In-hand salary calculator

Your CTC is not what reaches your bank account. Enter your CTC to see your monthly in-hand pay after provident fund, professional tax and income tax, under both tax regimes.

Rules for FY 2026-27 · Checked 24 October 2026

12 lakh
₹
%

Check your offer letter. Under the labour codes, basic and DA are usually at least half of pay.

₹

Paid once or twice a year, so it is left out of the monthly figure.

PF, gratuity and professional tax

Off: PF stops at the ₹25,000 a month wage ceiling, as most employers do. On: 12% of all of your basic.

Most offer letters include it at 4.81% of basic. You get it only after leaving.

2.4 thousand
₹

₹2,400 or ₹2,500 in most states, zero in Delhi and some others.

Old regime extras
₹
₹

PPF, ELSS, insurance. Your PF already counts.

₹

80D health insurance, NPS, home loan interest.

In-hand salary a month₹91,395

Under the new regime, after PF, professional tax and income tax.

  • ₹10,96,740 a year reaches your bank account: 91% of your CTC.
  • Your PF grows by ₹6,000 a month, counting your employer's share.
  • You pay no income tax at this salary in the new regime.
Take-home91%
  • Take-home pay₹10,96,740
  • Income tax₹0
  • PF (yours + employer)₹72,000
  • Gratuity and professional tax₹31,260
Monthly pay slip
Basic
₹50,000
HRA and other allowances
₹44,595
Your PF
− ₹3,000
Professional tax
− ₹200
Income tax (TDS)
₹0
In hand
₹91,395
Where your CTC goes in a year
CTC
₹12,00,000
Employer PF
− ₹36,000
Gratuity
− ₹28,860
Gross salary
₹11,35,140
Your PF
− ₹36,000
Professional tax
− ₹2,400
Income tax
₹0
Take-home for the year
₹10,96,740

From CTC to in-hand, step by step

  1. CTC is everything your employer spends on you in a year.
  2. Take out the parts you never see each month: employer PF (12% of basic) and gratuity (usually 4.81% of basic). What is left is your gross salary.
  3. From gross salary, take out your own PF (another 12% of basic), professional tax (up to ₹2,500 a year) and income tax.
  4. What remains is your take-home pay. Bonus and variable pay are usually paid once or twice a year, so they are not in the monthly figure.

How PF changed in September 2026

From 17 September 2026 the EPF wage ceiling went up from ₹15,000 to ₹25,000 a month. Most employers pay PF on basic up to this ceiling, so the usual PF deduction rose from ₹1,800 to ₹3,000 a month, and the employer pays the same again. Your in-hand pay drops a little, but your PF savings grow.

Some employers pay PF on the full basic. Switch on “PF on the full basic pay” to see the effect.

Example: ₹12 lakh CTC

With basic at 50% of CTC, PF at the wage ceiling, gratuity in the CTC and ₹2,400 professional tax, a ₹12 lakh CTC gives a gross salary of about ₹11.35 lakh. Under the new regime, income tax is zero, so the in-hand pay is about ₹91,400 a month.

Frequently asked questions

What is the difference between CTC and gross salary?

CTC includes the employer’s PF contribution and gratuity, which you do not receive each month. Gross salary is CTC minus those two, and is the figure your tax is worked out on.

How much PF is deducted from salary?

12% of your basic pay (plus DA). Most employers stop at the wage ceiling of ₹25,000 a month, which makes it ₹3,000 a month. Your employer adds the same amount, of which part goes to your pension (EPS).

Why is my in-hand lower in the old regime even though I have deductions?

The old regime has higher rates. Unless your HRA exemption, 80C and other deductions are large, the new regime usually leaves more in hand. The calculator shows both.

Is gratuity part of in-hand salary?

No. It is paid only when you leave after 5 years of service (1 year for fixed-term employees), so it is part of CTC but not of the monthly pay.

In-hand salary by CTC

Sources: EPFO, Income Tax Department

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