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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 In-Hand Salary in India

What is CTC?

CTC stands for Cost to Company. It implies the total amount an employer spends on an employee in a year. This includes direct benefits (Basic, HRA), indirect benefits (Employer PF contribution, Gratuity), and savings contributions.

What is In-Hand Salary?

In-Hand Salary (or Take-Home Pay) is the amount you actually receive in your bank account every month. It is calculated by taking your Gross Salary and subtracting deductions like Employee PF, Professional Tax (PT), and Income Tax (TDS).

Key Salary Components

  • Basic Salary: Usually 40% to 50% of CTC. It is fully taxable.
  • HRA (House Rent Allowance): Usually 40% (Non-Metro) or 50% (Metro) of Basic Salary. Rent receipts can provide tax exemption.
  • Special Allowance: The remaining balance of CTC after Basic, HRA, and fixed benefits. Fully taxable.
  • EPF (Employee Provident Fund): 12% of Basic Salary is deducted from the employee's salary and deposited into their EPF account.
  • PT (Professional Tax): A state-imposed tax (usually ₹200/month) deducted based on state slabs.

Frequently Asked Questions

CTC (Cost to Company) is the total annual expense an employer incurs for an employee, including basic salary, allowances, employer PF, gratuity, and insurance. In-hand salary is the monthly amount you actually receive after deducting employee PF, Professional Tax, and TDS.
Basic Salary is usually 40-50% of CTC. Some companies set it lower (30-35%) to reduce PF liability. A higher basic increases PF contribution and gratuity but may increase tax. Our calculator lets you adjust the basic percentage to match your offer letter.
A standard CTC breakup: Basic (40-50%), HRA (40-50% of Basic), Special Allowance (variable), Employer PF (12% of Basic up to ₹15,000), Gratuity (4.81% of Basic), and Medical/Other benefits. Deductions include Employee PF, Professional Tax, and TDS.
The gap exists because CTC includes employer contributions (PF, gratuity, insurance) that you don't receive as cash. Additionally, employee PF (12%), Professional Tax (₹200/month), and income tax (TDS) are deducted from your gross salary before payout.
Yes, employer's PF contribution (12% of Basic, max ₹1,800/month) is typically included in CTC. This means your actual cash salary is lower than CTC by this amount. Some companies show it separately. Always clarify during offer negotiation.