Enter your CTC and salary structure to instantly calculate your monthly take-home pay with a full breakdown of deductions.
Last updated: March 2026
Total cost to company per year
Typically 40%-50% of CTC
Usually 40%-50% of basic salary
Both employer and employee contribute 12% of basic salary
Varies by state (max ₹2,500/year)
Insurance premiums, loan recovery, etc.
This free salary calculator helps you convert your annual CTC (Cost to Company) into the actual monthly in-hand salary you receive in your bank account. Understanding the gap between your CTC and take-home pay is essential for financial planning, budgeting and comparing job offers.
The calculator instantly computes your monthly and annual take-home salary along with a detailed breakdown of every salary component and deduction.
Your CTC is not the amount you take home. It is the total cost your employer bears to employ you. Here is how a typical CTC is structured:
CTC = Gross Salary + Employer PF + Employer ESI + Gratuity + Insurance + Other Benefits
Gross Salary is the amount before your personal deductions. It includes basic salary, HRA, special allowance, conveyance allowance, medical allowance and any other fixed or variable components. Gross salary equals CTC minus the employer-side contributions like PF, gratuity and group insurance.
Net Salary (In-Hand) is what lands in your bank account each month. It equals gross salary minus employee PF contribution, professional tax, TDS (income tax) and any other deductions.
The difference between CTC and in-hand salary can be anywhere from 20% to 35% depending on your salary structure, tax slab and deduction choices. For a CTC of ₹12 lakh, a typical in-hand salary ranges from ₹72,000 to ₹85,000 per month depending on the PF and tax situation.
The Employees' Provident Fund (EPF) is a mandatory retirement savings scheme for organisations with 20 or more employees. Both the employer and the employee contribute 12% of the basic salary each month.
The employer's PF contribution is part of your CTC, so it reduces your gross salary. The employee's PF contribution is deducted from your gross salary, reducing your take-home pay. However, PF earns interest (currently 8.25% per annum) and is a powerful tool for long-term retirement savings with tax benefits under Section 80C.
Professional tax is a state-level tax deducted by employers from employees' salaries. Not all states levy professional tax. The Constitution of India (Article 276) caps it at ₹2,500 per year. Here are the rates for major states:
| State | Annual Amount (₹) |
|---|---|
| Karnataka | 2,400 |
| Maharashtra | 2,500 |
| West Bengal | 2,500 |
| Andhra Pradesh | 2,500 |
| Telangana | 2,500 |
| Tamil Nadu | 2,500 |
| Gujarat | 2,500 |
| Madhya Pradesh | 2,500 |
| Kerala | 2,500 |
| Assam | 2,500 |
| Odisha | 2,500 |
| Bihar | 2,500 |
| Jharkhand | 2,500 |
| Meghalaya | 2,500 |
| Delhi | Nil |
| Rajasthan | Nil |
| Haryana | Nil |
| Uttar Pradesh | Nil |
| Uttarakhand | Nil |
Professional tax paid is deductible from your taxable income under both the old and new income tax regimes. If your state does not levy professional tax, set the value to zero in the calculator above.
CTC (Cost to Company) is the total annual expenditure your employer incurs on you. It includes your salary, employer PF, gratuity, insurance and all benefits. Gross salary is the amount you earn before personal deductions — it equals CTC minus employer-side costs like PF contribution, gratuity provision and group insurance. Net salary (also called in-hand or take-home salary) is what you actually receive after deducting employee PF, professional tax, income tax (TDS) and any other deductions from gross salary. For example, on a CTC of ₹12 lakh, your gross might be around ₹10.2 lakh and net around ₹8.5–9.5 lakh depending on deductions.
Both employer and employee contribute 12% of the basic salary to the Provident Fund. The employer's share comes from the CTC (so it reduces your gross salary), while the employee's share is deducted from gross salary (reducing your take-home pay). For a basic salary of ₹40,000 per month, PF contribution would be ₹4,800 each from employer and employee, totalling ₹9,600 per month or ₹1,15,200 per year going into your PF account.
Professional tax is a state-imposed tax on salaried individuals and professionals. Your employer deducts it from your salary and remits it to the state government. The amount ranges from ₹0 to ₹2,500 per year depending on the state. States like Delhi, Rajasthan, Haryana and Uttar Pradesh do not levy professional tax. Professional tax paid is deductible from your taxable income under both old and new income tax regimes.
The main deductions from a salaried employee's pay are: employee PF contribution (12% of basic salary), professional tax (₹200/month approximately), TDS or income tax deducted based on your tax slab, and optionally ESI (1.75% of gross for salaries below ₹21,000/month). Companies may also deduct group insurance premiums, voluntary PF contributions, or loan repayments. The total of all these deductions determines the gap between your gross salary and take-home pay.
TDS (Tax Deducted at Source) is your income tax deducted by the employer every month. The employer projects your total annual income, applies the applicable tax slab rates (old or new regime), factors in deductions and exemptions based on proofs submitted, and divides the annual tax by 12 to calculate monthly TDS. You can reduce TDS by submitting investment proofs (80C, 80D, HRA receipts) to your employer. This calculator provides an estimated TDS figure based on the new tax regime slab rates for FY 2025-26.
To maximise your take-home salary: choose the tax regime (old vs new) that results in lower tax for your income and deduction level; restructure your salary to include tax-efficient components like HRA, meal coupons and reimbursements; submit investment proofs early to reduce monthly TDS; maximise Section 80C (₹1.5 lakh), 80D (health insurance) and 80CCD(1B) (NPS ₹50,000) deductions under the old regime; and claim HRA exemption if you pay rent.