Free tool

In-hand salary calculator — CTC to take-home

Enter your yearly CTC and see what actually reaches your bank account each month, after PF, Professional Tax and income tax.

Basic

HRA

Special allowance

Gross salary (per month)

− Your PF

− Professional Tax

− Income tax (TDS)

In-hand salary per month

In-hand per year

Paid by the employer, not in your pay: PF + gratuity (per year)

Income tax for the year

Make a payslip for this salary

From CTC to in-hand, step by step

CTC (cost to company) is everything a company spends on you in a year. Not all of it is paid out monthly, and not all of what is paid out reaches your account.

Remove what the employer pays on your behalf. The employer's own PF contribution (12% of PF wages) and, in many offers, gratuity (about 4.81% of Basic) sit inside CTC but are never part of the monthly salary. What remains is your gross salary.
Split gross into components. Basic is usually 40–50% of CTC — under the new Labour Codes, wages (Basic + DA) should be at least half of total pay. HRA is commonly 40% (non-metro) or 50% (metro) of Basic, and the rest is a special allowance.
Subtract your deductions. Your own PF (12% of Basic, on wages capped at ₹25,000 since 17 September 2026 — see the PF calculator and what changed), Professional Tax where your state charges it (state-wise slabs), and income tax deducted at source.
What's left is in-hand. Divide by 12 for the monthly figure.

Worked example: ₹8 lakh CTC

With Basic at 50% (₹33,333 a month), PF on capped wages and employer PF inside CTC: employer PF (on the ₹25,000 ceiling) is ₹36,000 a year, so gross salary is ₹7,64,000. Taxable income after the ₹75,000 standard deduction is ₹6,89,000 — under ₹12 lakh, so income tax is nil after the rebate. Your PF (₹3,000 a month) and Professional Tax (₹2,500 a year) leave about ₹60,460 in hand each month.

Old regime or new?

This calculator uses the new regime, which is now the default. The old regime can still work out better if you claim large deductions — HRA exemption on rent (HRA calculation), 80C investments, home-loan interest. If you are deciding, work out both with your actual figures.

Companies using SetuWork payroll can turn any CTC into a salary structure from a template, and every month's payslip shows the deductions, the employer's contributions and CTC side by side.

Questions

In-hand salary calculator — questions

How is in-hand salary calculated from CTC?

Take the CTC, remove the parts the employer pays on your behalf (employer PF and, if it is included, gratuity) to get gross salary. Then subtract what is deducted from you: your own 12% PF, Professional Tax and income tax (TDS). What is left, divided by 12, is the monthly in-hand salary.

Why is my in-hand salary so much lower than my CTC?

CTC counts everything the company spends on you in a year, including its own PF contribution and gratuity, which you do not receive in your monthly pay. On top of that, your own PF, Professional Tax and income tax are deducted from the gross salary.

Which tax regime does this calculator use?

The new tax regime, which is the default: a standard deduction of ₹75,000, slabs of 0% up to ₹4 lakh, 5% to ₹8 lakh, 10% to ₹12 lakh, 15% to ₹16 lakh, 20% to ₹20 lakh, 25% to ₹24 lakh and 30% above, the rebate that makes income up to ₹12 lakh tax-free, and 4% cess. Check the slabs for the current year before relying on it.

Is income up to ₹12.75 lakh tax-free?

For a salaried person in the new regime, yes: ₹12.75 lakh minus the ₹75,000 standard deduction is ₹12 lakh of taxable income, which the rebate brings to nil tax. Just above that, marginal relief means the tax cannot be more than the income above ₹12 lakh.

Does Professional Tax apply everywhere?

No. Only some states charge it, and the amount depends on the state and the salary. Maharashtra, for example, charges ₹2,500 a year for most salaried people. Set it to 0 if your state does not have it — see the Professional Tax slabs guide for each state.

Is this calculator exact?

It is an estimate. Your actual TDS depends on other income, the regime you choose, and your company's exact salary structure and rounding. Use it to compare offers and plan; your payslip is the final word.

Payroll that works this out for everyone

SetuWork turns each CTC into a salary structure, PF, PT and payslips every month. Free for teams up to 10 people — no card required.