CTC to In-Hand Salary Calculator
Enter the annual CTC and the salary structure — see the monthly breakup, every deduction and the take-home salary.
Monthly salary
- Basic + DA
- ₹25,000.00
- HRA
- ₹10,000.00
- Special allowance
- ₹10,798.08
- Gross salary
- ₹45,798.08
- Employer PF + gratuity + ESI (in CTC)
- − ₹4,201.92
- Employee PF
- − ₹3,000.00
- Professional tax
- − ₹200.00
- Income tax (new regime)
- − ₹0.00
- In-hand salary / month
- ₹42,598.08
Monthly figures. Taxable income ₹4,74,576.92 a year after the ₹75,000 standard deduction; tax ₹0.00 a year including 4% cess.
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Quick answer
CTC full form is Cost to Company — everything the employer spends on you in a year, including its own PF and gratuity. In-hand salary = Gross salary − Employee PF − Employee ESI − Professional tax − Income tax (TDS). Gross salary = CTC − Employer PF − Gratuity − Employer ESI.
| CTC full form | Cost to Company |
|---|---|
| Standard deduction (new regime) | ₹75,000 |
| No tax up to | ₹12 lakh taxable income (₹12.75 lakh salary) |
| PF | 12% employee + 12% employer on basic + DA |
CTC means Cost to Company: the total yearly cost of an employee to the employer. It includes the salary paid each month, but also the employer's PF contribution, the gratuity provision and, for lower salaries, the employer's ESI — money that never reaches the bank account each month.
That is why a ₹6 lakh CTC is not ₹50,000 a month in hand. This calculator splits CTC into the pay slip and works out income tax under the new regime for FY 2026-27. Rates and limits as of 12 October 2026.
The formula
- Gross salary
CTC − Employer PF − Gratuity provision − Employer ESI- Employer / employee PF
12% of basic + DA (or of ₹25,000 if restricted to the ceiling)- Gratuity provision
Basic × 15 ÷ 26 ÷ 12 (≈ 4.81% of basic)- Taxable income (new regime)
Gross salary × 12 − ₹75,000 standard deduction- In-hand salary
Gross − Employee PF − Employee ESI − Professional tax − Income tax
What CTC means in a salary
CTC is the employer's view of your pay. Gross salary is what appears at the top of the pay slip — basic, HRA and allowances. Net or in-hand salary is what reaches the bank after deductions. CTC is always the largest of the three, take-home the smallest.
Variable pay, joining bonus and insurance premiums are often quoted inside CTC too. Leave them out of the CTC you enter here unless they are paid every month.
Basic at 50% under the new labour codes
The Code on Wages, in force from 21 November 2025, requires wages (basic + DA) to be at least half of total pay for PF and gratuity. Many companies have raised basic to 50% of CTC, which increases PF and gratuity and slightly lowers monthly take-home, but adds to retirement savings.
The calculator starts at 50% basic for this reason. Change it to match your offer letter to see the difference.
Income tax in the calculation
Tax is worked out under the new regime, the default from FY 2023-24: no tax up to ₹12 lakh of taxable income thanks to the rebate, a ₹75,000 standard deduction for salaried people, slabs from 5% to 30%, and 4% cess. In the new regime HRA and professional tax do not reduce taxable income.
If you choose the old regime, your tax will differ — use the HRA calculator for the exemption and add your deductions.
Questions people ask.
What is the full form of CTC?
Cost to Company — the total annual amount an employer spends on an employee, including salary, employer PF, gratuity and other benefits.
How do I calculate in-hand salary from CTC?
Subtract employer PF, gratuity and employer ESI from CTC to get gross salary, then subtract employee PF, employee ESI, professional tax and income tax.
What is the difference between CTC and gross salary?
Gross salary is what the pay slip shows before deductions. CTC adds the employer's own contributions — PF, gratuity, ESI — that are not paid to you monthly.
Is income tax zero up to ₹12 lakh?
Under the new regime, yes, for taxable income up to ₹12 lakh, because of the rebate. With the ₹75,000 standard deduction, salary up to ₹12.75 lakh pays no tax.
Why is basic salary 50% of CTC?
The labour codes count allowances above 50% of total pay as wages for PF and gratuity, so many employers now fix basic + DA at 50% of CTC.
Is employer PF part of my salary?
It is part of CTC but not of gross or in-hand salary. It goes into your PF and pension account each month.
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