In-Hand Salary Calculator
Your monthly take-home pay from your CTC
Your Take-Home Pay
- In-hand₹10,24,640(85%)
- Income tax₹0(0%)
- PF (yours + employer's)₹1,44,000(12%)
- Gratuity₹28,860(2%)
- Professional tax₹2,500(0%)
Where your CTC goes
| Per month | Per year | |
|---|---|---|
| CTC | ₹1,00,000 | ₹12,00,000 |
| − Employer's PF | ₹6,000 | ₹72,000 |
| − Gratuity | ₹2,405 | ₹28,860 |
| = Gross salary | ₹91,595 | ₹10,99,140 |
| − Your PF | ₹6,000 | ₹72,000 |
| − Professional tax | ₹208 | ₹2,500 |
| − Income tax (new regime) | ₹0 | ₹0 |
| = In-hand salary | ₹85,387 | ₹10,24,640 |
- 1Enter your CTCFrom your offer letter
- 2Set PF, gratuity and taxDefaults suit most private jobs
- 3See your take-homeMonthly in-hand after all cuts
How is in-hand salary calculated?
Your CTC includes things you never receive monthly, like the employer's PF and gratuity. Take those out to get gross salary, then subtract your own PF, professional tax and income tax.
Gross salary = CTC − employer's PF − gratuity
In-hand = gross − your PF − professional tax − income tax
The 50% wage rule
Under the new labour codes in force since 21 November 2025, basic pay and DA should make up at least half of total pay. A higher basic means more PF and gratuity, which builds savings but trims monthly take-home.
PF on the full basic or the ceiling
Many employers deduct PF on the full basic; others deduct it only on the wage ceiling, now ₹25,000 a month (₹3,000 PF). Check your salary slip and pick the matching option.
Related calculators
Frequently asked questions
Why is my in-hand salary so much lower than my CTC?
CTC counts the employer's PF, gratuity, and sometimes insurance and bonuses that aren't paid monthly. Then your own PF, professional tax and income tax come out of the gross salary.
Which tax regime does this use?
The new regime by default, since it's the default for salaried people. Switch to the old regime and add your deductions to compare.
Are variable pay and bonuses included?
If your CTC includes variable pay, it's spread evenly here. If it's paid once a year, your monthly in-hand will be lower and you'll get a lump sum later.
These results are estimates for planning only, not financial, investment or tax advice. Rates and rules change, and your bank, fund house or employer may calculate slightly differently. Check with them or a qualified adviser before you decide.
Sources
- Income Tax Department: tax rates and slabs
- Union Budget 2026-27 (no change in slabs)
- EPFO: PF contribution and the ₹25,000 wage ceiling
Last reviewed: October 2026