CTC to In-Hand Salary Calculator India
Calculate your exact monthly take-home salary from your annual CTC. View instant component breakdowns of basic salary, HRA, EPF deductions, professional tax, and income tax under both New and Old tax regimes.
Enter Salary Details
FY 2026–27 (AY 2027–28)All calculations and financial outputs on SalaryGrid are estimates based on prevailing Indian statutory rules and standard mathematical formulas. Actual numbers may vary based on individual employer compensation policies, state-specific professional taxes, non-taxable allowances, and official banking terms. Always consult a qualified Chartered Accountant (CA) or certified financial planner before making legal or tax decisions.
Complete Component Breakup
| Component | Monthly (₹) | Annual (₹) | Type |
|---|---|---|---|
| Basic Pay | ₹50,000 | ₹6,00,000 | Earning |
| House Rent Allowance (HRA) | ₹20,000 | ₹2,40,000 | Earning |
| Special Allowance | ₹24,000 | ₹2,88,000 | Earning |
| Gross Salary (A) | ₹94,000 | ₹11,28,000 | Gross Pay |
| Employee EPF (12% of Basic) | -₹6,000 | -₹72,000 | Deduction |
| Professional Tax (PT) | -₹200 | -₹2,400 | Deduction |
| Income Tax (TDS Estimate) | -₹5,022 | -₹60,268 | Deduction |
| Net Monthly In-Hand Salary | ₹82,778 | ₹9,93,332 | Net Take-Home |
* All calculations are computed dynamically in compliance with Income Tax Act, 1961 provisions for FY 2026-27 (AY 2027-28) and EPFO rules.
Your employer's ₹12.0 LPA CTC does not mean ₹1,00,000 reaches your bank account every month. Statutory employee EPF (12%), employer PF contributions, state professional tax, and income taxes account for the ₹17,222/month difference. Your actual liquid take-home retention is 83% of CTC.
Compare Offer A vs Offer B side-by-side to see which pays more liquid cash.
Calculate what percentage increment you need to hit your target salary.
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What is CTC (Cost to Company)?
Cost to Company (CTC) is the complete annual expenditure that an employer invests in an employee. It encompasses all monetary and non-monetary components including:
- Direct Earnings: Basic Salary, House Rent Allowance (HRA), Special Allowances, Conveyance, and Medical allowances.
- Indirect Benefits: Employer PF Contribution (12% of basic), Statutory Gratuity provision (~4.81% of basic), and group health insurance cover.
- Variable Pay: Annual performance incentives, retention bonuses, and stock options (ESOPs).
What is In-Hand (Take-Home) Salary?
In-Hand Salary (also called Net Take-Home Pay) is the actual disposable liquid cash deposited into your bank account on the last day of each month.
It is derived after deducting mandatory employee contributions and taxes from your gross monthly salary:
CTC vs Gross Salary vs Take-Home Salary: Key Differences
Understanding these three distinct numbers is critical when comparing job offers or negotiating annual salary increments in India.
| Feature | Cost to Company (CTC) | Gross Salary | In-Hand (Take-Home) Salary |
|---|---|---|---|
| Definition | Total annual cost incurred by employer | Total compensation before statutory employee deductions | Actual net salary credited to employee bank account |
| Includes Employer PF & Gratuity? | Yes (Included in total CTC) | No (Excluded from Gross) | No (Excluded) |
| Includes Employee Deductions? | Yes | Yes (Deductions not yet subtracted) | No (All deductions already subtracted) |
| Calculation Frequency | Quoted Annually (e.g. ₹12 LPA) | Monthly & Annual | Monthly Cash Inflow |
How to Calculate In-Hand Salary from CTC (Step-by-Step Formula)
Follow this standard Indian payroll formula to compute your exact net salary:
Calculate Gross Salary
Subtract Employer PF (12% of Basic) and Gratuity (4.81% of Basic) from annual CTC to find Gross Salary.
Compute Basic & HRA
Basic Pay is typically 40%–50% of CTC. HRA is set at 40%–50% of Basic depending on metro or non-metro city.
Deduct Employee EPF & PT
Deduct 12% Employee EPF from basic pay, plus State Professional Tax (standard ₹200 per month).
Subtract Income Tax (TDS)
Calculate annual income tax under New Tax Regime (with standard ₹75,000 deduction), divide by 12, and subtract TDS.
Popular CTC Packages & In-Hand Salary in India
Estimated monthly take-home figures under the New Tax Regime (with standard deduction):
Frequently Asked Questions
Clear answers to common questions about CTC, in-hand calculations, and Indian tax deductions.
How is monthly in-hand salary calculated from annual CTC in India?
To convert annual CTC to monthly in-hand salary: First, subtract employer-side benefits (Employer EPF 12% and Gratuity ~4.81%) from the annual CTC to arrive at your Gross Annual Salary. Divide Gross Salary by 12 for monthly gross pay. Finally, subtract monthly Employee EPF (12% of basic), Professional Tax (₹200/mo), and estimated monthly Income Tax TDS based on your tax regime.
What is the difference between CTC, Gross Salary, and In-Hand Salary?
CTC (Cost to Company) is the total annual cost your employer incurs to hire you, including employer PF, gratuity provisions, and annual bonuses. Gross Salary is the total compensation paid directly to you before any statutory employee deductions. In-Hand (Take-Home) Salary is the actual net cash deposited into your bank account after deducting Employee PF, Professional Tax, and Income Tax (TDS).
Is employer EPF contribution included in CTC?
Yes. In almost all Indian corporate offer letters, the employer's 12% contribution to EPF and statutory gratuity provision are included inside the CTC package. However, these are deducted before calculating your monthly gross pay.
How much in-hand salary will I get for a ₹10 LPA CTC?
For a ₹10 Lakhs CTC package in India, your estimated monthly in-hand salary is approximately ₹69,970 to ₹74,000 under the New Tax Regime (FY 2026-27 / AY 2027-28). This accounts for ₹5,000/month employee EPF (12% of basic), ₹200/month Professional Tax, and ₹3,163/month income tax TDS with the standard ₹75,000 deduction.
Which tax regime gives more in-hand salary for salaried employees?
The New Tax Regime (Section 115BAC) generally yields higher monthly in-hand take-home pay for individuals earning up to ₹15–20 LPA without large home loan interest deductions (Section 24b) or high rent claims under Section 10(13A). The Old Tax Regime may be beneficial if total deductions (80C, 80D, HRA, home loan) exceed ₹3.75 to ₹4 Lakhs annually.
Why does my salary slip show less money than my offer letter?
Offer letters showcase annual CTC, which includes annual components (like year-end performance bonuses, employer PF share, and medical insurance premiums) that are not part of monthly cash disbursements. Furthermore, monthly salary slips reflect mandatory employee deductions (12% EPF, ₹200 PT, and TDS withholdings).
All calculations and financial outputs on SalaryGrid are estimates based on prevailing Indian statutory rules and standard mathematical formulas. Actual numbers may vary based on individual employer compensation policies, state-specific professional taxes, non-taxable allowances, and official banking terms. Always consult a qualified Chartered Accountant (CA) or certified financial planner before making legal or tax decisions.
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