WealthJot.ai
WealthJot.ai
💼 In-Hand Salary Calculator
CTC to monthly take-home salary with all deductions and PF

In-Hand Salary: monthly take-home is ₹1.11 L, based on the entered inputs.

Formula

Take-Home Pay = CTC − Employer PF Contribution − Gratuity Contribution − Income Tax − Professional Tax − other deductions

Worked example
InputValue
Annual CTC₹15,00,000
Basic as % of CTC40%
HRA as % of Basic50%
Monthly Rent Paid₹25,000
Metro CityYes
Tax RegimeNew Regime (FY 2024-25)
Monthly Take-Home₹1,10,741
Annual Take-Home₹13,28,893
Monthly TDS₹10,459
Employee PF (12% of Basic)₹1,800
HRA Exemption (Monthly)₹0
Professional Tax (est.)₹200

CTC to in-hand: where the money goes

CTC (cost to company) is what you cost your employer — not what hits your bank. Between the two sit: employer and employee PFA retirement scheme funded from your salary, with employer match. (12% of basic each), gratuity provisioning, professional taxA small state-level tax on salaried income., and income-tax TDS under your chosen regime. The calculator walks your CTC down to the monthly take-home, using your basic-salary percentage, HRA, rent and regime.

Example₹18 lakh CTC with 40% basic: employer PFA retirement scheme funded from your salary, with employer match. (~₹86,000) and gratuity provision (~₹35,000) come off before “gross salary” even starts. Employee PFA retirement scheme funded from your salary, with employer match. clips another ₹86,000, professional taxA small state-level tax on salaried income. ~₹2,400, and income tax (new regime, after the ₹75,000 standard deductionA flat deduction salaried taxpayers get automatically.) takes its shareA unit of ownership in a company. — leaving roughly ₹1.2-1.25 lakh/month in hand. A “₹18 lakh package” quietly becomes ~₹15 lakh of cash salary.
The basic percentage is the hidden lever in any offer: a higher basic means more PFA retirement scheme funded from your salary, with employer match. (forced, tax-free savings and a bigger retirement corpusThe total savings needed to fund your retirement.), more gratuity and more HRA headroom — but less monthly cash. Two offers with identical CTC and different basic splits can differ by thousands a month in hand and lakhs at retirement. Always compare offers on this calculator, not on the CTC headline.
Common mistakeTreating employer PFA retirement scheme funded from your salary, with employer match. and gratuity as “deductions”. They’re deferred pay — your money, growing tax-free at ~8.25% — not money lost. The real comparison between two offers is in-hand + retirals + benefits, not in-hand alone; a lower-cash offer with higher retirals often wins over a career.
✓ You learnedCTC ≠ salary: subtract employer PFA retirement scheme funded from your salary, with employer match. and gratuity provisioning to get gross, then employee PFA retirement scheme funded from your salary, with employer match., professional taxA small state-level tax on salaried income. and TDS to get in-hand. Negotiate and compare offers on take-home plus retirals — and pick your tax regime with the income-tax calculator, since it directly changes the monthly number.
FAQs
Why is my in-hand salary so much lower than my CTC?

Because CTC bundles costs you never see as cash: employer PF (12% of basic), gratuity provisioning (~4.81% of basic), sometimes insurance premiums and even the employer’s NPS or meal-card contributions. Then your own PF, professional tax and income-tax TDS come off the gross. A 15-20% gap between CTC/12 and monthly take-home is normal.

Should I choose a higher basic or higher allowances?

Higher basic → more forced savings (PF), more gratuity, bigger HRA exemption potential (old regime) — but lower monthly cash and slightly higher tax if you can’t use the exemptions. Cash-flow-tight years favour allowances; wealth-building favours basic. There’s no universal answer — run your split through this calculator both ways.