Business Calculators
Salary Calculator
CTC to in-hand breakup — basic, HRA, PF, income tax, gross and net.
Rates last verified 2026-10-01 — always confirm against the current notification before filing.
Salary Calculator
www.indianbusinesstools.com
Salary breakup and in-hand pay
New regime, Maharashtra · www.indianbusinesstools.com
How CTC becomes in-hand pay
This is an estimate, not your actual payslip — every employer structures CTC differently. It assumes basic pay and HRA as percentages of CTC you set, employer PF at 12% and gratuity at 4.81% of wages sitting inside CTC (so they reduce gross pay), employee PF at 12% deducted from gross, professional tax for the state you pick, and income tax under the new regime (the default) spread evenly across the year as monthly TDS. Tax is worked out on gross salary minus the ₹75,000 standard deduction. PF and professional tax don't reduce tax under the new regime. For the full slab-by-slab working, or to add other income, use the Income Tax Calculator.
By default PF is worked out on basic pay capped at the EPFO wage ceiling of ₹25,000 a month (raised from ₹15,000 with effect from 17 September 2026), so employee and employer PF each top out at ₹3,000 a month. If your employer contributes on your full basic, switch “PF calculated on” to Full basic. Under the new labour codes, if allowances make up more than half your pay, the extra counts as PF wages too, so when basic is below 50% of gross the calculator uses half of gross as the wage for PF and gratuity instead. Gratuity has no ₹25,000 ceiling, so it always uses the full wage. If your payslip still shows PF capped at ₹1,800 a month, your employer hasn't moved to the new ceiling yet — pick the ₹15,000 option to match it. Our EPFO wage ceiling explainer walks through who is affected and why in-hand pay can drop, and how a salary breakup works takes a ₹12 lakh and an ₹18 lakh CTC through to monthly in-hand pay.
Worked example
A ₹12,00,000 CTC with basic and HRA each set to 50% of basic pay works out to a gross monthly salary after employer PF and gratuity are carved out of CTC. Employee PF, state professional tax and income tax are then deducted from that gross. The gross comes to about ₹11.35 lakh a year, which falls under the ₹12.75 lakh no-tax limit, so the income tax row shows zero. That assumes PF capped at the ₹25,000 wage ceiling; on full basic the gross drops to about ₹10.99 lakh. The calculator above shows the exact monthly figure as you adjust the assumptions.
Frequently asked questions
What's the difference between CTC and in-hand salary?
CTC (Cost to Company) is everything an employer spends on you — basic pay, allowances, and its own contributions like employer PF and gratuity. In-hand salary is what actually lands in your bank account after employee-side deductions (PF, professional tax, income tax) come out of the gross pay portion of CTC.
Does this include income tax (TDS on salary)?
Yes, under the new tax regime, which is now the default and the better choice for almost everyone. Tax is worked out on gross salary minus the ₹75,000 standard deduction, including the 87A rebate (no tax up to ₹12.75 lakh of salary), surcharge and 4% cess, then spread over 12 months. It doesn't model the old regime or other income. Use the Income Tax Calculator for the slab-by-slab working.
Is PF 12% of my full basic salary?
Not always. The EPFO wage ceiling — ₹25,000 a month from 17 September 2026, up from ₹15,000 — decides who must be covered, and many employers also cap the 12% contribution at that wage, so PF tops out at ₹3,000 a month each for you and your employer. Others contribute 12% of full basic. The ceiling change alone doesn't force your employer to raise your PF; check your payslip and pick the matching option in the calculator.
Why does professional tax change by state?
Professional tax is levied by state governments, not the centre, so both whether it applies and the slab amount vary by state — see the Professional Tax Calculator for the full state-wise breakdown.
Are employer PF and gratuity always part of CTC?
Most employers structure offers this way, but it's a company policy choice, not a universal rule — some show gratuity separately or don't include it in the CTC figure at all. Check your own offer letter's breakup rather than assuming this calculator's defaults match it exactly.