CTC to In-Hand Salary Calculator

Instantly calculate your take-home pay from your Cost to Company (CTC) in India.

Compensation Details

₹
Example: 6,00,000 for 6 Lakhs
50%
Usually 40% to 50% for standard structuring.
For Income Tax / TDS estimates, we suggest consulting a CA, as deductions depend on savings (80C, HRA, etc).

Your Estimated Take-Home Pay

Monthly In-Hand Salary

₹ 0

Annual In-Hand: ₹ 0

Salary Component Monthly (₹)
Gross Earnings
Basic Salary 0
HRA (House Rent Allowance) 0
Special Allowance 0
Gross Monthly Salary 0
Deductions
Total Deductions 0

Understanding CTC vs Gross vs In-Hand Salary

CTC (Cost to Company)

The total amount the employer spends on you annually. Includes your salary plus employer's PF contribution, gratuity, health insurance, and other benefits. This is the number in your offer letter.

Gross Salary

CTC minus employer-side contributions (Employer PF, gratuity). This is what you earn before employee deductions. Your monthly salary slip gross = Basic + HRA + All Allowances.

In-Hand / Net Salary

What actually hits your bank account. Gross salary minus Employee PF (12% of Basic), Professional Tax (₹200/month), and TDS (income tax deducted at source by employer).

Salary Structure Examples at Different CTC Levels

Estimated monthly in-hand salary for different annual CTCs at a standard 50% basic, with EPF and ₹200 Professional Tax. Income tax excluded (varies by deductions).

Annual CTC Monthly Basic Monthly HRA Gross / Month EPF Deduction In-Hand (approx.)
₹3 Lakh₹12,500₹6,250₹25,000₹1,500₹23,300
₹6 Lakh₹25,000₹12,500₹50,000₹1,800*₹48,000
₹10 Lakh₹41,667₹20,833₹83,333₹1,800*₹81,333
₹15 Lakh₹62,500₹31,250₹1,25,000₹1,800*₹1,23,000
₹20 Lakh₹83,333₹41,667₹1,66,667₹1,800*₹1,64,667**
₹30 Lakh₹1,25,000₹62,500₹2,50,000₹1,800*₹2,48,000**

* EPF capped at ₹1,800/month (12% of ₹15,000 wage ceiling). ** TDS (income tax) not included — use our Income Tax Calculator for exact post-tax in-hand. HRA = 50% of Basic (Metro). Professional Tax = ₹200/month.

Key Salary Components Explained

ComponentTypical %Tax Status
Basic Salary40–50% of CTCFully Taxable
HRA40–50% of BasicPartially Exempt*
Special AllowanceBalance of CTCFully Taxable
LTAVariableExempt (travel proof)
Employee PF (EPF)12% of Basic80C Deductible (Old)
Employer PF12% of Basic (in CTC)Not received in hand
Gratuity4.81% of Basic (in CTC)Paid after 5 yrs service
Professional Tax₹200/month (state-wise)Fully Deductible

* HRA exemption = min of (Actual HRA received, Rent paid − 10% of Basic, 50% of Basic for metro / 40% for non-metro)

Tips to Optimize Your Salary Structure

Maximize HRA if you pay rent

Keep Basic lower and HRA higher to claim more exemption. A ₹50,000 HRA with ₹45,000 rent can save ₹40,000+ in tax annually.

Negotiate food coupons / meal allowance

Up to ₹50/meal × 2 × 22 working days = ₹2,200/month is tax-free. Adds up to ₹26,400/year in savings.

Opt for car lease / vehicle allowance

Company-leased car benefits are taxed at a lower perquisite value (₹900–₹2,400/month) vs reimbursement — great for higher CTCs.

Claim NPS employer contribution (80CCD2)

Employer NPS contribution up to 10% of Basic is exempt from tax — available in BOTH old and new tax regimes. One of the best tax-saving benefits.

Opt out of PF if CTC allows (with caution)

Employees with Basic > ₹15,000 can opt for higher take-home by contributing voluntarily only above ceiling — check with your HR.

Frequently Asked Questions

CTC (Cost to Company) is the total annual expense an employer incurs including basic salary, allowances, employer PF (12% of Basic), gratuity (4.81% of Basic), and health insurance. In-hand (take-home) salary is what you receive after deducting Employee PF (12%), Professional Tax (₹200/month), and TDS. Typically, in-hand = 70–85% of CTC.
Basic Salary is typically 40–50% of CTC. A lower basic reduces EPF contribution and gratuity liability but may reduce retirement savings. A higher basic increases PF, gratuity, and HRA base — but attracts more tax as it's fully taxable. Use the slider in our calculator to match your offer letter.
At ₹10 LPA CTC with 50% basic: Basic = ₹41,667/month, HRA = ₹20,833, Special Allowance = ~₹20,833. Gross = ₹83,333. Deductions: Employee PF = ₹1,800, PT = ₹200. Estimated in-hand (before TDS) ≈ ₹81,333/month. Income tax depends on your regime and deductions.
The gap exists because CTC includes employer-side costs (Employer PF, gratuity, insurance) that don't reach you as cash. Then employee-side deductions (Employee PF 12%, Professional Tax, TDS) are cut from your gross salary. Total gap can be 15–30% of CTC.
Yes, employer's PF contribution (12% of Basic, capped at ₹1,800/month if basic ≤ ₹15,000) is included in most CTC structures. This reduces your net cash salary vs CTC. Always check if the offer letter states CTC inclusive or exclusive of employer PF.
HRA exemption = minimum of: (1) Actual HRA received, (2) Rent paid − 10% of Basic Salary, (3) 50% of Basic (metro cities — Delhi, Mumbai, Kolkata, Chennai) or 40% of Basic (non-metro). To claim HRA exemption, you must pay rent and obtain rent receipts. HRA exemption is only available in the Old Tax Regime.
Gratuity is a lump-sum benefit paid by the employer on resignation, retirement, or death after at least 5 years of continuous service. Formula: Gratuity = (Last drawn Basic + DA) × 15 ÷ 26 × Years of Service. It's included in CTC at ~4.81% of Basic per year but is only received when you leave.
Under the New Tax Regime, most deductions (80C, HRA, LTA) are not allowed, but tax slabs are lower. For incomes up to ₹7 lakh, tax = ₹0 (87A rebate). For higher incomes, if your deductions are less than ~₹3.5 lakh, New Regime often results in lower tax and higher in-hand salary. Use our Income Tax Calculator to compare both regimes.
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