Why is my take-home so much lower than my CTC?

CTC is what you cost your employer, not what they pay you. Employer PF, gratuity accrual, employee PF and tax all sit between the two. Most of that gap is still your money though, held in EPF or gratuity rather than paid monthly — only tax genuinely leaves you.

What should I set basic pay to?

Check your offer letter; otherwise 40–50% of CTC is typical. Basic drives PF, gratuity and the HRA exemption cap simultaneously, so a higher basic means more forced saving and a bigger HRA exemption but less monthly cash.

Should I pick 12% of basic or the ₹1,800 cap?

Check your payslip. The wage ceiling of ₹15,000 a month allows PF to be capped at ₹1,800 a month, but many employers apply 12% to your actual basic. The cap gives more monthly cash but less retirement saving.

Which tax regime gives me more take-home?

Toggle between them and compare. The new regime usually wins unless you claim a large HRA exemption plus a full ₹1.5 lakh 80C, 80D and home loan interest. Rent is the biggest swing factor, so enter your real figure.

How is the HRA exemption worked out?

It is the least of three amounts: actual HRA received, rent minus 10% of basic, and 50% of basic in a metro or 40% elsewhere. Because the smallest one wins, all three need to be sizeable. Old regime only.

Do I pay professional tax?

Only in some states. It is capped at ₹2,500 a year nationally, and Delhi, Haryana, Uttar Pradesh and Rajasthan do not levy it. Where charged it is usually ₹200 a month.

Why does my actual payslip differ month to month?

This spreads tax evenly across twelve months; payroll does not. TDS is usually lighter from April and heavier from January to March once investment proofs are due. The annual totals should still match.

Why does my take-home barely change, or even dip, at some CTCs?

Employee PF rises with basic, so more of your raise goes into EPF rather than your bank. And in the narrow bands just above ₹12 lakh, ₹50 lakh, ₹1 crore and ₹2 crore, marginal relief plus 4% cess makes the effective marginal rate 104%, so take-home can dip slightly. Both are real features of the law.

IncomeIndiaUpdated August 1, 2026

In-hand Salary Calculator (India)

Turn a CTC figure into the amount that actually reaches your bank account each month, with the full breakdown of employer PF, gratuity, employee PF, professional tax and income tax under either regime.

How to use this calculator

Step 1
Enter your CTC
The annual cost to company from your offer letter, which includes employer contributions you never actually receive.
Step 2
Set your salary structure
Basic pay is usually 40–50% of CTC and HRA is usually 40–50% of basic. Check your offer letter if you have the breakup.
Step 3
Pick your tax regime
Add rent and your 80C and 80D figures to see whether the old regime leaves you with more each month.

Quick facts

Employee PF: 12% of basic pay
Gratuity accrual: 4.81% of basic pay
Professional tax: Up to ₹2,500 a year
Typical take-home: 70–85% of CTC

Salary details

Start with your CTC and structure. Tax regime and deductions come next.

Tax yearFY 2025-26 (AY 2026-27)

Annual CTC

₹

Adjust CTC

₹3 L₹50 L

Basic pay

Equals ₹6,00,000 a year.

Adjust basic

20%70%

HRA

Equals ₹3,00,000 a year.

Provident fund & gratuity

Employee PF

Employer PF

Include gratuity

Accrues at 4.81% of basic. Payable on exit after five years.

Payroll deductions

Professional tax state

Annual professional tax

₹

Capped at ₹2,500 a year by the Constitution.

Other annual deductions

₹

Bonus or variable pay

₹

Taxed as salary and included in take-home for the year.

Tax settings

Tax regime

Age group

Only changes the old regime, where the basic exemption rises with age.

Housing

Shown for reference. The HRA exemption is only available under the old regime.

City type

Delhi, Mumbai, Kolkata or Chennai.

Monthly rent paid

₹

An estimate for a resident salaried employee. Confirm the figures against your offer letter and Form 16.

Monthly take-home

₹1,03,581

₹12,42,974 a year · 82.9% of CTC

Gross monthly salary: ₹1,16,595
Employee PF: −₹6,000
Professional tax: −₹200
Income tax (TDS): −₹6,814

Under the new regime. Tax is spread evenly across twelve months.

