Salary & Tax · Salary
Salary Calculator — CTC to In-hand (India)
See what your CTC really pays each month. Split it into basic, HRA and allowances, take out the employer's PF, gratuity and insurance, then your PF, professional tax and income tax under the cheaper regime — with the full salary structure, monthly and yearly.
Your inputs
Quick start — try a typical case
₹ 12 lakh
Under the labour codes, wages (basic + DA) should be at least 50 % of pay, so many employers now set basic at 50 %.
Commonly 50 % of basic in metros, 40 % elsewhere.
Paid separately (often yearly); it's taxed but not part of your monthly in-hand.
EPF wage ceiling: ₹25,000 a month (From 17 Sep 2026).
₹ 2.4 thousand
Set by your state; at most ₹2,500 a year. Use 0 if your state doesn't levy it.
For the HRA exemption.
Your own PF already counts toward the ₹1.5 lakh 80C limit.
Your result Live
Monthly In-hand Salary
₹91,396
From a CTC of ₹12,00,000 · new tax regime (cheaper)
- Yearly Take-home (incl. variable pay)
- ₹10,96,754 · 91.4% of CTC
- Income Tax
- ₹0 a year · ₹0 a month
- Tax — New vs Old Regime
- ₹0 vs ₹1,31,586
- Your PF (monthly)
- ₹3,000 + employer's ₹3,000 = ₹6,000 saved
- Monthly Pay Before Tax
- ₹91,396
- Take-home · 91%₹10,96,754
- Income tax · 0%₹0
- PF (you + employer) · 6%₹72,000
- Gratuity, insurance & PT · 3%₹31,246
Salary structure
11 rowsIncome tax is spread evenly over 12 months, as employers deduct TDS. Tax on the variable pay is included in that monthly figure.
Gratuity is paid only after 5 years with the employer (1 year for fixed-term employees under the Code on Social Security).
Section names are the familiar Income-tax Act, 1961 ones (80C, 80D, 87A…). The Income-tax Act, 2025, in force from 1 April 2026, renumbered them — 80C is now Section 123 and the 87A rebate Section 156 — without changing the limits used here.
An estimate from the assumptions you entered, not a guaranteed outcome.
How this is calculated
Gross = CTC − employer PF − gratuity − insurance − variable pay · In-hand = (Gross − your PF − professional tax − income tax) ÷ 12
- PF
- 12 % of basic, on basic up to the ₹25,000/month wage ceiling unless your employer contributes on full basic
- Gratuity
- 15/26 of a month's basic per year = 4.81 % of yearly basic
- Income tax
- Computed by the Income Tax calculator's engine for FY 2026-27, with your PF counted under 80C in the old regime
CTC (cost to company) includes money you never see each month: the employer's PF contribution, gratuity and insurance. Take those out to get gross salary; then your own PF, professional tax and income tax come off to leave your in-hand pay. Raising the basic share increases PF (savings) and gratuity but lowers monthly in-hand.
Assumptions & sources
- Tax for FY 2026-27 (rules checked 2026-10-11); the old-regime figure uses your PF plus the extra 80C, 80D, HRA and home-loan inputs.
- Employer and employee PF both 12 % of the same base; no voluntary PF, NPS or meal cards.
- Every salary structure differs — check your offer letter for the actual components.
- 1Enhancement of EPFO wage ceiling to ₹25,000 — gazette notification S.O. 5109(E) — Ministry of Labour & Employment (2026-09-17). Approved by the Union Cabinet on 16 Sep 2026 (PIB).
- 2Income-tax slabs under the new tax regime (Section 115BAC; Section 202 of the Income-tax Act, 2025), rebate and standard deduction — Income Tax Department. Unchanged by Budget 2026.
- 3Tax rates for individuals and rebate under section 87A (old regime) — Income Tax Department
- 4Code on Social Security, 2020 — Chapter V (Gratuity) — Ministry of Labour & Employment
Calculator ID PAY-IN-SALARY-001 · version 1.0.0
Common questions
How much of my CTC will I take home?
Typically 65–85 %, depending on PF, gratuity, insurance and tax. Higher salaries keep a smaller share because tax rises faster.
Why is my in-hand lower than CTC ÷ 12?
CTC includes the employer's PF, gratuity and benefits, and your own PF, professional tax and income tax are deducted from what's left.
Should I ask for a higher basic?
A higher basic means more PF and gratuity (long-term savings) and a bigger HRA exemption in the old regime, but less monthly cash. Under the labour codes, basic plus DA should be at least half your pay.