What is an in-hand salary calculator?
An in-hand salary calculator converts the cost to company in a job offer into the monthly amount credited to your account. The gap is often surprising: CTC counts employer contributions and benefits you don't receive as cash, and the deductions from your own salary come on top.
This calculator follows a typical Indian salary structure. You set basic pay as a share of CTC, choose how provident fund is calculated, add professional tax and pick the tax regime, and it shows gross salary, every deduction and the take-home pay per month and per year. Use it to compare offers on what you'll actually earn.
How to use the CTC to In-Hand Salary Calculator
1.Enter the CTC
Type the yearly cost to company from your offer, such as 12L.
2.Match your salary structure
Set basic pay as a share of CTC, how PF is calculated, professional tax and whether gratuity is in the CTC.
3.Choose the regime
Pick new or old; for the old regime add other 80C investments and your HRA exemption.
Example: ₹12 lakh CTC, new regime
CTC ₹12,00,000 with 50% basic, PF at 12% of basic, gratuity in CTC and ₹2,500 professional tax:
- Employer PF + gratuity
- ₹72,000 + ₹28,846
- Gross salary
- ₹10,99,154
- Employee PF + professional tax
- ₹72,000 + ₹2,500
- Income tax (new regime)
- ₹0
- Take-home
- ₹85,388 a month
Under the old regime with only PF in 80C, tax would be about ₹1.12 lakh and take-home about ₹76,100 a month.
From CTC to take-home
CTC includes amounts you never receive in your salary account. The employer's 12% PF contribution and the gratuity provision of about 4.81% of basic come off first, giving your gross salary. From that, your own 12% PF, professional tax of up to ₹2,500 a year and income tax are deducted to reach take-home pay.
The labour codes require wages, mainly basic pay and DA, to be at least half of total pay, so 50% basic is the default. A higher basic means more PF, which lowers take-home pay today but builds your retirement savings.
Frequently asked questions
What is the in-hand salary on ₹12 lakh CTC?
With 50% basic, full PF and gratuity in the CTC, about ₹85,400 a month under the new regime, with no income tax.
Why is in-hand so much lower than CTC ÷ 12?
Employer PF, gratuity, your own PF and professional tax all come out before tax. On ₹12 lakh they add up to about ₹1.75 lakh a year.
What does capping PF at ₹1,800 do?
Some employers pay PF only on the first ₹15,000 of basic. That raises take-home pay but lowers your PF savings.
Does it include variable pay?
No. If part of your CTC is a performance bonus, subtract it to see your fixed monthly take-home.
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