Business Calculators
Salary Calculator
CTC to in-hand breakup — basic, HRA, PF, gross and net.
Rates last verified 2025-04-01 — always confirm against the current notification before filing.
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% of basic and gratuity at 4.81% of basic sitting inside CTC (so they reduce gross pay), employee PF at 12% of basic deducted from gross, and professional tax for the state you pick. It doesn't deduct income tax (TDS on salary) — that depends on your regime, deductions and slab, which this tool doesn't ask for.
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, then employee PF and state professional tax deducted from that gross — 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)?
No — income tax depends on which regime you choose, your deductions, and your slab, none of which this calculator asks for. It only computes the CTC-to-gross-to-net breakup before income tax; use the TDS Calculator for section-wise TDS on other kinds of payments.
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.
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