Section 123 limit.

HRA exemption (old regime)

Least of: HRA received · rent − 10% of basic · 50% or 40% of basic

50% applies in Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad from tax year 2026-27; 40% applies elsewhere.

Worked examples

₹12 lakh CTC, new regime, 50% basic, full PF, gratuity in CTC

  1. Basic: ₹6,00,000; employer PF 12%: ₹72,000; gratuity 4.81%: ₹28,846
  2. Gross: 12,00,000 − 72,000 − 28,846 = ₹10,99,154
  3. Taxable: 10,99,154 − 75,000 = about ₹10.24 lakh, below ₹12 lakh, so no income tax
  4. In-hand: 10,99,154 − 72,000 employee PF − 2,500 professional tax = ₹10,24,654

About ₹85,388 a month.

₹20 lakh CTC, same structure

  1. Basic ₹10,00,000; employer PF ₹1,20,000; gratuity ₹48,077
  2. Gross ₹18,31,923; new-regime tax ₹1,57,440
  3. In-hand: 18,31,923 − 1,20,000 − 2,500 − 1,57,440 = ₹15,51,983

About ₹1,29,332 a month under the new regime. Under the old regime with ₹30,000 monthly rent in a 50% city and no other investments, it is about ₹1,22,317.

Notes and limitations

  • Offer letters structure CTC differently. Some leave gratuity or insurance out of CTC, some cap PF at the ₹15,000 wage ceiling, and some pay a variable bonus that is part of CTC but not of monthly pay. Match the settings to your own letter.
  • Variable pay, joining bonuses, meal cards, LTA, the employer's NPS contribution, insurance premiums and ESI are not modelled. If part of your CTC is variable, the monthly figure here will be higher than your fixed monthly pay.
  • Gratuity sits in many CTCs but is only paid when you leave, after five years of service (one year for fixed-term employees under the Labour Codes).
  • Professional tax is set by each state, up to ₹2,500 a year, and is deductible only under the old regime.
  • Tax is spread evenly across the year here. Real TDS varies month to month as your employer updates its estimate.

Frequently asked questions

Why is my in-hand salary so much lower than CTC ÷ 12?

Because CTC counts everything the employer spends on you, including its PF contribution and gratuity, which are not paid out each month. Your own PF, professional tax and income tax then come out of what remains.

How do the new Labour Codes affect take-home pay?

Since 21 November 2025, basic pay and DA must make up at least half of total pay. Because PF and gratuity are percentages of basic, a higher basic increases them and can lower monthly take-home pay at the same CTC, while increasing retirement savings.

Is employer PF taxable?

Not up to the limits set in the Act, which few salaried employees reach. The employee's own PF is deducted from pay and, under the old regime, counts towards the Section 123 deduction.

Which cities get the 50% HRA exemption?

From tax year 2026-27, Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. Bengaluru, Hyderabad, Pune and Ahmedabad were added by the Income-tax Rules, 2026. Everywhere else the limit is 40% of basic.

Should I choose the old regime to save on HRA?

Only if your HRA exemption and other deductions are large enough to outweigh the new regime's lower rates. Switch the regime above with your own rent to compare the two take-home figures directly.

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