Convert CTC to in-hand monthly salary
Built & maintained by Pappu Venkata Subbi Reddy, founder of Clacify · Updated July 2026 · Formulas verified against official Indian government sources
The Salary Calculator breaks your CTC (Cost to Company) down into monthly take-home pay. Enter your annual CTC and it estimates the split across basic salary, HRA, special allowance, employer and employee PF, professional tax, and income tax (TDS), leaving you with a realistic in-hand figure. The gap between CTC and take-home confuses most Indian employees — CTC includes employer contributions and benefits you never see in your bank account. This tool demystifies the payslip, helps you compare two job offers on a like-for-like in-hand basis, and shows how restructuring components like HRA can improve your net pay.
CTC is decomposed into its typical components: basic salary (usually 40–50% of CTC), HRA (commonly 50% of basic for metro employees), special/other allowances, and the employer's PF contribution (12% of basic). From gross pay, deductions are applied: the employee's 12% PF, professional tax (state-specific, up to ₹2,500/year), and income tax (TDS) based on the applicable regime and slabs. Take-home = gross − total deductions. Because component ratios vary by employer, the calculator uses standard Indian norms and lets you see the structure; your actual payslip may differ slightly based on your company's salary policy.
| Component | Per year | Per month | Notes |
|---|---|---|---|
| Basic salary | ₹6,00,000 | ₹50,000 | 50% of CTC (the calculator default) |
| HRA | ₹1,20,000 | ₹10,000 | 20% of Basic (the calculator default) |
| Employer EPF | ₹21,600 | ₹1,800 | 12% of Basic, capped at ₹21,600/year — counted in CTC, not paid to your bank |
| Gross salary | ₹11,78,400 | ₹98,200 | CTC − Employer EPF |
| Employee EPF | ₹21,600 | ₹1,800 | Same 12%-capped-at-₹21,600 deduction, taken from your payslip |
| Income tax | ₹0 | ₹0 | Taxable income (₹10,81,800) falls within the ₹12L Section 87A rebate — New Regime |
| Professional tax | ₹2,400 | ₹200 | Flat state-level deduction |
Take-home on this structure is ₹96,200/month — only about ₹3,800 less than CTC ÷ 12, because under the New Regime this income owes no income tax at all; nearly the entire CTC-to-in-hand gap here is the EPF contribution, not tax. Switch to the Old Regime or change the Basic/HRA split in the calculator and the numbers move — this table shows one specific, real scenario, not a universal ratio.
CTC is the total cost your employer books for you — not your salary. It bundles in the employer's EPF contribution, which you never see in your bank account. Then, from what does reach your payslip, your own EPF, professional tax, and (depending on the regime and your income) income tax are deducted. For a ₹12 lakh CTC under the New Regime default, the gap is mostly just the EPF contribution — take-home lands around ₹96,200 a month, not far off the ₹1,00,000 that "CTC ÷ 12" suggests, because tax itself is zero at this income under the New Regime.
Employer EPF (12% of basic, capped at ₹21,600/year under the current wage ceiling) goes into your EPF account and grows tax-free — real money, but locked until you withdraw it, not spendable now. It's a smaller share of CTC than many assume once the cap kicks in: at higher basic salaries, 12% of basic quickly exceeds the ₹21,600 cap, so the employer-EPF share of CTC actually shrinks as a percentage the higher your basic goes.
Never compare offers on CTC alone. A ₹14 lakh CTC loaded with variable pay, joining bonuses, and employer PF can leave you with less monthly cash than a ₹13 lakh CTC that is mostly fixed salary. Strip both down to fixed monthly in-hand — after PF, professional tax and tax — and compare that. Also check the variable/fixed split: variable pay depends on performance and company results, so it is not guaranteed income.
In-hand salary = CTC − Employer PF − Professional Tax − Income Tax (TDS). Employer PF is 12% of Basic salary. For a ₹10 lakh CTC with Basic at 40% (₹4 lakh), Employer PF = ₹48,000/year. After all deductions including taxes, the typical in-hand for ₹10 LPA is ₹65,000–₹72,000/month depending on deductions claimed.
For most salaried employees, in-hand salary is 70–80% of CTC at lower levels (below ₹10 LPA) and 65–75% at higher levels (₹20+ LPA) where tax becomes significant. HRA exemption, 80C investments, and Old vs New regime choice can significantly affect the take-home percentage.