Salary Calculator India: CTC to In-Hand Salary
This calculator turns an annual CTC into the monthly salary that reaches your bank account. It splits CTC into basic, HRA and special allowance, removes the employer's EPF and gratuity that sit inside CTC, deducts your EPF, professional tax and income tax, and shows the monthly in-hand figure with a full breakdown.
The default basic salary is 50% of CTC, following the wage definition in the Labour Codes that came into force in November 2025: basic plus dearness allowance must be at least half of total pay. Older structures used 35% to 40%, so both options are available.
How CTC becomes in-hand salary
Gross salary = CTC − Employer EPF − Gratuity
In-hand = Gross − Employee EPF − Professional tax − Income tax
Monthly in-hand = In-hand ÷ 12
Basic is a percentage of CTC. HRA is 40% or 50% of basic. Special allowance is whatever is left after the other components. EPF is 12% of basic from you and 12% from the employer (many employers cap it at the ₹15,000 wage ceiling, which is ₹1,800 a month each). Gratuity is accrued at 4.81% of basic. Income tax uses the same slabs as the income tax calculator, with EPF counted under 80C and HRA exemption applied in the old regime.
Worked example
CTC ₹12,00,000, basic 50%, HRA 50% of basic, EPF on full basic, employer EPF and gratuity inside CTC, professional tax ₹2,400, new regime:
| Basic | ₹6,00,000 |
|---|---|
| HRA | ₹3,00,000 |
| Employer EPF (12%) | ₹72,000 |
| Gratuity (4.81%) | ₹28,860 |
| Special allowance (balance) | ₹1,99,140 |
| Gross salary | ₹10,99,140 |
| Employee EPF | − ₹72,000 |
| Professional tax | − ₹2,400 |
| Income tax (new regime) | ₹0 (taxable ₹10,24,140 is under the rebate limit) |
| Annual in-hand | ₹10,24,740 |
| Monthly in-hand | ₹85,395 |
The gap between ₹1 lakh a month of CTC and ₹85,000 in hand is entirely EPF, gratuity and professional tax. Tax starts to bite above about ₹13.5 lakh of CTC with this structure.
What the Labour Codes change
The four Labour Codes define wages so that basic pay and dearness allowance make up at least 50% of total remuneration. Because EPF and gratuity are calculated on basic, a higher basic means larger retirement contributions and a smaller in-hand salary for the same CTC, though your total savings go up. HRA also grows with basic, which helps if you claim the HRA exemption under the old regime.
Compare your offer with the income tax calculator to test both regimes with your actual deductions, and use the salary to hourly calculator to compare against contract rates.
Frequently asked questions
Why is my in-hand salary so much lower than my CTC?
CTC includes money you never see each month: the employer's EPF contribution, gratuity accrual, sometimes insurance premiums and variable pay. Your own EPF, professional tax and TDS then come off the gross. For a typical structure, in-hand is 75% to 85% of CTC before tax.
What is the 50% basic rule under the new labour law?
The Code on Wages defines wages so that basic pay plus dearness allowance must be at least 50% of total remuneration. If allowances exceed 50%, the excess is added back to wages for EPF and gratuity. The Codes came into force in November 2025, so most employers now structure basic at 50% of CTC.
Is EPF calculated on full basic or ₹15,000?
The statutory minimum is 12% of wages up to the ₹15,000 ceiling (₹1,800 a month). Many employers contribute on full basic. Check your offer letter and pick the matching option. Employee and employer contributions are usually equal.
Which tax regime does the calculator use?
By default it computes both and applies the lower tax. Choose a specific regime to see that one. Under the old regime it applies HRA exemption from the rent you enter and counts EPF plus your other investments under 80C.
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Last updated . Formulas are shown on the page and checked against the worked example.
This calculator gives an estimate. Employers structure CTC differently (variable pay, insurance premiums, meal cards, NPS), state professional tax varies, and tax depends on your full return. Check your offer letter and payslip for the exact components.