Take-Home Salary Calculator
Work out your monthly in-hand salary from CTC, after PF, gratuity, and tax.
Annual CTC
Basic Salary (% of CTC)
HRA (% of Basic)
Professional Tax (Annual)
State-specific — commonly ₹2,400/year, but several states charge none. Set to 0 if yours doesn't apply it.
Tax Regime
Monthly In-Hand
₹70,294
Monthly In-Hand Salary
₹70,294
Annual Take-Home
₹8,43,523
Monthly Gross Salary
₹75,123
Annual Income Tax
₹33,954
CTC Breakdown
Basic Salary
₹4,80,000
HRA
₹2,40,000
Special Allowance
₹1,81,477
Employer PF Contribution
₹21,600
Gratuity Provision
₹2,76,923
Employee PF (deducted)
−₹21,600
Professional Tax (deducted)
−₹2,400
Income Tax (deducted)
−₹33,954
How this take-home salary calculator works
Your CTC (Cost to Company) isn't what lands in your bank account — it also includes costs your employer pays on your behalf, like their share of provident fund and a yearly gratuity provision. This calculator works backward from CTC through each deduction to your real monthly in-hand salary, the same structure most Indian payroll systems use.
Worked example
A ₹12,00,000 CTC with a 40% basic salary and 50% HRA works out to a ₹4,80,000 annual basic. After subtracting the employer's PF contribution (capped at the ₹15,000/month wage ceiling, so ₹21,600/year) and a gratuity provision (₹4,80,000 × 15/26 ≈ ₹2,76,923), gross salary comes to roughly ₹9,01,477. Under the new tax regime with the standard deduction, income tax works out to about ₹33,954/year — leaving a take-home of roughly ₹8,43,523/year, or about ₹70,294/month.
Why employer PF and gratuity never reach your account
CTC is your employer's total cost of employing you, not your salary. Their matching PF contribution goes straight into your provident fund account (still your money, just locked away until retirement or withdrawal, not part of monthly take-home), and the gratuity provision is only paid out if you leave after 5+ years of continuous service. Both are real components of your CTC that a job offer's headline number includes, but neither shows up in your monthly payslip.
Why PF is capped at ₹15,000 basic
The Employees' Provident Fund scheme sets a statutory wage ceiling of ₹15,000/month — by default, this calculator computes both employer and employee PF contributions on whichever is lower, your actual basic salary or that ₹15,000 ceiling, matching how most employers structure it. Some employers voluntarily contribute on the full actual basic instead of capping it, which would increase both your PF savings and reduce your gross (and therefore take-home) salary slightly compared to what's shown here — check your own payslip if the numbers don't match exactly.
Basic and HRA percentages are assumptions, not fixed rules
Unlike income tax slabs, there's no law dictating what share of CTC must be basic salary or what share of basic must be HRA — every company structures its own pay bands. 40% basic and 50% HRA-of-basic are common defaults, but adjust the sliders to match your actual offer letter or payslip for an accurate result; a higher basic percentage generally means higher PF and gratuity (and a lower take-home for the same CTC), since both scale with basic salary.
Old regime vs. new regime
Income tax on your gross salary is calculated the same way as the standalone Tax Calculator's India logic — the new regime offers a larger standard deduction but no room for 80C or other investment-linked deductions, while the old regime allows those deductions but starts from a smaller standard deduction. Which one leaves you with more take-home depends entirely on how much you actually invest in 80C-eligible instruments; try both regimes with your real numbers rather than assuming one is universally better.
Frequently Asked Questions
Why is my take-home so much lower than my CTC?
CTC includes costs that never reach your bank account — your employer's provident fund contribution and a yearly gratuity provision are both part of CTC but paid elsewhere (your PF account, or only if you leave after 5+ years). On top of that, your own PF contribution, professional tax and income tax are deducted from what's left. The gap between CTC and take-home is normal, not a red flag.
Why is provident fund calculated on ₹15,000, not my full basic salary?
₹15,000/month is the EPF scheme's statutory wage ceiling — by default this calculator computes both employer and employee PF contributions on whichever is lower, your actual basic or that ceiling, matching how most employers structure it. Some employers contribute on your full actual basic instead, which changes the numbers slightly — check your own payslip if it doesn't match exactly.
What percentage should I use for basic salary and HRA?
There's no fixed rule — every company sets its own pay structure. 40% of CTC for basic and 50% of basic for HRA are common defaults, but adjust the sliders to match your actual offer letter or payslip for an accurate result. A higher basic percentage increases PF and gratuity, which lowers take-home for the same CTC.
Should I pick the old or new tax regime?
It depends entirely on how much you invest in 80C-eligible instruments (PPF, ELSS, life insurance, etc.) and claim in other deductions. The new regime has a larger standard deduction but no room for those deductions; the old regime allows them but starts smaller. Try both with your real numbers rather than assuming one is universally better — this calculator uses the same India tax logic as the standalone Tax Calculator.
Does this account for gratuity actually being paid to me?
No — gratuity shown here is the annual accounting provision your employer sets aside as part of your CTC, not a payout. You only actually receive gratuity if you leave after 5 or more years of continuous service, calculated separately at that time under the Payment of Gratuity Act.
Is professional tax the same in every state?
No — professional tax is levied by individual state governments, so the amount (and whether it applies at all) varies. ₹2,400/year is a commonly cited approximate figure, but several states charge less or don't levy it at all. Set the field to match your own state, or 0 if it doesn't apply.
This tool provides general estimates for informational purposes only and isn't financial or tax advice. Consult a qualified financial advisor or tax professional before making financial decisions.