In-Hand Salary Calculator

CTC, gross salary and in-hand salary

• CTC (cost to company): everything your employer spends on you in a year, including their EPF contribution and gratuity.
• Gross salary: CTC minus employer EPF and gratuity. This is the earnings total on your payslip.
• In-hand salary: gross salary minus your EPF, professional tax and income tax. This is what reaches your bank account.

How in-hand salary is calculated

Gross salary = CTC − employer EPF − gratuity

In-hand salary = gross salary − your EPF − professional tax − income tax

Worked example: ₹12 lakh CTC

Basic at 50% of CTC, HRA at 50% of basic, EPF at 12% of full basic, new tax regime:

• Basic ₹6,00,000 · HRA ₹3,00,000 · employer EPF ₹72,000 · gratuity ₹28,860
• Special allowance = ₹12,00,000 − ₹6,00,000 − ₹3,00,000 − ₹72,000 − ₹28,860 = ₹1,99,140
• Gross salary = ₹10,99,140
• Income tax = ₹0 (taxable income ₹10,24,140 after the ₹75,000 standard deduction is below ₹12 lakh)
• In-hand = ₹10,99,140 − ₹72,000 EPF − ₹2,400 professional tax = ₹10,24,740 a year, about ₹85,400 a month

If the employer calculates EPF on the ₹25,000 wage ceiling instead (₹3,000 a month), the same CTC gives about ₹91,400 a month.

CTC to in-hand salary: quick reference

Monthly take-home in the new regime, with basic at 50% of CTC, HRA at 50% of basic and ₹2,400 a year professional tax:

Up to about ₹12 lakh CTC, income tax is zero in the new regime, so the difference comes only from EPF. At ₹6 lakh the basic is ₹25,000 a month, exactly the ceiling, so both columns match.

EPF: lower take-home, but not lost money

A higher EPF deduction lowers your monthly pay, but the money goes into your provident fund, which earned 8.25% for FY 2025-26, and your employer adds the same amount. If your basic is above ₹25,000 a month, you can usually ask your employer to restrict EPF to the ₹25,000 wage ceiling (₹15,000 until 16 September 2026) to raise your take-home, at the cost of a smaller retirement fund.

New or old tax regime?

The calculator shows your take-home in both regimes. The new regime usually wins unless you claim large deductions in the old one, such as HRA on substantial rent together with tax-saving investments (formerly 80C) and a home loan. For the full comparison with all deductions, use the Income Tax Calculator.

When to use a different calculator

• Working out your HRA exemption? Use the HRA Exemption Calculator.
• Got a raise or a new offer? Use the Salary Hike Calculator.
• Leaving after five years or more? Use the Gratuity Calculator.
• Checking your statutory bonus? Use the Bonus Calculator.
• State-wise professional tax? Use the Professional Tax Calculator.