Employer PF: 12% of basic + DA, often part of CTC.
Employer Gratuity: 4.81% of basic, accrues but is not paid monthly.
Employee PF: 12% of basic + DA, deducted from gross.
Professional Tax: ₹150-200 per month, varies by state.
Income Tax: as per slab + cess, divided by 12.
Worked Examples
CTC ₹15,00,000 with basic 40% (₹6,00,000), HRA 20% (₹3,00,000), other allowances ₹4,30,000, employer PF ₹72,000, gratuity ₹28,800.
Gross monthly = (15,00,000 − 72,000 − 28,800)/12 = ₹1,16,600.
Employee PF = 72,000/12 = ₹6,000. Professional tax = ₹200.
New regime tax on (15 L − 75 K std − 72 K employer PF for new regime) ≈ ₹1,30,000/year ≈ ₹10,833/month.
In-hand monthly ≈ ₹99,567.
About the In-Hand Salary Calculator
Your 'gross salary' and your 'take-home salary' are often two very different numbers in India. Between the employer's promises and the actual money that hits your bank account lies a forest of deductions—PF, PT, TDS, and more. This in-hand salary calculator is updated for the FY 2025-26 tax slabs to show you exactly how much cash you will have for your monthly expenses.
The Standard Components of an Indian Salary Slip
1. Basic Salary: Usually 40-50% of the total CTC. It is the base for PF and HRA calculations.
2. HRA (House Rent Allowance): Typically 40-50% of Basic. Tax-free under certain conditions in the Old Regime.
3. Special Allowance: A balancing figure that is fully taxable. Most companies put the remainder of the CTC here.
4. LTA (Leave Travel Allowance): Tax-free twice in a block of four years, only in the Old Regime.
5. Standard Deduction: A flat ₹75,000 (New Regime) or ₹50,000 (Old Regime) reduction in taxable income for all salaried employees.
Mandatory Deductions in India
- Employee Provident Fund (EPF): In most companies, 12% of your Basic salary is deducted and sent to your PF account. Your employer also contributes an equal 12%. This is a forced saving that grows at 8.25% (current rate) tax-free.
- Professional Tax (PT): A small state-level tax, usually capped at ₹200-250 per month. It is mandatory in states like Maharashtra, Karnataka, and West Bengal.
- TDS (Income Tax): This is the biggest deduction. Based on your regime choice (Old vs New), your employer will deduct tax every month. Our calculator provides a side-by-side comparison to help you choose the best regime for your salary level.
The 2025-26 New Tax Regime Impact
With the latest budget changes, the New Tax Regime has become very attractive for those earning up to ₹10-12 Lakh per year. With a standard deduction of ₹75,000 and the Section 87A rebate, someone with a CTC of ₹7.75 Lakh might pay zero income tax, resulting in a very high in-hand salary. However, for those in higher brackets (above ₹20 Lakh) with home loans and high rents, the Old Regime might still offer a higher monthly take-home.
Why Your In-Hand Salary Might Vary Month-to-Month
In India, it is common for the take-home pay to dip in the last quarter (Jan-March). This happens if you haven't submitted your investment proofs (80C, 80D, Rent) to your HR on time. The company then assumes you have zero deductions and increases your monthly TDS to recover the shortfall. Using this calculator in April helps you plan your investments so your take-home remains stable throughout the year.
CTC vs In-Hand: The Bonus Trap
Be careful of the 'Variable Pay' or 'Bonus' component. Many Indian companies include a 10-20% performance bonus in the 'Gross Salary' figure. However, this is paid only once a year. When calculating your monthly budget for EMIs and rent, only consider the Fixed Monthly Gross minus deductions. Our calculator helps you separate the 'On-Paper' CTC from the 'In-Pocket' cash.
Frequently Asked Questions
Why is my in-hand salary lower than CTC/12?
CTC includes employer-paid components (employer PF, gratuity, insurance premium) that never reach your bank account, plus statutory deductions (employee PF, professional tax, income tax) deducted from your salary. The gap is typically 25-40%.
Is gratuity always part of CTC?
Most companies include gratuity (4.81% of basic) as a CTC line item, but you only receive it after 5 years of continuous service. It accrues but is not paid out monthly.
Can I opt out of EPF?
If your starting basic + DA exceeds ₹15,000 and you have never been an EPF member before, you can opt out at the time of joining. Existing members cannot opt out.
How is professional tax calculated?
Professional tax is a state-level tax. Maharashtra: ₹200/month for income above ₹10,000/month. Karnataka: ₹200/month above ₹15,000/month. Some states like UP, Punjab and Haryana have no professional tax.
What is the difference between gross salary and in-hand salary?
Gross salary is your CTC minus employer-paid components (employer PF, gratuity, insurance). In-hand salary is gross minus statutory deductions (employee PF, PT, TDS). The take-home is what hits your bank account.