CTC to In-Hand Salary Calculator (India) — PF, ESI, PT, Gratuity & New-Regime TDS
Convert an Indian CTC offer into monthly take-home: basic and HRA split, employer and employee EPF (with the ₹15,000 wage ceiling option), EPS, ESI when gross is within ₹21,000, professional tax, gratuity accrual inside CTC, the standard deduction and FY 2025-26 new-regime income tax with the ₹12 lakh rebate, monthly TDS, and how much of the CTC never reaches your account.
How it works
fixed pay = CTC − variable · basic = fixed × basic% · employer PF = 12% × basic (or × ₹15,000 ceiling); gratuity = 4.81% × basic; ESI 3.25% employer / 0.75% employee if gross ≤ ₹21,000 · gross = fixed − employer PF − gratuity − employer ESI · in-hand = gross − employee PF (12%) − ESI − PT − income tax · new regime: (gross + bonus − ₹75,000) at 0/5/10/15/20/25/30% slabs, 87A rebate to ₹12 L, 4% cess
Cost to company is what the employer spends, not what the employee receives: it bundles the employer's provident-fund contribution, the gratuity it accrues, sometimes insurance, and the variable pay that may or may not arrive, on top of the gross salary from which the employee's own PF, ESI where applicable, professional tax and monthly TDS are then deducted. Working the offer down to a monthly bank credit means peeling those layers in order, with the tax computed on the projected annual salary under the chosen regime — and the new regime's rebate up to twelve lakh makes the slab arithmetic matter a great deal near that line.
Worked example
A ₹12 lakh CTC with ₹1 lakh variable, basic at 40% (₹4.4 lakh) and HRA at half of basic: employer PF is ₹52,800 and gratuity accrual ₹21,164, leaving a gross of about ₹10.26 lakh — ₹85,500 a month. Employee PF takes ₹4,400 a month, professional tax ₹200, and because gross plus bonus (₹11.26 lakh) minus the ₹75,000 standard deduction is under ₹12 lakh, new-regime tax is nil: in-hand is about ₹80,900 a month, 81% of CTC, with roughly ₹1.27 lakh a year going into PF and gratuity for later.
Frequently asked questions
Why is my in-hand so much lower than CTC ÷ 12?
Because CTC includes the employer's PF and gratuity, the variable pay, and sometimes insurance and perks; then your own PF, ESI, PT and TDS come off the gross. 70–85% of CTC as in-hand is normal; the gap is smaller in the new regime and at low salaries.
Should I opt for PF on the ₹15,000 ceiling?
It raises take-home now (both contributions shrink) at the cost of retirement savings that earn ~8% tax-free. If you are disciplined enough to invest the difference, it is a wash; most people are better off leaving PF on full basic.
Related calculators
Indian tax and finance rules as of FY 2025-26 (AY 2026-27) — slabs, thresholds and state schedules change with each Budget and state notification. Figures are estimates for planning; confirm with the Income Tax portal, your employer's payroll, your bank or a chartered accountant before acting.