Why is in-hand salary lower than CTC?

CTC includes employer PF, gratuity and other benefits, and your salary is reduced by employee PF, professional tax and income tax.

How is PF calculated?

12% of basic salary is deducted from you and the employer contributes another 12%, here capped at a basic of ₹15,000 per month.

Which tax regime is used?

The new tax regime for FY 2025-26, which is the default for salaried employees.

Is professional tax the same everywhere?

No. It varies by state; ₹2,400 a year is common, and some states don't charge it.

Are bonuses included?

Variable pay is treated as part of CTC. If your bonus isn't guaranteed, subtract it from CTC first.

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CTC to In-Hand Salary— Turn your CTC into monthly take-home pay.

Annual CTC

₹

Basic salary (% of CTC)

Professional tax / year

₹

Monthly in-hand

₹93,795

Annual in-hand

₹11,25,540

Annual CTC	₹12,00,000
− Employer PF	₹21,600
− Gratuity	₹28,860
= Gross salary	₹11,49,540
− Employee PF	₹21,600
− Professional tax	₹2,400
− Income tax (new regime)	₹0
= Annual in-hand	₹11,25,540

Estimate for FY 2025-26. Employer PF capped at ₹15,000 basic per month. Actual pay depends on your company's salary structure.

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How to Use the CTC to In-Hand Salary

Enter your annual CTC and the basic salary percentage from your offer letter (often 40–50%). The tool deducts employer and employee PF, gratuity, professional tax and new regime income tax. You'll see your estimated monthly in-hand salary with a full breakdown.

Frequently Asked Questions

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