CTC to In-Hand Salary Calculator

CTC (cost to company) is everything your employer spends on you, including its own PF contribution and the gratuity it sets aside. Your in-hand pay is what reaches your bank after your PF, professional tax and income tax.

Under the new Labour Codes, wages are usually at least half of pay.
PF calculated on
Gratuity included in CTC?
Depends on the state; ₹0 in states without it.
Tax regime
Results update as you type.

In-hand salary per month

₹91,387

₹10,96,640 a year

Gross salary (CTC minus employer PF and gratuity)
₹11,35,140
Income tax for the year
₹0new regime
Your PF for the year
₹36,000saved in your PF account
In-hand as % of CTC
91.39%

Bonuses, variable pay, meal cards and reimbursements are not included. Your payslip may differ slightly.

Yearly breakup

Yearly breakup
ComponentPer yearPer month
CTC₹12,00,000₹1,00,000
Employer PF−₹36,000−₹3,000
Gratuity (4.81% of basic)−₹28,860−₹2,405
Gross salary₹11,35,140₹94,595
Your PF (12%)−₹36,000−₹3,000
Professional tax−₹2,500−₹208
Income tax−₹0−₹0
In-hand₹10,96,640₹91,387

About this calculator

Enter your CTC and how it is structured. The calculator follows the usual Indian payroll method and shows the full yearly and monthly breakup.

How to use it

  1. Enter your yearly CTC.
  2. Enter basic pay as a share of CTC.
  3. Choose how PF is calculated and whether gratuity is in the CTC.
  4. Enter professional tax and choose the tax regime.

The formula

In-hand = CTC − employer PF − gratuity − your PF − professional tax − income tax
employer PF
12% of basic, or of ₹25,000 a month if capped
gratuity
4.81% of basic when included in CTC
your PF
12% on the same base as employer PF

Worked example

₹12 lakh CTC, 50% basic, PF capped, gratuity included

  1. Basic ₹6,00,000; employer PF ₹36,000; gratuity ₹28,860; gross salary ₹11,35,140.
  2. New regime: taxable ₹10,60,140, so no income tax.
  3. In-hand: ₹10,96,640 a year, about ₹91,387 a month.

What the result means

A higher basic raises PF and gratuity, which lowers take-home pay today but grows your savings.

Assumptions

  • The whole CTC is fixed pay.
  • Old regime counts only your PF as an 80C deduction.

Limitations

  • Bonuses, variable pay and flexible benefits are not included.
  • Professional tax differs by state.

Frequently asked questions

Why is my in-hand salary lower than CTC ÷ 12?

CTC includes employer PF and gratuity, and your own PF, professional tax and income tax are deducted from salary.

Is ₹12 lakh CTC tax-free?

Often yes in the new regime, because gross salary after employer PF and gratuity, minus ₹75,000 standard deduction, is usually under ₹12 lakh.

What is the gratuity part of CTC?

About 4.81% of basic set aside for gratuity, paid only when you leave after the qualifying period.

For information only. Tax results depend on the law in force, the tax period and your circumstances, and rates are revised from time to time. This is not tax advice. Please confirm the applicable rate and treatment with a qualified professional or the official notifications.

Last reviewed on 1 October 2026. Found a mistake? Tell us.