Salary Calculator: CTC to In-Hand
Find your monthly take-home pay from your CTC (FY 2026-27, new labour code and PF rules)
| Per year | Per month |
Why Your In-Hand Salary Is Less Than Your CTC
Your offer letter says ₹12 lakh a year. Divide by 12 and you'd expect ₹1 lakh a month. Then your first salary arrives – and it's closer to ₹91,000. Where did the rest go?
CTC (cost to company) is everything your employer spends on you – including money you don't receive in your bank account each month, like the employer's PF contribution, gratuity and sometimes bonuses. Then deductions like your own PF, professional tax and income tax come out of what's left. The calculator above walks through every step.
How to Use the Salary Calculator
- Enter your annual CTC from your offer letter.
- Set your basic salary and HRA percentages. If you're not sure, 50% basic and HRA at 50% of basic are common under the new labour codes.
- Add any variable pay and your state's professional tax.
- Choose how your employer calculates PF, whether gratuity is in your CTC, and your tax regime.
From CTC to In-Hand: Step by Step
Here's a ₹12 lakh CTC with 50% basic, in the new tax regime:
| Per Year | Per Month | |
|---|---|---|
| Annual CTC | ₹12,00,000 | ₹1,00,000 |
| – Employer PF (12% of basic, up to ₹25,000/month) | ₹36,000 | ₹3,000 |
| – Gratuity (about 4.81% of basic) | ₹28,846 | ₹2,404 |
| Gross salary | ₹11,35,154 | ₹94,596 |
| – Employee PF | ₹36,000 | ₹3,000 |
| – Professional tax | ₹2,500 | ₹208 |
| – Income tax (new regime) | ₹0 | ₹0 |
| In-hand salary | ₹10,96,654 | ₹91,388 |
Income tax is zero because, in the new regime, taxable income up to ₹12 lakh (after the ₹75,000 standard deduction) is effectively tax-free.
In-Hand Salary for Common CTCs
With 50% basic, HRA at 50% of basic, PF up to the ₹25,000 limit, gratuity in CTC, ₹2,500 professional tax and the new tax regime:
| Annual CTC | Monthly In-Hand | Income Tax (yearly) | Take-Home as % of CTC |
|---|---|---|---|
| ₹6 lakh | ₹42,590 | ₹0 | 85% |
| ₹10 lakh | ₹75,122 | ₹0 | 90% |
| ₹12 lakh | ₹91,388 | ₹0 | 91% |
| ₹15 lakh | ₹1,08,599 | ₹86,260 | 87% |
| ₹20 lakh | ₹1,41,876 | ₹1,74,910 | 85% |
| ₹25 lakh | ₹1,72,658 | ₹2,93,510 | 83% |
| ₹30 lakh | ₹2,00,943 | ₹4,42,070 | 80% |
| ₹50 lakh | ₹3,12,853 | ₹10,51,070 | 75% |
Your exact figure depends on your salary structure, so enter your own numbers above.
Two 2026 Changes That Affect Your Take-Home
1. Higher PF Wage Ceiling (from 17 September 2026)
PF is 12% of your basic salary, from both you and your employer. Until recently, most employers capped this at a basic of ₹15,000 a month – ₹1,800 each. From 17 September 2026, the ceiling rose to ₹25,000 a month, so the contribution can now go up to ₹3,000 each.
On a ₹12 lakh CTC, that cuts monthly take-home by about ₹2,400 (₹93,788 → ₹91,388) – because both your share and your employer's share now come out of the same CTC. But your PF savings rise from ₹43,200 to ₹72,000 a year. It's not lost money; it's money moved into your retirement fund.
2. The 50% Wage Rule (New Labour Codes)
Under the new labour codes, if allowances make up more than half your pay, the excess is counted as wages. So many companies are raising basic salary to at least 50% of pay. A higher basic means higher PF and gratuity – and slightly lower take-home today. On a ₹15 lakh CTC, moving basic from 30% to 50% lowers in-hand pay by about ₹1,000 a month but adds about ₹14,000 a year to your PF and gratuity.
Old or New Tax Regime?
For most salaried people, the new regime gives higher take-home pay. On an ₹18 lakh CTC, someone paying ₹30,000 rent in a metro, with PF plus ₹50,000 of other 80C investments and ₹25,000 of health insurance, takes home ₹1,28,993 a month in the new regime versus ₹1,22,968 in the old. The old regime only wins with large deductions, such as high rent and a home loan together.
Check yours with our Income Tax Calculator and HRA Calculator.
Tips to Read Your Offer Letter
- Separate fixed from variable pay. A ₹15 lakh CTC with 20% variable is really ₹12 lakh fixed – and the variable part isn't guaranteed.
- Check what's included in CTC: gratuity, insurance premiums, meal cards and joining bonuses are sometimes counted, which inflates the headline number.
- Ask about employer NPS. It's one of the few tax breaks that works in the new regime.
- Compare offers on in-hand pay, not just CTC. Two offers with the same CTC can differ by thousands a month.
Questions People Actually Ask Us
What is gross salary? Gross salary is CTC minus your employer's PF contribution and gratuity. It's the total salary paid to you before your own deductions.
Can I reduce my PF to increase take-home? Contributions on basic up to ₹25,000 a month are mandatory. If your employer contributes on your full basic above that, the extra may be optional – ask HR. But remember, PF is tax-efficient retirement savings.
Which states charge professional tax? Many states, including Maharashtra, Karnataka, West Bengal, Tamil Nadu, Telangana and Gujarat, charge up to ₹2,500 a year. Some, like Delhi, don't charge it.
Why does my payslip show different tax each month? Employers spread your estimated yearly tax over the remaining months and adjust it as your declarations and proofs come in.
Disclaimer: This calculator gives an estimate for a resident individual for FY 2026-27. Your actual salary depends on your employer's salary structure, payroll policies and the declarations you submit. Some employers also deduct small amounts like EDLI or admin charges, insurance or meal cards, which aren't included. This calculator has no connection to EPFO or the Income Tax Department. See our full Disclaimer.
Also Try These Calculators on TappingMoney:
- Income Tax Calculator – Compare the old and new tax regimes
- HRA Calculator – How much of your HRA is tax-free
- Gratuity Calculator – Estimate your gratuity
- NPS Calculator – Plan your pension
Page last updated: October 2026 | Free to use | No sign-up needed