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 | ₹4,80,000 | ₹40,000 | ~40% of CTC; base for PF, HRA, gratuity |
| HRA | ₹2,40,000 | ₹20,000 | Tax-exempt within limits (old regime) |
| Special allowance | ₹3,99,312 | ₹33,276 | Balancing figure; fully taxable |
| Employer PF | ₹57,600 | ₹4,800 | Counted in CTC, not paid to your bank |
| Gratuity | ₹23,088 | ₹1,924 | Paid only after 5 years of service |
From the payslip gross (basic + HRA + allowances) your 12% PF, professional tax and any income tax are deducted. On this structure take-home is roughly ₹88,000/month — about ₹12,000 less than CTC ÷ 12. Ratios vary by employer, so treat this as illustrative.
CTC is the total cost your employer books for you — not your salary. It bundles in things you never see in your bank account: the employer's 12% PF contribution and the gratuity provision. Then, from what does reach your payslip, your own 12% PF, professional tax, and income tax are deducted. Between these two layers, the take-home for a ₹12 lakh CTC lands around ₹88,000 a month rather than the ₹1,00,000 that "CTC ÷ 12" suggests.
Two big CTC items are deferred, not disposable. The employer PF (12% of basic) goes into your EPF account and grows tax-free — real money, but locked until you withdraw it. Gratuity (about 4.81% of basic) is only paid if you complete five years with the employer. Both inflate the CTC headline, which is why a higher CTC with a fat "employer contribution" component can actually deliver less monthly cash than a lower CTC with more allowances.
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.