Annual CTC

₹15,00,000

Basic pay: ₹6,00,000
House rent allowance: ₹3,00,000
Special allowance: ₹4,99,140
Employer PF: ₹72,000
Gratuity accrual: ₹28,860

Annual deductions

₹1,56,166

Employee PF: ₹72,000
Professional tax: ₹2,400
Income tax: ₹81,766
Taxable income: ₹13,24,140

CTC structure

How your cost-to-company is split across pay components.

Basic pay40.0%
House rent allowance20.0%
Special allowance33.3%
Employer PF4.8%
Gratuity accrual1.9%

Gross salary of ₹13,99,140 reaches your payslip. Employer PF and gratuity stay inside CTC but never reach your bank account.

Where the money goes

Take-home against every deduction that comes out of gross salary.

Take-home88.8%
Income tax5.8%
Employee PF5.1%
Professional tax0.2%

Employee PF is still your money, held in your EPF account. Only income tax and professional tax leave your pocket for good.

Regime take-home comparison

Monthly take-home under each regime for the same CTC.

The new regime leaves you with ₹1,03,581 a month. The old regime would leave ₹1,01,301.

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How CTC becomes take-home pay

Two separate subtractions are at work. Employer contributions come out of CTC before you ever see it, and then statutory deductions and tax come out of your gross salary.

Take-home = (CTC − Employer PF − Gratuity) − Employee PF − Professional tax − Income tax

CTC

Cost to company

The headline annual figure. It is what you cost your employer, not what you are paid.

Employer PF

Employer's provident fund share

12% of basic pay. It is real money and it is yours, but it goes into your EPF account rather than your bank.

Gratuity

Gratuity accrual

4.81% of basic pay, from 15 days' pay per year of service. Payable on exit after five years, not monthly.

Employee PF

Your provident fund share

Another 12% of basic, deducted from your salary. Also yours, and it qualifies for 80C in the old regime.

Professional tax

State levy

Capped at ₹2,500 a year nationally. Several states, including Delhi, Haryana, Uttar Pradesh and Rajasthan, do not levy it at all.

The gap between CTC and take-home is usually 15–30%, and most of it is not lost — employer PF, employee PF and gratuity all remain your money. Only income tax and professional tax genuinely leave your pocket.

Assumptions

CTC is treated as gross salary plus employer PF plus gratuity accrual, which is the most common structure in Indian offer letters.
Basic pay is taken as a share of CTC, and HRA as a share of basic, because that is how offer letters are usually built.
Employer PF and gratuity accrual are removed first, since neither reaches your bank account during employment.
Employee PF is 12% of basic pay, or ₹1,800 a month if you choose the wage-ceiling option.
Employee PF is counted toward your 80C limit automatically in the old regime.
Employer PF within statutory limits and accruing gratuity are treated as not taxable, which matches the general position for salaried employees.
Income tax is spread evenly across twelve months. Your employer's actual TDS schedule will be uneven.
Variable pay, bonuses and reimbursements are excluded unless you add them as taxable income.

Frequently asked questions

Answers about the in-hand salary calculator.

Because CTC measures what you cost your employer, not what they pay you. Three things sit inside CTC that never reach your bank account: the employer's 12% PF contribution, gratuity accruing at 4.81% of basic, and then the employee PF and tax that come out of your gross salary. On a ₹15 lakh CTC with a 40% basic, roughly ₹1 lakh goes to employer PF and gratuity before anything else happens. The important point is that most of the gap is not lost money — employer PF, employee PF and gratuity are all yours, just held elsewhere. Only income tax and professional tax genuinely leave you.

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Guides that explain this

Background reading on the ideas behind these numbers.

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This tool is provided for educational purposes only. Results are estimates based on the values you enter and do not constitute financial advice.

Assumptions

CTC is treated as gross salary plus employer PF plus gratuity accrual, which is the most common structure in Indian offer letters.

Basic pay is taken as a share of CTC, and HRA as a share of basic, because that is how offer letters are usually built.

Employer PF and gratuity accrual are removed first, since neither reaches your bank account during employment.

Employee PF is 12% of basic pay, or ₹1,800 a month if you choose the wage-ceiling option.

Employee PF is counted toward your 80C limit automatically in the old regime.

Employer PF within statutory limits and accruing gratuity are treated as not taxable, which matches the general position for salaried employees.

Income tax is spread evenly across twelve months. Your employer's actual TDS schedule will be uneven.

Variable pay, bonuses and reimbursements are excluded unless you add them as taxable income.