CTC to In-Hand Salary Calculator

Your CTC (Cost to Company) is what your employer spends on you annually. Your in-hand salary is what actually credits to your bank account every month. The difference — often 20–35% — goes to PF contributions, income tax (TDS), professional tax, and in some cases, gratuity provisions.

The calculation follows a standard sequence: we first derive your monthly gross salary by subtracting employer PF (12% of basic, on basic capped at ₹25,000) and gratuity (4.81% of basic, if included in CTC) from your annual CTC, then divide by 12. From the gross, we subtract your employee PF contribution (12% of basic, max ₹3,000/month), monthly TDS based on your annual taxable income and chosen tax regime, and professional tax (typically ₹200/month).

Under the new tax regime for FY2026-27, a ₹75,000 standard deduction applies and income up to ₹12 lakh is fully rebated under Section 87A (Budget 2025) — making this regime better for most employees below ₹15-18 LPA. Under the old regime, deductions like 80C investments (up to ₹1.5L), HRA exemption, and NPS contributions can reduce taxable income significantly.

This calculator uses the official FY2026-27 tax slabs from the Finance Act 2025 (Budget 2025), the EPFO wage ceiling of ₹25,000 (raised from ₹15,000 on 17 September 2026), and a standard salary structure of 50% basic with 50% HRA of basic — aligned with the Code on Wages, 2019, which requires basic + DA to be at least 50% of total CTC. The four labour codes took effect nationally on 21 November 2025, though state-level rules are still being finalised unevenly, so actual enforcement varies by state. Your actual salary structure may differ — check your offer letter CTC breakup for the exact figures.

Central or state government employee? Your pay follows the pay matrix rather than a CTC. Use the 8th Pay Commission calculator to see your new basic, DA and in-hand pay at any fitment factor.