CTC to in-hand salary

Take-Home Salary Calculator

CTC is what you cost your employer; take-home is what reaches your bank. The gap is employer PF and gratuity provision (which never reach you at all), then PF, ESIC, professional tax and TDS on the way out.

Monthly take-home₹93,795₹11,25,540 a year
If you chose the old regime₹87,287Worse by ₹6,508 a month

Monthly earnings

Basic₹50,000
HRA(50% of Basic)₹25,000
Special allowance₹20,795
Gross salary₹95,795

Monthly deductions

Provident Fund− ₹1,800
ESIC(gross above ₹21,000)− ₹0
Professional tax− ₹200
TDS(new regime)− ₹0
Take-home₹93,795

In your CTC but never paid to you

Employer PF₹1,800
Gratuity provision(4.81% of Basic, an accrual)₹2,405

How it is calculated

CTC is not salary. It is what you cost your employer, and two parts of it never reach you: the employer's PF contribution and the gratuity provision, which is an accrual nobody is paid until they leave. Take those out of CTC and what is left is your gross salary.

From gross, four things are deducted: your own PF (12% of Basic, capped at a ₹15,000 wage by default), ESIC (0.75%, only while gross is ₹21,000 or less), professional tax (a state levy — four large states charge none) and TDS. What survives is take-home.

The split of gross into Basic, HRA and special allowance is a company decision, not a legal one. This calculator uses Basic at 50% of CTC — the floor the wage code expects — and HRA at 50% of Basic in a metro or 40% elsewhere. Change the Basic percentage above and watch PF and gratuity move with it; that is exactly why the split matters.

This is a fixed-CTC estimate. It excludes variable pay, bonus, NPS, and any 80C or 80D investment beyond your own PF — all of which the old regime lets you claim, and the new regime does not.

Frequently asked questions

Why is my in-hand salary so much lower than my CTC?
Two different reasons. Employer PF and the gratuity provision are part of CTC but are never paid to you. Then your own PF, ESIC, professional tax and TDS are deducted from gross salary.
How is Basic salary decided?
There is no single legal rule, but the wage code expects Basic to be at least 50% of total remuneration. This calculator uses 50% of CTC by default and lets you change it, because a lower Basic reduces PF and gratuity.
Should I choose the old or the new tax regime?
The new regime has lower rates but almost no deductions. The old regime is usually better if you claim substantial HRA, 80C and 80D. Compare both above with your own numbers rather than following a rule of thumb.
When is ESIC deducted?
When gross monthly wages are ₹21,000 or less. The employee pays 0.75% and the employer 3.25%. Cross ₹21,000 and ESIC stops entirely.
Is professional tax the same everywhere in India?
No. It is a state levy, so the amount and the slabs differ by state, and some states — including Delhi, Haryana, Uttar Pradesh and Rajasthan — do not levy it at all.
Does this include my variable pay or bonus?
No. Enter your fixed CTC. Variable pay is usually paid on performance and at a different frequency, so including it would overstate your monthly take-home.

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